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Progress: Awaiting Parliament's position in 1st reading
Lead committee dossier:
Legal Basis:
RoP 57, TFEU 114, TFEU 173-p3, TFEU 182-p1, TFEU 183
Legal Basis:
RoP 57, TFEU 114, TFEU 173-p3, TFEU 182-p1, TFEU 183Events
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.
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
- Committee report tabled for plenary, 1st reading: A9-0014/2023
- Committee opinion: PE735.490
- Committee opinion: PE735.744
- Committee opinion: PE736.697
- Committee opinion: PE734.234
- Committee opinion: PE732.593
- Amendments tabled in committee: PE737.266
- Amendments tabled in committee: PE737.348
- Amendments tabled in committee: PE737.359
- Committee draft report: PE731.655
- Economic and Social Committee: opinion, report: CES1354/2022
- Contribution: COM(2022)0046
- Legislative proposal published: COM(2022)0046
- Legislative proposal published: EUR-Lex
- Economic and Social Committee: opinion, report: CES1354/2022
- Committee draft report: PE731.655
- Amendments tabled in committee: PE737.266
- Amendments tabled in committee: PE737.348
- Amendments tabled in committee: PE737.359
- Committee opinion: PE732.593
- Committee opinion: PE734.234
- Committee opinion: PE736.697
- Committee opinion: PE735.744
- Committee opinion: PE735.490
- Contribution: COM(2022)0046
Activities
- Maria da Graça CARVALHO
Plenary Speeches (0)
- Pilar del CASTILLO VERA
Plenary Speeches (0)
- Eva MAYDELL
Plenary Speeches (0)
- Katarína ROTH NEVEĎALOVÁ
Plenary Speeches (0)
- Dan NICA
Plenary Speeches (0)
- Urmas PAET
Plenary Speeches (0)
- Pina PICIERNO
Plenary Speeches (0)
- Sirpa PIETIKÄINEN
Plenary Speeches (0)
- Ivan ŠTEFANEC
Plenary Speeches (0)
- Tiemo WÖLKEN
Plenary Speeches (0)
- Carlos ZORRINHO
Plenary Speeches (0)
- Clare DALY
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- Robert HAJŠEL
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- Marc BOTENGA
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- Henrike HAHN
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- Mauri PEKKARINEN
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- Milan UHRÍK
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- Mick WALLACE
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- Eugen JURZYCA
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- Karlo RESSLER
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- Geert BOURGEOIS
Plenary Speeches (0)
- Niels FUGLSANG
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- Lina GÁLVEZ MUÑOZ
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- Maria-Manuel LEITÃO-MARQUES
Plenary Speeches (0)
- Bart GROOTHUIS
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- Johan NISSINEN
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- Marie DAUCHY
Plenary Speeches (0)
Amendments | Dossier |
148 |
2022/0032(COD)
2022/09/12
ECON
148 amendments...
Amendment 147 #
Proposal for a regulation Recital 2 (2) A framework for increasing the Union’s resilience in the field of semiconductor technologies should be established, stimulating investment, strengthening the capabilities of the Union’s semiconductor supply chain,
Amendment 148 #
Proposal for a regulation Recital 2 a (new) (2 a) An impact assessment for the funding for the establishment of a framework of measures for strengthening Europe's semiconductor ecosystem should be performed, given the difficulties faced by regular citizens in uncertain times as well as the general complexity of EU funds;
Amendment 149 #
Proposal for a regulation Recital 4 (4) It is necessary to take measures to build capacity and strengthen the Union’s semiconductor sector in line with Article 173(3) of the Treaty. These measures do not entail the harmonisation of national laws and regulations. In this regard, the Union should reinforce its strategic autonomy by enhancing the competitiveness and resilience of the semiconductor technological and industrial base, whilst strengthening the innovation capacity of its semiconductor sector, reducing dependence on a limited number of third country companies and geographies, and strengthening its capacity to design and produce advanced components. The Chips for Europe Initiative (the ‘Initiative’) should support these aims by bridging the gap between Europe’s advanced research and innovation capabilities and their sustainable industrial exploitation. It should promote capacity building to enable design, production and systems integration in next generation semiconductor technologies, enhance collaboration among key players across the Union, strengthening Europe's semiconductor supply and value chains,
Amendment 150 #
Proposal for a regulation Recital 6 Amendment 151 #
Proposal for a regulation Recital 9 (9) Member States are primarily responsible for sustaining a strong Union industrial, competitive, sustainable and innovative base. However, the nature and scale of the innovation challenge in the semiconductor sector requires action to be taken collaboratively at Union level. The Union shall also ensure that the sector does not develop monopolistic structures.
Amendment 152 #
Proposal for a regulation Recital 12 (12) In order to achieve its general objective, and address both the supply and demand side challenges of the current semiconductor ecosystem, the Initiative should include five main components. First, to reinforce Europe’s design capacity, the Initiative should support actions to build a virtual platform that is available across the Union. The platform should connect the communities of design houses, SMEs and start-ups, intellectual property and tool suppliers, with research and technology organisations to provide virtual prototype solutions based on co- development of technology. Second, in order to strengthen the security and resilience of supply and reducing the Union’s dependency on third country production, the Initiative should support development and access to pilot lines. The pilot lines should provide for the industry a facility to test, experiment and validate semiconductor technologies and system design concepts at the higher technology readiness levels beyond level 3 but under level 8 while reducing environmental impacts as much as possible. Union investments along Member States investment and with the private sector in pilot lines is necessary to address the existing structural challenge and market failure where such facilities are not available in the Union hindering innovation potential and global competitiveness of the Union. Third, in order to enable investments in alternative technologies, such as quantum technologies, conducive
Amendment 153 #
Proposal for a regulation Recital 12 a (new) (12 a) To foster the emergence of a qualified workforce necessary to support a strengthened European semiconductor ecosystem in all its dimensions, programmes and initiatives to mobilise and attract new talent, including from third countries, as well as to reskill and upskill the existing working force, should be promoted, all while keeping in mind the gender gap in European industries and ensuring decent working conditions. The steps needed to strengthen the connection between the industrial ecosystem, Research & Innovation and the educational system, as well as the educational needs, could be explored jointly with the Alliance on Microprocessors and Semiconductors.
Amendment 154 #
Proposal for a regulation Recital 14 (14) The capital intensity and complexity of the semiconductor industry might lead to underinvestment in strategically relevant sectors. Support from the Initiative should be used to address market failures or sub-
Amendment 155 #
Proposal for a regulation Recital 16 (16) With a view 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). The ECIC should have legal personality. This means that when applying for the actions to be funded by the Initiative, the ECIC itself, and not individual entities forming the ECIC, can be the applicant. The main aim of the ECIC should be to encourage effective and structural collaboration between legal entities, including Research and Technology Organizations. For this reason, the ECIC has to involve the participation of at least three legal entities from three Member States and be operated as a public- private sector consortium for a specific action. The setting up of ECIC should not involve the actual setting up of a new Union body and should not be targeted at one specific action under the Initiative. It should address the gap in the Union’s toolbox to combine funding from Member States, the Union budget and private investment for the purposes of implementing actions of the Initiative. In particular, strong synergies can be attained through combined development of the different pilot lines in an ECIC, pooling the Union’s contribution with the collective resources of the Member States and other participants. The budget of the ECIC that would be made available by Member States and private sector participants over its projected period of operation should respect the timeframes of the actions implemented under this Initiative. The Commission should not be directly a party in the Consortium.
Amendment 156 #
Proposal for a regulation Recital 18 (18) In order to encourage the establishment of the necessary manufacturing and related design capabilities, and thereby ensure the security of supply in the Union, p
Amendment 157 #
Proposal for a regulation Recital 19 (19) Integrated Production Facilities and Open EU Foundries should provide
Amendment 158 #
Proposal for a regulation Recital 21 (21) In order to qualify as Integrated Production Facilities or Open EU Foundries, the establishment and operation of the facility should have a clear positive impact on the semiconductor value chain in the Union, in particular with regard to providing a resilient supply of semiconductors to users on the internal market and its positive impact on the innovation potential of SMEs. The impact on several Member States, including cohesion objectives, should be considered as one of the indicators of a clear positive impact of an Integrated Production Facility and Open
Amendment 159 #
Proposal for a regulation Recital 22 (22) It is important that Integrated Production Facilities and Open EU Foundries are not subject to extraterritorial application of public service obligations imposed by third countries that could undermine their ability to use their infrastructure, software, services, facilities, assets, resources, intellectual property or knowhow needed to fulfil the obligation on priority rated orders under this Regulation
Amendment 160 #
Proposal for a regulation Recital 23 (23) In light of the fast development of semiconductor technologies and to strengthen the future industrial competitiveness of the Union, Integrated Production Facilities and Open EU
Amendment 161 #
Proposal for a regulation Recital 27 (27) The internal market would greatly benefit from common standards for
Amendment 162 #
Proposal for a regulation Recital 28 (28) In light of this, the Commission, in
Amendment 163 #
Proposal for a regulation Recital 29 (29) In light of the structural
Amendment 164 #
Proposal for a regulation Recital 30 (30) Due to the complex, quickly evolving and interlinked semiconductor value chains with various actors, a coordinated approach to regular monitoring is necessary to increase the ability to mitigate risks that may negatively affect the supply of semiconductors
Amendment 165 #
Proposal for a regulation Recital 30 (30) Due to the complex, quickly evolving and interlinked semiconductor value chains with various actors, a coordinated approach to regular monitoring is necessary to increase the ability to mitigate risks that may negatively affect the supply of semiconductors. Member States in close cooperation with industry stakeholders across the entire semiconductor ecosystem should monitor the semiconductor value chain focusing on early warning indicators and the availability and integrity of the services and goods provided by key market actors, in such a way that it would not represent an excessive administrative burden for undertakings.
Amendment 166 #
Proposal for a regulation Recital 30 a (new) (30 a) Without prejudice to the budgetary procedure, the Commission should dispose of the necessary human, financial and technical resources to effectively conduct the monitoring of the semiconductor supply chain.
Amendment 167 #
Proposal for a regulation Recital 32 a (new) (32 a) The European Semiconductor Board should seek to examine other market forces and events central to the operation of the semiconductor industry, such as energy prices and energy shortages. Where appropriate, recommendations for remedying the situation should be provided, particularly those proposing innovative technological solutions and responses to economic difficulties.
Amendment 168 #
Proposal for a regulation Recital 34 (34)
Amendment 169 #
Proposal for a regulation Recital 35 (35) As part of the monitoring, national competent authorities should also do a mapping of key undertakings operating in the Union along the semiconductor supply chain established in their national territory and notify this information to the Commission.
Amendment 170 #
(37) In order to forecast and prepare for future disruptions of the different stages of the semiconductor value chain in the Union, the Commission should, a
Amendment 171 #
Proposal for a regulation Recital 38 Amendment 172 #
Proposal for a regulation Recital 42 Amendment 173 #
Proposal for a regulation Recital 42 a (new) (42a) Production of and access to semiconductors is a vital issue for the development and industrial future of the European Union. An effort should therefore be made to use them exclusively for strategic development sectors rather than for needlessly semiconductor- intensive activities. In the crypto-asset sector, for example, proof-of-work mining technology, which is extremely energy- and semiconductor-intensive, ought be replaced by what is far more efficient proof-of-stake technology.
Amendment 174 #
Proposal for a regulation Recital 43 Amendment 175 #
Proposal for a regulation Recital 43 (43) In order to ensure an agile and effective response to such a semiconductor crisis, the Commission should be empowered to activate the crisis stage by means of an implementing act
Amendment 176 #
Proposal for a regulation Recital 44 Amendment 177 #
Proposal for a regulation Recital 45 Amendment 178 #
Proposal for a regulation Recital 48 Amendment 179 #
Proposal for a regulation Recital 48 (48) In order to ensure that critical sectors can continue to operate in a time of crisis and when necessary and proportionate for this purpose, Integrated Production Facilities and Open EU Foundries could be obliged by the Commission to accept and prioritise orders of crisis-relevant products.
Amendment 180 #
Amendment 181 #
Proposal for a regulation Recital 49 (49) The
Amendment 182 #
Proposal for a regulation Recital 50 Amendment 183 #
Proposal for a regulation Recital 50 (50) Under the exceptional circumstance that an undertaking operating along the semiconductor supply chain in the Union receives a priority rated order request from a third country, it
Amendment 184 #
Proposal for a regulation Recital 51 (51) In light of the importance to ensure the security of supply to critical sectors that perform vital societal functions, compliance with the obligation to perform a priority rated order should not entail liability for damages towards third parties for any breach of contractual obligations that may result from the necessary temporary changes of the operational processes of the concerned manufacturer, limited to the extent the violation of contractual obligations was necessary for compliance with the mandated prioritisation. Undertakings
Amendment 185 #
(53) When the crisis stage is activated, two or more Member States could mandate the Commission to aggregate demand and act on their behalf for their public procurement in the public interest, in accordance with existing Union rules and procedures, leveraging its purchasing power. The mandate could authorise the Commission to enter into agreements concerning the purchase of crisis-relevant products for
Amendment 186 #
Proposal for a regulation Article 1 – paragraph 1 – point b (b) setting the criteria to recognise and to support first-of-a-kind Integrated Production Facilities and Open EU Foundries that foster the security of supply of semiconductors and the deployment of novel and innovative semiconductor technologies in the Union;
Amendment 187 #
Proposal for a regulation Article 1 – paragraph 1 – point c Amendment 188 #
Proposal for a regulation Article 2 – paragraph 1 – point 10 (10) ‘first-of-a-kind facility’ means an industrial facility capable of semiconductor manufacturing, including front-end or back-end, or both, that is not substantively already present or committed to be built within the Union, for instance with regard to
Amendment 189 #
Proposal for a regulation Article 2 – paragraph 1 – point 10 (10) ‘first-of-a-kind facility’ means a
Amendment 190 #
Proposal for a regulation Article 2 – paragraph 1 – point 13 (13) ‘back-end’ means the
Amendment 191 #
Proposal for a regulation Article 2 – paragraph 1 – point 16 (16) ‘critical sector’ means any sector
Amendment 192 #
Proposal for a regulation Article 2 – paragraph 1 – point 16 (16) ‘critical sector’ means any sector referred to in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities,
Amendment 193 #
Proposal for a regulation Article 2 – paragraph 1 – point 16 a (new) (16 a) ‘semiconductor crisis’ means the existence of serious disruptions in the semiconductor supply chain, leading to significant shortages of semiconductors, intermediate products or raw and processed materials, at any link of the semiconductor value chain, which prevent the supply, repair and maintenance of essential products of the semiconductor supply chain itself to the extent that it affects the normal functioning of critical sectors;
Amendment 194 #
Proposal for a regulation Article 2 – paragraph 1 – point 17 (17) ‘crisis-relevant product’ means semiconductors, intermediate products and raw materials required to produce semiconductors or intermediate products, as well as services that are affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereof;
Amendment 195 #
Proposal for a regulation Article 3 – paragraph 2 2. The Initiative, amongst others, shall be supported by funding from the Horizon Europe programme and the Digital Europe programme, and in particular Specific Objective 6 thereof, for a maximum indicative amount of EUR 1.65 billion and EUR 1.65 billion respectively. This funding shall be implemented in accordance with Regulation (EU) No 2021/695 and Regulation (EU) No 2021/694.
Amendment 196 #
Proposal for a regulation Article 4 – paragraph 1 1. The general objective of the Initiative is to support large-scale technological capacity building and innovation throughout the Union to enable development and deployment of cutting- edge and next generation semiconductor and quantum technologies that will reinforce the Union advanced design, systems integration and chips production capabilities, as well as contribute to the achievement of the
Amendment 197 #
Proposal for a regulation Article 4 – paragraph 1 1. The general objective of the Initiative is to support large-scale technological capacity building and innovation throughout the Union to enable development and deployment of cutting- edge and next generation semiconductor and quantum technologies that will reinforce the Union advanced design, systems integration and chips production capabilities in order to ensure security of supply, as well as contribute to the achievement of
Amendment 198 #
Proposal for a regulation Article 4 – paragraph 1 1. The general objective of the Initiative is to support large-scale technological capacity building and innovation throughout the Union to enable development and deployment of cutting- edge and next generation semiconductor and quantum technologies that will reinforce the Union advanced design, systems integration and chips production capabilities, as well as contribute to the
Amendment 199 #
Proposal for a regulation Article 4 – paragraph 2 – point b – point 3 (3) providing support to Integrated Production Facilities and Open EU Foundries through the possibility of priority access to the new pilot lines.
Amendment 200 #
Proposal for a regulation Article 4 – paragraph 2 – point d – introductory part (d) creating a network of competence centres across the Union, by creating new or enhancing existing facilities, in order to
Amendment 201 #
Proposal for a regulation Article 4 – paragraph 2 – point d – point 2 (2) address the skills shortage,
Amendment 202 #
Proposal for a regulation Article 4 – paragraph 2 – point d – point 2 (2) address the skills shortage, attracting and mobilising new talent and supporting the emergence of a suitably skilled workforce for strengthening the semiconductor sector, including via reskilling and upskilling of workers, and via providing incentives to workers to address and overcome challenges regarding the acquisition and retention of talent.
Amendment 203 #
Proposal for a regulation Article 4 – paragraph 2 – point e – point 1 a (new) Amendment 204 #
Proposal for a regulation Article 4 – paragraph 2 – point e – point 2 (2) providing support to companies facing difficulties in accessing finance, in particular by implementing special support schemes for companies self- managed by workers, and addressing the need to underpin the economic resilience of the Union and its Member States;
Amendment 205 #
Proposal for a regulation Article 4 – paragraph 2 – point e a (new) (e a) contributing to the development of an economy based on the principle of zero-emissions and zero-waste.That operational objective shall be achieved through: (1) favouring companies that are committed to the objective of developing zero-emissions and zero-waste production or services, as far as practicable, in any support scheme provided for by the Union or Member States under this Initiative; (2) linking a commitment to the objective of developing zero-emissions and zero- waste production or services, as far as practicable, as a precondition to private companies for receiving any kind of support provided for by the Union or Member States under this Initiative, including for the operation of Integrated Production Facilities and EU Open Foundries; (3) directing the supply of semiconductor chips towards the demand of industries or companies that, given the technological and organizational limitations, are committed to the principle of zero- emissions and zero-waste production or services; (4) including well-established civil society organisations dedicated to environmental protection in the decision-making processes of any governing body established to implement this Regulation, including the European Chips Infrastructure Consortium, with powers equal to any other party involved in those processes with distinctive interests as private companies and labour organisations or their representatives.
Amendment 206 #
Proposal for a regulation Article 4 – paragraph 2 – point e b (new) (e b) contributing to the development of a social and democratic economy.That operational objective shall be achieved through: (1) linking a commitment to the highest standards for employment protection, working conditions and labour rights, including equal representation and participation rights for workers in all strategic decisions, as a precondition to private companies for receiving any kind of support provided for by the Union or Member States under this Initiative, including for the operation of Integrated Production Facilities and EU Open Foundries; (2) including labour organisations or labour representatives in the decision- making processes of any governing body established to implement this Regulation, including the European Chips Infrastructure Consortium and the European Semiconductor Board, with powers equal to any other party involved in those processes with distinctive interests as private companies, or their representatives, and civil society organisations.
Amendment 207 #
Proposal for a regulation Article 7 – paragraph 2 – point c (c) consist of at least three legal entities from at least three Member States and be operated as a public-private sector consortium with the participation on equal terms of the Member States,
Amendment 208 #
Proposal for a regulation Article 7 – paragraph 3 – point a (a) a request to the Commission to set up the ECIC, including a list of the proposed legal entities, trade unions, works councils and civil society organisations, equally represented on the list, that are forming the ECIC consortium;
Amendment 209 #
Proposal for a regulation Article 7 – paragraph 3 – point b (b) the draft Statutes of the ECIC that shall include at least the provisions on: the procedure for setting-up, membership, budget, legal seat, applicable law and jurisdiction, ownership of the results, governance, including decision making procedure ensuring equal representation and participation between private entities, workers' organisations and civil society organisations, and specific role and if applicable voting rights of Member States and the Commission, winding-up, reporting and liability.
Amendment 210 #
Proposal for a regulation Article 7 – paragraph 4 – point f a (new) (f a) equal representation and participation of private entities, workers' organisations and civil society organisations dedicated to the protection of the environment.
Amendment 211 #
Proposal for a regulation Article 7 – paragraph 4 – point f a (new) (f a) the composition of the ECIC with regard to facilitating contributions of SMEs.
Amendment 212 #
Proposal for a regulation Article 7 – paragraph 4 – point f a (new) (f a) the threat that ECIC would pose to a competitive market.
Amendment 213 #
Proposal for a regulation Article 8 – paragraph 1 1. For the purpose of implementing actions under the Initiative’s component referred to in Article 5, point (d), a European network of competence centres in semiconductors (the ‘network’)
Amendment 214 #
Proposal for a regulation Article 8 – paragraph 2 – point e (e) developing and managing specific training actions on semiconductor technologies to support the development of the talent pool in the Union, including targeted programmes to support the skills development of the existing workforce.
Amendment 215 #
Proposal for a regulation Article 8 – paragraph 3 a (new) 3 a. Member States shall ensure that the workforce is provided with the highest standards of employment protection and social security during the participation in training measures, including targeted support schemes where appropriate.
Amendment 216 #
Proposal for a regulation Article 10 – paragraph 1 1. Integrated Production Facilities are
Amendment 217 #
Proposal for a regulation Article 10 – paragraph 1 1. Integrated Production Facilities are first-of-a-kind semiconductor design and manufacturing facilities, including front- end or back-end, or both, in the Union that contribute to the security of supply for the internal market and, where appropriate, the global market.
Amendment 218 #
Proposal for a regulation Article 10 – paragraph 2 – point a Amendment 219 #
Proposal for a regulation Article 10 – paragraph 2 – point b (b) its establishment and operation have a clear positive impact on the Union’s semiconductor value chain
Amendment 220 #
Proposal for a regulation Article 10 – paragraph 2 – point b a (new) (b a) its establishment and operations strengthen the semiconductor value chains in the Union as a whole, while promoting the participation of all Member States, leveraging it towards convergent and complementary approaches, particularly with regard to regions facing permanent natural disadvantages, such as peripheral, remote and insular regions;
Amendment 221 #
Proposal for a regulation Article 10 – paragraph 2 – point c (c) it guarantees not to be subject to the extraterritorial application of public service obligations of third countries in a way that may undermine the undertaking’s ability to comply with the obligations set out in Article 21(1) and commits to inform the Commission when such obligation arises; the European Semiconductor Board and the Commission shall enter into intergovernmental dialogue and consultation through the structures of the European Semiconductor Board in order to facilitate a resolution of any conflicts of interest or inconsistencies within existing contractual obligations.
Amendment 222 #
Proposal for a regulation Article 10 – paragraph 2 – point d (d) it commits to invest in the next generation of chips and in projects that are highly ambitious, aimed at developing technologies and processes that go beyond current technology and allow for major improvements in performance, safety and security, in line with the needs and aims of the Union's digital transformation, giving due consideration to ongoing and planned R&D&I activities and projects.
Amendment 223 #
Proposal for a regulation Article 10 – paragraph 2 – point d a (new) (d a) it commits to the objective of developing zero-waste and zero-emissions production as far as practicable given technological and organisational possibilities;
Amendment 224 #
Proposal for a regulation Article 10 – paragraph 2 – point d a (new) (d a) it commits to invest in talent and skills development, and to respect applicable Union labour law.
Amendment 225 #
Proposal for a regulation Article 10 – paragraph 2 – point d b (new) (d b) it operates with the highest standards regarding labour rights and working conditions, including full respect for the workers' right of collective action and bargaining.
Amendment 226 #
Proposal for a regulation Article 10 – paragraph 2 – point d c (new) (d c) it operates on the basis of the principle of codetermination granting labour representatives equal decision- making power and the right to veto all strategic decisions, including investment decisions.
Amendment 227 #
Proposal for a regulation Article 10 – paragraph 2 a (new) 2 a. The Commission shall issue guidance for the purpose of assessing the positive impact referred to in paragraph 2, point (b), notably with regard to ensuring the security of supply and increasing a qualified workforce, the innovation potential of SMEs, the impact on several Member States, including cohesion objectives, and its contribution to the green transition.
Amendment 228 #
Proposal for a regulation Article 10 – paragraph 3 3. For the purpose of investing in the next generation of chips according to paragraph 2, point (d), the Integrated Production Facility shall have pr
Amendment 229 #
Proposal for a regulation Article 10 – paragraph 3 3. For the purpose of investing in the next generation of chips according to paragraph 2, point (d), the Integrated Production Facility
Amendment 230 #
Proposal for a regulation Article 11 – paragraph 1 1. Open EU Foundries are
Amendment 231 #
Proposal for a regulation Article 11 – paragraph 1 1. Open EU Foundries are first-of-a- kind semiconductor front-end or back-end, or both, manufacturing facilities in the Union that offer production capacity to unrelated undertakings and thereby contribute to the security of supply for the internal market and, where appropriate, the global market.
Amendment 232 #
Proposal for a regulation Article 11 – paragraph 2 – point a Amendment 233 #
Proposal for a regulation Article 11 – paragraph 2 – point b (b) its establishment and operation have a clear positive impact on the Union’s semiconductor value chain
Amendment 234 #
Proposal for a regulation Article 11 – paragraph 2 – point d a (new) (d a) it commits to the objective of developing zero-waste and zero-emissions production as far as practicable given technological and organisational possibilities;
Amendment 235 #
Proposal for a regulation Article 11 – paragraph 2 – point d a (new) (d a) it commits to invest in talents and skills development, and respect applicable Union labour law.
Amendment 236 #
Proposal for a regulation Article 11 – paragraph 2 – point d b (new) (d b) it operates with the highest standards regarding labour rights and working conditions including full respect for the workers' right of collective action and bargaining.
Amendment 237 #
Proposal for a regulation Article 11 – paragraph 2 – point d c (new) (d c) it operates on the basis of the principle of codetermination granting labour representatives equal decision- making power and the right to veto all strategic decisions, including investment decisions.
Amendment 238 #
Proposal for a regulation Article 11 – paragraph 2 a (new) Amendment 239 #
Proposal for a regulation Article 11 – paragraph 4 4. For the purpose of investing in the next generation of chips according to paragraph 2, point (d), the Open EU Foundry shall have pr
Amendment 240 #
Proposal for a regulation Article 11 – paragraph 4 4. For the purpose of investing in the next generation of chips according to paragraph 2, point (d), the Open EU Foundry
Amendment 241 #
Proposal for a regulation Article 12 – paragraph 2 a (new) 2 a. The Commission shall favour applications that are conducive to a more even economic development in the Union, in particular applications that are beneficial to regions affected by deindustrialisation, underemployment or outward migration.
Amendment 242 #
Proposal for a regulation Article 13 – paragraph 2 2. In order to reach security of supply in the Union, Member States may, without prejudice to Articles 107 and 108 of the Treaty, apply support schemes and provide for administrative support to Integrated Production Facilities and Open EU Foundries in accordance with Article 14. Support schemes shall be used to fill possible funding gaps in the semiconductor ecosystem and shall be necessary, appropriate and proportionate, without undue competition distortions, without duplicating or crowding out private investments, and its benefits shall be shared widely and without discrimination across the Union’s economy.
Amendment 243 #
Proposal for a regulation Article 13 – paragraph 2 2. In order to reach security of supply in the Union, Member States may, without prejudice to Articles 107 and 108 of the Treaty, apply support schemes and provide for administrative support to Integrated Production Facilities and Open EU Foundries in accordance with Article 14. Member States should be able to provide State aid equal to that provided by third countries in the chip production and in the supply chain. All State aid financing initiatives in this field shall be deducted from the deficit calculation.
Amendment 244 #
Proposal for a regulation Article 13 – paragraph 2 a (new) 2 a. An Integrated Production Facility or an Open EU Foundry shall be publicly owned by the local authorities of the region in which it is located, and those local authorities shall have voting rights in all strategic decisions in proportion to the share of direct public funding provided to the Integrated Production Facility or Open EU Foundry in the form of grants or equity investment.
Amendment 245 #
Proposal for a regulation Article 13 – paragraph 2 a (new) 2 a. European structural funds may be used to co-finance initiatives authorised under the Chips Act Regulation, and the Member States' part of the co-financing shall be deducted from the deficit calculation.
Amendment 246 #
Proposal for a regulation Article 13 – paragraph 2 a (new) 2 a. The Commission shall issue clear guidance on assessing the funding gap with a view to allowing a uniform and fact-based assessment of applications by national competent authorities.
Amendment 247 #
Proposal for a regulation Article 13 – paragraph 2 b (new) 2 b. In order to ensure that the public interest is protected, the Commission or any Member State involved is empowered to veto strategic decisions of an Integrated Production Facility or an Open EU Foundry that may have a substantial negative impact for local communities or the natural environment, including geographical relocation plans, if it was supported significantly with resources from the Union or a Member State.
Amendment 248 #
Proposal for a regulation Article 14 – paragraph 1 1. Member States shall 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 shall
Amendment 249 #
Proposal for a regulation Article 14 – paragraph 2 a (new) 2 a. Through the European Semiconductor Board and in cooperation with the Commission, Member States may seek to give recommendations to establish minimum restrictions by public authorities at a national level.
Amendment 250 #
Proposal for a regulation Article 14 – paragraph 3 3. The
Amendment 251 #
Proposal for a regulation Article 15 – paragraph 1 – subparagraph 1 – introductory part Amendment 252 #
Proposal for a regulation Article 15 – paragraph 1 – subparagraph 2 Amendment 253 #
Proposal for a regulation Article 15 – paragraph 2 2.
Amendment 254 #
Proposal for a regulation Article 15 – paragraph 2 2. Member States shall
Amendment 255 #
Proposal for a regulation Article 15 – paragraph 2 a (new) 2 a. In addition, the Commission and Member States in collaboration with third countries and international partners, shall incentivise the end-customer industries to increase the transparency of their supply chain with the semiconductor industry to anticipate and prevent chip shortages.
Amendment 256 #
Proposal for a regulation Article 15 – paragraph 5 Amendment 257 #
Proposal for a regulation Article 15 – paragraph 6 Amendment 258 #
Proposal for a regulation Article 15 – paragraph 7 Amendment 259 #
Proposal for a regulation Article 16 – paragraph 1 1. The Commission shall, after consulting the European Semiconductor Board and relevant industry stakeholders, assess risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment)
Amendment 260 #
Proposal for a regulation Article 16 – paragraph 2 2. The Commission shall, on its own initiative or at the request of the European Semiconductor Board, review
Amendment 261 #
Proposal for a regulation Article 17 Amendment 263 #
Proposal for a regulation Article 18 – paragraph 1 – introductory part 1. A semiconductor crisis shall be considered to occur when there are serious disruptions in the s
Amendment 264 #
Proposal for a regulation Article 18 – paragraph 1 – point a Amendment 265 #
Proposal for a regulation Article 18 – paragraph 1 – point b Amendment 266 #
Proposal for a regulation Article 18 – paragraph 2 a (new) 2 a. After triggering the crisis stage, the Commission and the European Semiconductor Board shall prepare a report, which transparently details the factors leading to the activation of the crisis stage. That report shall be submitted to the European Parliament.
Amendment 267 #
Proposal for a regulation Article 19 – paragraph 1 1. Where the crisis stage is activated and where appropriate in order to address the semiconductor crisis in the Union, the Commission shall take the measure provided for in Article 20 under the conditions laid down therein. In addition, the Commission may take the measures provided for in Article 21 or Article 22, or both, under the conditions laid down therein. When taking those measures, the Commission should duly consider the potential negative impacts on international partners.
Amendment 268 #
Proposal for a regulation Article 19 – paragraph 2 2.
Amendment 269 #
Proposal for a regulation Article 19 – paragraph 4 4. The use of the measures referred to in paragraph 1 shall be proportionate and restricted to what is necessary for addressing serious disruptions of vital societal functions or economic activities in the Union and must be in the best interest of the Union. The use of these measures shall avoid adversely affecting workers and placing disproportionate administrative burden on SMEs..
Amendment 270 #
Proposal for a regulation Article 21 – paragraph 1 1. Where necessary and proportionate to ensure the operation of all or certain critical sectors, the Commission may oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of crisis-relevant products (‘priority rated order’).
Amendment 271 #
Proposal for a regulation Article 21 – paragraph 2 2. The obligation under paragraph 1 can also be imposed to other semiconductor undertakings
Amendment 272 #
Proposal for a regulation Article 21 – paragraph 3 3. When a semiconductor undertaking established in the Union is subject to a third country priority rated order measure, it
Amendment 273 #
Proposal for a regulation Article 21 – paragraph 4 4. The obligations under paragraph 1, 2 and 3 shall be enacted by the Commission via
Amendment 274 #
Proposal for a regulation Article 21 – paragraph 5 – introductory part 5. The undertaking concerned
Amendment 275 #
Proposal for a regulation Article 21 – paragraph 5 – introductory part 5. The undertaking concerned shall be obliged to accept and prioritise a priority rated order. The undertaking or its works council may request the Commission to review the priority rated order where it considers it to be duly justified based on one of the following grounds:
Amendment 276 #
Proposal for a regulation Article 21 – paragraph 5 – point a (a) if the undertaking is unable to perform the priority rated order on account of insufficient production capability or production capacity
Amendment 277 #
Proposal for a regulation Article 21 – paragraph 5 – point b (b) if acceptance of the order would place an unreasonable
Amendment 278 #
Proposal for a regulation Article 21 – paragraph 5 – point b (b) if acceptance of the order would place an unreasonable economic burden and entail particular hardship for the undertaking or its employees.
Amendment 279 #
Proposal for a regulation Article 21 – paragraph 6 6. Where an undertaking
Amendment 280 #
Proposal for a regulation Article 22 – paragraph 1 1. The Commission may, upon the request of two or more Member States, establish a mandate to act as a central purchasing body on behalf of the participating Member States (‘participating Member States’) for their public procurement of crisis-relevant products for
Amendment 281 #
Proposal for a regulation Article 22 – paragraph 3 3. The Commission shall draw up a proposal for a framework agreement to be signed by the participating Member States. This framework agreement shall
Amendment 282 #
Proposal for a regulation Article 22 – paragraph 4 4. Procurement under this Regulation shall be carried out by the Commission in accordance with the rules set out in the Financial Regulation
Amendment 283 #
Proposal for a regulation Article 22 – paragraph 6 a (new) 6 a. The details of the procurement procedures, of the negotiations with the economic operators, including individual producers, and of the concluded contracts shall be made public by the Commission.
Amendment 285 #
Proposal for a regulation Article 24 – paragraph 1 1. The European Semiconductor Board shall be composed on equal terms of representatives of the Member States
Amendment 286 #
Proposal for a regulation Article 24 – paragraph 4 4. The Commission may establish standing or temporary sub-groups for the purpose of examining specific questions. Where appropriate, the Commission may invite organisations representing the
Amendment 287 #
Proposal for a regulation Article 25 – paragraph 4 4. The Commission
Amendment 288 #
Proposal for a regulation Article 26 – paragraph 2 2. Where a Member State
Amendment 289 #
Proposal for a regulation Article 27 – paragraph 1 1. The Commission and the national competent authorities, their officials, servants and other persons working under the supervision of these authorities as well as officials and civil servants of other authorities of the Member States shall not disclose information acquired or exchanged by them pursuant to this Regulation and of the kind covered by the obligation of professional secrecy. They shall at all times respect the confidentiality of information and data obtained in carrying
Amendment 290 #
Proposal for a regulation Article 27 – paragraph 2 2. The Commission and Member States may exchange, where necessary, confidential information with competent authorities of third countries with which they have agreed on bilateral or multilateral confidentiality arrangements to provide
Amendment 291 #
Proposal for a regulation Article 28 – paragraph 2 2. Fines imposed in the cases referred to in paragraph 1 (a) and (b) shall not exceed
Amendment 292 #
Proposal for a regulation Article 28 – paragraph 3 3. Periodic penalty payments imposed in the cases referred to in paragraph 1 (c) shall not exceed 1
Amendment 293 #
Proposal for a regulation Article 30 – paragraph 1 1. The power of the Commission to enforce decisions taken pursuant to Article 28 shall be subject to a limitation period of t
Amendment 294 #
Proposal for a regulation Article 35 – paragraph 1 1. By three years after the date of application of this Regulation and every four years thereafter, the Commission shall
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