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Events

2023/09/18
   Final act published in Official Journal
2023/09/13
   CSL - Draft final act
Documents
2023/09/13
   CSL - Final act signed
2023/07/25
   EP/CSL - Act adopted by Council after Parliament's 1st reading
2023/07/11
   EP - Debate in Parliament
2023/07/11
   EP - Decision by Parliament, 1st reading
Details

The European Parliament adopted by 587 votes to 10, with 38 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council establishing a framework of measures for strengthening Europe's semiconductor ecosystem and amending Regulation (EU) 2021/694 (Chips Act).

The European Parliament's position adopted at first reading under the ordinary legislative procedure amends the Commission proposal as follows:

Purpose and general objectives

The Regulation aims to establish a framework for strengthening the semiconductor ecosystem at EU level . Its first general objective is to ensure that the conditions necessary for the Union's competitiveness and capacity for innovation are met and to guarantee the industry's adaptation to structural change. The second, complementary, general objective is to improve the functioning of the internal market by establishing a uniform EU legal framework to increase resilience and security of supply in the EU in the field of semiconductor technologies.

Chips for Europe initiative

The Initiative aims to achieve large-scale technological capacity building and support related research and innovation activities throughout the Union’s semiconductor value chain. It should also contribute to the achievement of the green and digital transitions, in particular by reducing the climate impact of electronic systems, improving the sustainability of next-generation chips and strengthening the circular economy processes, contribute to quality jobs within the semiconductor ecosystem and address security-by-design principles, which provide protection against cybersecurity threats.

The 5 operational objectives of the initiative may include capacity-building activities and related research and innovation activities. All capacity-building activities will be funded under the Digital Europe programme and related research and innovation activities will be funded under Horizon Europe.

European chips infrastructure consortiums

For the purpose of implementing actions funded under the Initiative, a legal entity may be established in the form of a European chips infrastructure consortium (ECIC). An ECIC should be established by at least three members (founding members), namely Member States, or public or private legal entities from at least three Member States, or a combination thereof, with a view to achieving broad representation across the Union.

Application for status as integrated production facility or open EU foundry

Integrated Production Facilities and Open Foundries in the EU are pioneering facilities for semiconductor manufacturing. Their creation should have a clear positive impact , extending beyond the individual company or Member State, on the EU semiconductor value chain in the medium to long term to ensure the security of supply and resilience of the semiconductor ecosystem, including the growth of start-ups and SMEs , contributing to the EU's green and digital transitions.

They will (i) invest in the Union in continued innovation with a view to achieving concrete advances in semiconductor technology or preparing next-generation technologies; (ii) support the Union talent pipeline by developing and deploying educational and skills training and by increasing the pool of qualified and skilled workforce.

The Commission may award a label of ‘design centre of excellence’ to design centres established in the Union that significantly enhance the Union’s capabilities in innovative chip design through their service offerings or through the development, promotion and strengthening of design skills and capabilities.

Fast-tracking of permit-granting procedures

Member States should ensure that administrative applications related to the planning, construction and operation of integrated production facilities and open EU foundries are processed in an efficient, transparent and timely manner. To that end, all national authorities concerned should ensure that the most rapid treatment legally possible is given to these applications in a manner that fully respects national law and procedure. Where such a status exists in national law, integrated production facilities and open EU foundries should be allocated the status of the highest national significance possible and be treated as such in permit-granting processes.

Strategic mapping of the Union’s semiconductor sector

The Commission should carry out a strategic mapping of the Union’s semiconductor sector which will provide an analysis of the Union’s strengths and weaknesses in the global semiconductor sector and identify factors such as: (i) key products and critical infrastructures in the internal market that are depending on the supply of semiconductors; (ii) main user industries in the Union and their current and expected needs and dependencies; (iii) the technological characteristics, the dependencies on third-country technology and providers, and bottlenecks of the Union’s semiconductor sector including access to inputs; (iv) current and expected needs for skills and effective access to qualified workforce in the semiconductor sector.

Alerts and preventive action

The Commission, in consultation with the European Semiconductor Council, will regularly monitor the semiconductor value chain in order to identify factors that could disrupt, jeopardise or adversely affect the supply of or trade in semiconductors.

If a competent national authority becomes aware of a risk of serious disruption to the supply of semiconductors, it should alert the Commission without delay. Where the crisis stage is activated, the Commission may, upon the request of two or more Member States, act as a central purchasing body on behalf of all Member States willing to participate for their public procurement of crisis-relevant products for critical sectors.

Digital Europe Programme (budget)

The financial envelope for the implementation of the Programme for the period from 1 January 2021 to 31 December 2027 should be EUR 8 168 000 000 in current prices, broken down as follows:

- EUR 2 019 914 000 for Specific Objective 1 – High Performance Computing;

- EUR 1 663 956 000 for Specific Objective 2 – Artificial Intelligence;

- EUR 1 399 566 000 for Specific Objective 3 – Cybersecurity and Trust;

- EUR 507 347 000 for Specific Objective 4 – Advanced Digital Skills;

- EUR 1 002 217 000 for Specific Objective 5 – Deployment and Best Use of Digital Capacities and Interoperability;

- EUR 1 575 000 000 for Specific Objective 6 – Semiconductors .

Documents
2023/06/27
   EP - Specific opinion
Documents
2023/05/22
   EP - Approval in committee of the text agreed at 1st reading interinstitutional negotiations
2023/05/10
   CSL - Coreper letter confirming interinstitutional agreement
2023/02/15
   EP - Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71)
2023/02/13
   EP - Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71)
2023/01/31
   EP - Committee report tabled for plenary, 1st reading
Details

The Committee on Industry, Research and Energy adopted the report by Dan NICA (S&D, RO) on the proposal for a regulation of the European Parliament and of the Council Establishing a framework of measures for strengthening Europe's semiconductor ecosystem (Chips Act).

The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:

Subject matter

The proposed Regulation establishes a framework for strengthening the semiconductor sector at Union level, in particular through the following measures:

- establishment of the Chips for Europe Initiative ;

- setting the criteria to recognise and to support first-of-a-kind Integrated Production Facilities, Open EU Foundries and first-of-a-kind facilities that foster the security of supply and the resilience of the semiconductor ecosystem and deployment of novel and innovative semiconductor technologies in the Union;

- setting up a coordination mechanism between the Member States and the Commission, for mapping and monitoring the semiconductor value chain and, where relevant, consulting stakeholders from the semiconductor supply and value chain as well as stakeholders from critical sectors that might be affected by disruptions to the supply of semiconductors;

- developing crisis prevention and response tools in the semiconductor supply chain shortages with a view to ensuring the internal market’s resilience and enabling the Union to play a stronger role at the global level.

Components and objectives of the Initiative

The general objective of the Initiative is to increase the competitiveness and resilience of the Union's semiconductor ecosystem by supporting technological capacity building research and innovation throughout the Union’s semiconductor supply and value chain and by enabling the development and deployment of cutting-edge and next generation semiconductor and semiconductor technologies for quantum chips and the development and innovation of established technologies. This is intended to reinforce the Union’s advanced design, systems integration and chips production capabilities, packaging, and manufacturing equipment as well as to contribute to achieving the twin digital and green transition, to improve quality employment, while strengthening the sustainability circular economy processes and addressing security needs and cybersecurity threats.

The Initiative should have five operational objectives :

- operational objective 1 : building up advanced design capacities for integrated semiconductor technologies;

- operational objective 2 : enhancing existing and developing new advanced pilot lines while ensuring geographical balance;

- operational objective 3 : building advanced technology and engineering capacities for accelerating the innovative development of cutting-edge and next generation quantum chips;

- operational objective 4 : creating a network of competence centres across the Union;

- operational objective 5 : undertaking activities, to be described collectively as ‘Chips Fund’ activities that ensure clear guidance and facilitate access to debt financing and equity by start-ups, scale-ups, and SMEs and other companies in the semiconductor value chain, through a blending facility under the InvestEU Fund and via the European Innovation Council.

European Chips Infrastructure Consortium

With a view to creating a pan-European ecosystem within the internal market where knowledge, expertise, resources and existing strengths are pooled and to accelerating implementation of the actions of the Initiative, it is necessary to provide an option of implementing some of the Initiative actions, in particular on pilot lines, through a new legal instrument, the European Chips Infrastructure Consortium (ECIC). Members proposed that the ECIC should be set up by at least three members, comprising Member States, public or private legal entities from at least three Member States, or a combination thereof, ensuring the geographically balanced representation.

Long-term strategic mapping and monitoring

The report suggested that the Commission should carry out a long-term strategic mapping of the Union’s semiconductor value chain in cooperation with the national competent authorities, with the aim of identifying early warning indicators , of building knowledge and capacity to inform future industrial policy measures and assess the Union’s strengths and weaknesses in the global semiconductor value chain. A coordinated approach to monitoring of the semiconductor value chains is needed to mitigate possible market disruptions.

International cooperation

According to Members, international cooperation with third countries is an important element to achieve a resilience of the Union’s semiconductor ecosystem. Therefore, the Commission should pursue cooperation with relevant third countries on mutual support and benefits in the field of semiconductor supply, building on complementarities and interdependencies along the semiconductor supply chain, in accordance with international obligations.

New budget resources

The report stated that the amount of the financial resources dedicated to the Chips initiative should be drawn from the unallocated margins under the Multiannual Financial Framework (MFF) ceilings or mobilised through the non-thematic MFF special instruments. EUR 1.65 billion for the initiative under the Digital Europe Programme should be additional to the funding of existing objectives and should not reduce their financial envelope: the allocation of funds to the first five specific objectives should therefore be maintained, while an additional EUR 1.65 billion should be allocated to a new specific objective for the initiative.

Documents
2023/01/24
   EP - Vote in committee, 1st reading
2023/01/24
   EP - Committee decision to open interinstitutional negotiations with report adopted in committee
2022/12/14
   EP - Committee opinion
Documents
2022/12/05
   EP - Committee opinion
Documents
2022/12/01
   EP - Committee opinion
Documents
2022/11/18
   EP - Committee opinion
Documents
2022/11/15
   EP - Committee opinion
Documents
2022/10/18
   EP - Amendments tabled in committee
Documents
2022/10/18
   EP - Amendments tabled in committee
Documents
2022/10/18
   EP - Amendments tabled in committee
Documents
2022/10/12
   CofR - Committee of the Regions: opinion
Documents
2022/09/19
   EP - Committee draft report
Documents
2022/07/13
   EP - WÖLKEN Tiemo (S&D) appointed as rapporteur in JURI
2022/07/07
   EP - Referral to associated committees announced in Parliament
2022/06/15
   ESC - Economic and Social Committee: opinion, report
Documents
2022/05/24
   CZ_SENATE - Contribution
Documents
2022/05/16
   EP - BOURGEOIS Geert (ECR) appointed as rapporteur in INTA
2022/03/31
   EP - LEITÃO-MARQUES Maria-Manuel (S&D) appointed as rapporteur in IMCO
2022/03/29
   EP - NICA Dan (S&D) appointed as rapporteur in ITRE
2022/03/11
   EP - RESSLER Karlo (EPP) appointed as rapporteur in BUDG
2022/03/07
   EP - Committee referral announced in Parliament, 1st reading
2022/03/03
   EP - MAYDELL Eva (EPP) appointed as rapporteur in ECON
2022/02/09
   EC - Legislative proposal published
Details

PURPOSE: to establish a framework of measures for strengthening the semiconductor ecosystem in the Union (Chips Act).

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: within the past year, Europe has witnessed disruptions in the supply of chips, causing shortages across multiple economic sectors and potentially serious societal consequences. Many European sectors, including automotive, energy, communication and health as well as strategic sectors such as defence, security, and space are under threat by such supply disruptions.

The current supply shortage is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The global semiconductor shortage has exposed European dependency on supply from a limited number of companies and geographies, and its vulnerability to third country export restrictions and other disruptions in the present geopolitical context.

The proposal aims at reaching the strategic objective of increasing the resilience of Europe’s semiconductor ecosystem and increasing its global market share . It also aims at facilitating early adoption of new chips by European industry and increasing its competitiveness.

The European Chips Strategy is articulated around five strategic objectives. Europe should:

(1) strengthen its research and technology leadership;

(2) build and reinforce its own capacity to innovate in the design, manufacturing and packaging of advanced chips, and turn them into commercial products;

(3) put in place an adequate framework to increase substantially its production capacity by 2030;

(4) address the acute skills shortage, attract new talent and support the emergence of a skilled workforce;

(5) develop an in-depth understanding of global semiconductor supply chains.

CONTENT: the proposed Regulation establishes a framework for strengthening the semiconductor sector at EU level , including the following measures:

(1) Set up the Chips for Europe Initiative which is designed to strengthen the Union's competitiveness, resilience and innovation capacity. This initiative aims to support large-scale technological capacity building across the Union in existing, advanced and new generation semiconductor technologies. The initiative will:

- set up an innovative virtual design platform to strengthen Europe's design capacity, which will be accessible under open, non-discriminatory and transparent conditions;

- support pilot lines that provide third parties with the means to test, validate and further develop the products they design under open, transparent and non-discriminatory conditions;

- contribute to the development of advanced technologies and engineering capacities to accelerate the innovative development of quantum chips;

- support a network of competence centres across the EU that will provide expertise to stakeholders and improve their skills;

- support the activities of the Chips Fund which will facilitate access to finance for start-ups to help them mature their innovations and attract investors.

The Regulation provides for a procedural framework to facilitate combined funding from Member States, investment without prejudice with State aid rules, the Union budget and private investment.

(2) A new framework to ensure security of supply : to attract investment and enhance production capacity in semiconductor manufacturing, advanced packaging, testing and assembly via first-of-a-kind integrated production facilities and open EU Foundries.

In particular, the proposal sets out criteria to facilitate the implementation of specific projects that contribute to the security of supply of semiconductors in the Union. Facilities that are recognised by the Commission as EU integrated production facilities or EU open foundries will be considered as contributing to the security of supply of semiconductors in the Union and thus as serving the public interest.

(3) The establishment of a coordination mechanism between Member States and the Commission for monitoring semiconductor supply and responding to crisis situations in the event of semiconductor shortages.

This mechanism will strengthen collaboration with and across Member States, monitor the supply of semiconductors, estimate demand, anticipate shortages, trigger the activation of a crisis stage and act through a dedicated toolbox of measures.

Budgetary impact

The EU budget will support the Chips for Europe initiative with a total amount of up to EUR 3.3 billion , of which EUR 1.65 billion through the Horizon Europe programme and EUR 1.65 billion through the Digital Europe programme . Of this total, EUR 2.875 billion will be implemented through the Chips Joint Undertaking, EUR 125 million through InvestEU and EUR 300 million through the Connecting Europe Facility (CEF).

Documents

Activities

Votes

Règlement sur les semi-conducteurs - A9-0014/2023 - Dan Nica - Accord provisoire - Am 2 #

2023/07/11 Outcome: +: 587, 0: 38, -: 10
DE FR IT PL ES RO NL CZ BE AT SE HU PT BG EL DK FI HR SK IE LT SI LV EE MT CY LU
Total
94
74
65
46
47
28
25
21
20
19
21
16
21
14
15
13
14
11
13
13
8
8
7
6
5
6
5
icon: PPE PPE
161

Hungary PPE

1

Denmark PPE

For (1)

1

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2

Estonia PPE

For (1)

1

Malta PPE

For (1)

1

Cyprus PPE

2

Luxembourg PPE

2
icon: S&D S&D
125

Czechia S&D

For (1)

1

Belgium S&D

2

Hungary S&D

2

Greece S&D

1

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2

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1

Slovenia S&D

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Poland Renew

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3

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2

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2

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3

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1
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Italy Verts/ALE

3

Poland Verts/ALE

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1

Spain Verts/ALE

3

Romania Verts/ALE

1

Netherlands Verts/ALE

3

Czechia Verts/ALE

3

Belgium Verts/ALE

3

Austria Verts/ALE

3

Sweden Verts/ALE

3

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1

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1
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57

Germany ECR

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2
3

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35

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3

France NI

2

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Cyprus The Left

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AmendmentsDossier
1566 2022/0032(COD)
2022/09/12 ECON 148 amendments...
source: 732.641
2022/09/19 IMCO 178 amendments...
source: 735.486
2022/10/18 INTA 266 amendments...
source: 737.312
2022/10/19 ITRE 688 amendments...