2022/0032(COD) | [ParlTrack]

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, ~~and~~ increasing cooperation among the Member States and the Commission, as well as between the EU and like-minded democracies, and strengthening cooperation between the European semiconductor industry and international partners, so as to develop a competitive and sovereign industrial strategy in semiconductor production to decrease the EU's reliance on third countries and prevent future crises and shortages.

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 #

Marc ANGEL, Alfred SANT, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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, ~~serving key industrial sector~~and support the reinforcement and development of skills and a qualified workforce, serving key societal objectives and creating new markets.

Amendment 150 #

Engin EROGLU, Linea SØGAARD-LIDELL

Proposal for a regulation
Recital 6

(6) The achievement of these objectives will be supported by a governance mechanism. At Union level, this Regulation establishes a European Semiconductor Board, composed of representatives of the Member States and chaired by the Commission. The European Semiconductor Board will provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and exchanging information on issues relating to this Regulation. The European Semiconductor Board should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high-level representatives and the Commission may establish subgroups.deleted

Amendment 151 #

Proposal for a regulation
Recital 9

Amendment 152 #

Marc ANGEL, Alfred SANT, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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 to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. These competence centres should provide a range of services to semiconductor stakeholders, with a particular focus on start-ups and SMEs, and represent an important vector for the development of skills. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross- fertilisation and gains in know-how and excellence, while contributing to cost recovery. Each competence centre should be an entry point to connect to other competence centres of the network. Synergies with existing structures with similar objectives, such as European Digital Innovation Hubs, should be encouraged. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. While the Initiative is established for the duration of the MFF 2021-2027, due consideration should be given to supporting the EU’s semiconductor ecosystem in the future as the strengthening of the EU’s semiconductor ecosystem will require a long-term and sustained effort. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

Amendment 153 #

Marc ANGEL, Alfred SANT, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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- optimal investment situations in a proportionate manner, and actions should not duplicate or crowd out private financing or distort competition in the internal market. All actions should have a clear added value for the Union and be subject to strong competition safeguards to prevent market distortions.

Amendment 155 #

Marc ANGEL, Elisabetta GUALMINI, Jonás FERNÁNDEZ, Eva KAILI

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. With a view to ensure better involvement of all industrial players in these private-public partnerships, ECICs should seek to have a diverse composition, including the participation of small and medium sized companies.

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~~ublic support may be appropriate~~rivate investment in these facilities will likely require public support. In that respect, it is necessary to set out the criteria for facilitating the implementation of specific projects that contribute to achieving the objectives of this Regulation and distinguish between two types of facilities, namely: Integrated Production Facilities and Open EU Foundries. Strong safeguards should be laid down for these public support schemes to ensure that they are necessary, appropriate and proportionate, without undue competition distortions, and that its benefits will be shared widely and without discrimination across the Union’s economy.

Amendment 157 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

Proposal for a regulation
Recital 19

Amendment 158 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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 EU Foundry on the semiconductor value chain in the Union. They should equally contribute to the reinforcement of a qualified workforce and the green transition. The Commission should issue guidance to assess these positive impacts.

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~~, which they would have to guarantee~~.

Amendment 160 #

Proposal for a regulation
Recital 23

Amendment 161 #

Proposal for a regulation
Recital 27

(27) The internal market would greatly benefit from common standards for ~~green,~~ trusted and secure chips. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. To that end, the Union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact.

Amendment 162 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ

Proposal for a regulation
Recital 28

(28) In light of this, the Commission, in consultation with the European Semiconductor Board, should prepare the ground for a certification of ~~green,~~ trusted and secure chips and embedded systems that rely on or make extensive use of semiconductor technologies. In particular, they should discuss and identify the relevant sectors and products in need of such certification.

Amendment 163 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Eva KAILI

Proposal for a regulation
Recital 29

(29) In light of the structural ~~deficienc~~vulnerabilities of the semiconductor supply chain and the resulting risk of future shortages, this Regulation provides instruments for a coordinated approach to monitoring and effectively tackling possible market disruptions.

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~~. Member Stat~~ to the semiconductor supply chain itself or to critical sectors. The Commission, assisted by national authorities, 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. The Commission should adequately justify its requests for information to the addressed actors of the semiconductor value chain.

Amendment 165 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ

Proposal for a regulation
Recital 30

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) ~~Member States~~Permanent Members of the European Semiconductor Board should alert the Commission if relevant factors indicate a potential semiconductor crisis. In order to ensure a coordinated response to address such crises, the Commission should upon the alert by a Member State or through other sources, including information from international partners, convene an extraordinary meeting of the European Semiconductor Board for assessing the need to activate the crisis stage and for discussing whether it may be appropriate, necessary and proportionate for Member States to carry out coordinated joint procurement. The Commission should engage in consultations and cooperation with relevant third countries with a view to addressing any disruptions in the international supply chain, in compliance with international obligations and without prejudice to procedural requirements under the Treaty on international agreements.

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~~ssisted by~~fter consultation with the European Semiconductor Board and relevant industry stakeholders, identify early warning indicators in the Union risk assessment. These early warning indicators should be used to assess and monitor the availability and integrity of the services and goods provided by the key market actors. Such indicators could include the availability of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. ~~Member States~~The Commission should monitor these early warning indicators. The European Semiconductor Board should be able to request a revision of the early warning indicators from the Commission.

Amendment 171 #

Proposal for a regulation
Recital 38

(38) A number of undertakings providing semiconductor services or goods are assumed to be essential for an effective semiconductor supply chain in the Union’s semiconductor ecosystem, due to the number of Union undertakings relying on their products, their Union or global market share, their importance to ensure a sufficient level of supply or the possible impact of the disruption of supply of their products or services. The Member States should identify those key market actors in their territory.deleted

Amendment 172 #

Aurore LALUCQ, Marc ANGEL

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

(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 acts and for a predetermined duration period, taking into account the opinion of the European Semiconductor Board. The Commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period, should such a necessity be ascertained, taking into account the opinion of the European Semiconductor Board.deleted

Amendment 175 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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 acts with a defined scope and for a predetermined duration period, taking into account the opinion of the European Semiconductor Board. The Commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period, should such a necessity be ascertained, taking into account the opinion of the European Semiconductor Board.

Amendment 176 #

Proposal for a regulation
Recital 44

(44) Close cooperation between the Commission and the Member States and coordination of any national measures taken with regard to the semiconductor supply chain is indispensable during the crisis stage with a view to addressing disruptions with the necessary coherence, resiliency and effectiveness. To this end, the European Semiconductor Board should hold extraordinary meetings as necessary. Any measures taken should be strictly limited to the duration period of the crisis stage.deleted

Amendment 177 #

Proposal for a regulation
Recital 45

(45) Appropriate, effective and proportionate measures should be identified and implemented when the crisis stage is activated without prejudice to possible continued international engagement with relevant partners with the view to mitigating the evolving crisis situation. Where appropriate, the Commission should request information from undertakings along the semiconductor supply chain. Furthermore, the Commission should be able to, where necessary and proportionate, oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of the production of crisis-relevant products, and to act as a central purchasing body when mandated by Member States. The Commission could limit the measures to certain critical sectors. In addition, the European Semiconductor Board may advise on the necessity of introducing an export control regime pursuant to Regulation (EU) 2015/479 of the European Parliament and of the Council60 . The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures should be proportionate and restricted to what is necessary to address the significant disturbances at stake insofar as this is in the best interest of the Union. The Commission should regularly inform the European Parliament and the Council of the measures taken and the underlying reasons. The Commission may, after consulting with the Board, issue further guidance on the implementation and use of the emergency measures. _________________ 60 Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34).deleted

Amendment 178 #

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. This obligation may also be extended to semiconductor manufacturing facilities which have accepted such possibility in the context of receiving public support. The decision on a priority rated order should be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case. The priority rating obligation should take precedence over any performance obligation under private or public law while it should have regard for the legitimate aims of the undertakings and the cost and effort required for any change in production sequence. Undertakings may be subject to penalties if they fail to comply with the obligation for priority rated orders.deleted

Amendment 179 #

Proposal for a regulation
Recital 48

Amendment 180 #

(49) The undertaking concerned should be obliged to accept and prioritise a priority rated order. In exceptional and duly justified cases, the undertaking could request the Commission to review the imposed obligation. This applies either where the facility is unable to fulfil the order even if prioritised, be it due to insufficient production capability or production capacity, or because this would place an unreasonable economic burden and entail particular hardship on the facility.deleted

Amendment 181 #

Proposal for a regulation
Recital 49

(49) The ~~undertaking concerned should be obliged to accept and prioritise a priority rated order. In exceptional and duly justified cases, t~~Commission may choose to oblige an undertaking to prioritise a priority rated order. The undertaking could request the Commission to review the imposed obligation. This applies either where the facility is unable to fulfil the order even if prioritised, be it due to insufficient production capability or ~~production~~ capacity, or because this would place an unreasonable economic burden ~~and entail particular hardship~~ on the facility.

Amendment 182 #

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 should inform the Commission of this request, so as to inform an assessment of whether, if there is a significant impact on the security of supply to critical sectors, and the other requirements of necessity, proportionality and legality are satisfied in the circumstances of the case, the Commission should likewise enact a priority rated order obligation.deleted

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 ~~should~~may inform the Commission of this request~~, so as to inform~~. This may trigger the Commission to undergo an assessment of whether~~, if~~ there is a significant impact on the security of supply to critical sectors, ands well as whether the other requirements of necessity, proportionality and legality are ~~satisfied in the circumstances of the case, the Commission should likewise~~met to enact a priority ~~rated~~ order obligation.

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 ~~potentially within scope of~~falling within the scope of potentially being asked to fulfil a priority rated order should anticipate this possibility in the conditions of their commercial contracts. Without prejudice to the applicability of other provisions, the liability for defective products, as provided for by Council Directive 85/374/EEC of 25 July 198562 , is not affected by this liability exemption. _________________ 62 Council Directive 85/374/EEC of 25 July 1985 on the approximation of the laws, regulations and administrative provisions of the Member States concerning liability for defective products (85/374/EEC) (OJ L 210, 7.8.1985, p. 29).

Amendment 185 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

(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 ~~certain~~the critical sectors identified in the scope of the implementing act triggering the crisis stage. The Commission should assess for each request the utility, necessity and proportionality in consultation with the Board. Where it intends to not follow the request, it should inform the concerned Member States and the Board and give its reasons. Furthermore, the participating Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. The deployment and use of purchased products should remain within the remit of the participating Member States.

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

~~(c) setting up a coordination mechanism between the Member States and the Commission for monitoring the supply of semiconductors and crisis response to semiconductor shortages.~~deleted

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 ~~the technology node, substrate material, such as silicon carbide and gallium nitride, and othe~~product or pro~~duct~~cess innovation that can offer ~~better performance, process innovation or energy and environmental~~substantially better computing or energy consumption performance;

Amendment 189 #

Proposal for a regulation
Article 2 – paragraph 1 – point 10

(10) ‘first-of-a-kind facility’ means a~~n industrial facility capable of semiconductor manufacturing, including front-end or back-end, or both~~ front-end and back-end semiconductor manufacturing facility, which provides innovation with regard to the manufacturing process or final product, that is not yet substantively ~~already~~ present or committed to be built within the Union, ~~for instance with regard to the technology no~~and it includes, ~~substrate material, such as silicon carbide and gallium nitride, and other product~~but is not limited to, innovation that c~~an offer better~~oncerns performance, impro~~cess innovation or energy and environmental performance~~vements in computing power or in the level of security, safety or reliability, or in energy and environmental performance, or in the use of a new technology node or substrate material, or in the implementation of production processes that lead to efficiency gains;

Amendment 190 #

Marc ANGEL, Aurore LALUCQ, Jonás FERNÁNDEZ

Proposal for a regulation
Article 2 – paragraph 1 – point 13

(13) ‘back-end’ means the ~~packaging, assembly and test of each individual integrated circuit;~~ bonding, assembly and packaging, as well as the functional and quality test of each individual component coming out from the manufacturing of the semiconductor product;

Amendment 191 #

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 Coun~~or subsector crucial onfor the ~~resilience of critical entities, the defence sector and other activities that are relevant for~~maintenance of vital societal functions, notably public health and public safety and security;

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, ~~the defenc~~including types of entities operating within those sectors and not~~her activities that are relevant for~~ referred thereto, which are crucial for maintaining vital societal functions and ensuring public safety and security; .

Amendment 193 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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

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 ~~the twin di~~a social-ecologitcal ~~and green~~ transition.

Amendment 198 #

Marc ANGEL, Alfred SANT, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ

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 twin digital and green transition, notably by reducing the environmental impact of next generation chips and contributing to the circular economy, as well as promoting secure and resilient designs capable to counter cybersecurity threats.

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 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Eva KAILI

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, ~~attracting and mobilising new talent~~including via reskilling and sup~~porting the emergence of a suitably skilled workforce for strengthening the semiconductor sector, including via reskilling and upskilling of worker~~skilling of workers, while ensuring job and social security, employment growth and the highest standards regarding working conditions and labour rights.

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)

(1 a) ensuring social, democratic and ecologically sustainable business operations by linking Union or state support for private companies to the conditions set out in paragraph 2, points (ea) and (eb), of this Article.

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, ~~and~~ private legal entities, trade unions as well as works councils and civil society organisations dedicated to the protection of the environment;

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 #

Engin EROGLU, Linea SØGAARD-LIDELL

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 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Eva KAILI

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’) ~~may~~shall be established.

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 ~~first-of-a-kind~~ semiconductor design and manufacturing facilities of highest social and ecological standards , including front- end or back- end, or both, in the Union that contribute to the security of supply for the internal market.

Amendment 217 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Eva KAILI

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

~~(a) it qualifies as a first-of-a-kind facility;~~deleted

Amendment 219 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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 ~~with regard to ensuring the security of supply and increasing qualified workforce~~;

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 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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~~iority~~eferential access to the pilot lines set up in accordance with Article 5, point (b). Any such pr~~iority~~eferential access shall be without prejudice to effective access to the pilot lines by other interested undertakings.

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 ~~shall have~~may be granted priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings.

Amendment 230 #

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 of highest social and ecological standards in the Union that offer production capacity to unrelated undertakings and thereby contribute to the security of supply for the internal market.

Amendment 231 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Eva KAILI

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

~~(a) it qualifies as a first-of-a-kind facility;~~deleted

Amendment 233 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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 ~~with regard to ensuring the security of supply and increasing qualified workforce~~, taking into account in particular the extent to which it offers front-end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand;

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 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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)

Amendment 238 #

Marc ANGEL, Alfred SANT, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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~~iority~~eferential access to the pilot lines set up in accordance with Article 5, point (b). Any such pr~~iority~~eferential access shall be without prejudice to effective access to the pilot lines by other interested undertakings.

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 ~~shall have~~may be granted priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings.

Amendment 241 #

Antonio Maria RINALDI, Marco ZANNI, Valentino GRANT

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 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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 #

Antonio Maria RINALDI, Marco ZANNI, Valentino GRANT

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 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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 ~~ensure that the most rapid treatment legally possible is given to~~assess applications and provide investors with final and binding information as regards the financial support of their proposal, within six months of theseir application, to allow them to make adequate risk and investment assessments.

Amendment 249 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ

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 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

Proposal for a regulation
Article 14 – paragraph 3

3. The security of supply of semiconductors may be considered an imperative reason of overriding public interest within the meaning of Article 6(4) and Article 16(1)(c) of Directive 92/43/EEC and of overriding public interest within the meaning of Artprovisions of this Regulation shall be without prejudicle 4(7) of Directive 2000/60. Therefore, the planning, construction and operation of Integrated Production Facilities and Open EU Foundries may be considered of overriding public interest, provided that the remaining other conditions set out in these provisions are fulfilledto achieving the objectives under the European Green Deal.

Amendment 251 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

~~Member States shall carry out regular~~The Commission, assisted by national competent authorities, shall monitor~~ing of~~ the semiconductor value chain. In particular, it~~hey~~ shall:

Amendment 252 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2

~~Member States~~The Commission shall provide relevant findings to the European Semiconductor Board in the form of regular updates.

Amendment 253 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ

Proposal for a regulation
Article 15 – paragraph 2

2. ~~Member States~~The Commission shall invite the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. ~~To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set-up for these updates.~~

Amendment 254 #

Proposal for a regulation
Article 15 – paragraph 2

2. Member States shall ~~invite~~ensure that the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set-up for these updates.

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

5. Where the Commission becomes aware of a potential semiconductor crisis, a significant fluctuation in demand or has concrete and reliable information of any other risk factor or event materialising, based on an alert by a Member State provided in accordance with paragraph 4, or through other sources, including information from international partners, it shall without undue delay: (a) convene an extraordinary meeting of the European Semiconductor Board to coordinate the following actions: (1) assessing whether the activation of the crisis stage referred to in Article 18 is warranted; (2) discussing whether it may be appropriate, necessary and proportionate for Member States to jointly purchase semiconductors, intermediate products or raw materials affected or at threat of being affected by a potential semiconductor crisis (‘coordinated procurement’); (b) enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora.deleted

Amendment 257 #

Proposal for a regulation
Article 15 – paragraph 6

6. The coordinated procurement referred to in paragraph 5, point (a)(ii), shall be carried out by Member States in accordance with the rules set out in Article 38 of Directive 2014/24/EU of the European Parliament and of the Council66 . _________________ 66 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).deleted

Amendment 258 #

Proposal for a regulation
Article 15 – paragraph 7

Amendment 259 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Eva KAILI

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)~~. In the Union risk assessment, the Commission shall identify~~ and establish early warning indicators.

Amendment 260 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Eva KAILI

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 ~~the~~ Union risk assessment including the early warning indicators as necessary.

Amendment 261 #

Proposal for a regulation
Article 17

1. Member States shall identify key market actors along the semiconductor supply chains in their national territory, taking into account the following elements: (a) the number of other Union undertakings relying on the service or good provided by a market actor; (b) the Union or global market share of the key market actor in the market for such services or goods; (c) the importance of a market actor in maintaining a sufficient level of supply of a service or good in the Union, taking into account the availability of alternative means for the provision of that service or good; (d) the impact a disruption of supply of the service or good provided by the market actor may have on the Union’s semiconductor supply chain and dependent markets. 2. When monitoring the semiconductor value chain pursuant to Article 15, Member States shall, after consulting the European Semiconductor Board, monitor the availability and integrity of the services or goods which those kArticle 17 deleted Key market actors ~~provide.~~

Amendment 262 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ

Proposal for a regulation
Chapter IV – Section 2

~~[...]~~deleted

Amendment 263 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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~~upply of semiconductors leading to significant shortages, which~~emiconductor 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 264 #

Marc ANGEL, Aurore LALUCQ, Eva KAILI

Proposal for a regulation
Article 18 – paragraph 1 – point a

~~(a) entail significant delays or significant negative effects on one or more important economic sectors in the Union, or~~deleted

Amendment 265 #

Marc ANGEL, Aurore LALUCQ, Eva KAILI

Proposal for a regulation
Article 18 – paragraph 1 – point b

~~(b) prevent the supply, repair and maintenance of essential products used by critical sectors.~~deleted

Amendment 266 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ, Eva KAILI

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 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Eva KAILI

Proposal for a regulation
Article 19 – paragraph 1

Amendment 268 #

Proposal for a regulation
Article 19 – paragraph 2

2. ~~The Commission ma~~If necessary, after consulting the European Semiconductor Board, ~~limit~~the Commission may additionally take the measures provided for in Articles 21 ~~and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor~~or Article 22, or both, under the conditions laid down therein. In case measures provided for in Articles 21 and 22 are used, they shall be limited to the actors of the semiconductor supply chain directly related to the supply of the critical sectors referred to in the scope of the implementing act activating the crisis stage.

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’). ~~The~~Such an obligation shall ~~take precedence over any performance obligation under private or public law~~not compromise the free market or European companies' business practices.

Amendment 271 #

Proposal for a regulation
Article 21 – paragraph 2

2. The obligation under paragraph 1 can also be imposed to other semiconductor undertakings ~~which have accepted such possibility in the context of receiving public support~~.

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 ~~shall~~may inform the Commission. Should that obligation significantly impact the operation of certain critical sectors, the Commission may oblige that undertaking to accept and prioritise orders of crisis relevant products in line with paragraph 4, 5 and 6.

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 ~~decision~~consultation with the undertaking concerned. The decision shall be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case, including the principles of necessity and proportionality. The decision shall in particular have regard for the legitimate aims and circumstances of the undertaking concerned ~~and~~, as well as a complete analysis of the cost and effort required ~~for any~~to change inthe production sequence. In its ~~decis~~arguments to enact a priority order obligation, the Commission shall state the legal basis ofor the priority rated order, fix the time-limit within which the order is to be performed, and, where applicable, specify the product and quantity, and state the penalties provided for in Article 28 for non- compliance with the obligationset a desirable deadline, and, where applicable, specify the product and quantity. The priority rated order shall be placed at fair and reasonable price.

Amendment 274 #

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~~ 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 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~~, even under preferential treatment of the order~~;

Amendment 277 #

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.

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 #

Marc ANGEL, Elisabetta GUALMINI, Aurore LALUCQ, Jonás FERNÁNDEZ

Proposal for a regulation
Article 21 – paragraph 6

6. Where an undertaking ~~is obliged to~~ accepts and prioritise a priority rated order, it shall not be liable for any breach of contractual obligations that is required to comply with the priority rated orders. The liability shall be excluded only to the extent that the violation of contractual obligations was necessary for compliance with the mandated prioritisation.

Amendment 280 #

Proposal for a regulation
Article 22 – paragraph 1

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 ~~organise~~explain in detail the possibility of common purchasing referred to in paragraph 1, including acceptable justifications for its use and liabilities to be assumed by the Commission.

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 ~~for its own procurement~~. The Commission may have the ability ~~and responsibility~~, on behalf of all participating Member States, to enter into contracts with economic operators, including individual producers of crisis- relevant products, concerning the purchase ~~of such products or concerning~~, the advanced financing of the production or the development of such products in exchange for a priority ~~right~~access to the result.

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 284 #

Proposal for a regulation
Chapter V – Section 1

~~[...]~~deleted

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 an, workers' organisations, private companies and relevant civil society organisations dedicated to environmental protection. The European Semiconductor Board shall be chaired by a representative of the Commission.

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 interests of the semiconductor industry~~, including the Industrial Alliance on Processors and Semiconductor Technologies and user~~ and organisations representing the interest of the employees of the semiconductor~~s at Union level,~~ industry to such sub-groups in the capacity of observers. A sub-group including Union Research and Technology Organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the European Semiconductor Board.

Amendment 287 #

Proposal for a regulation
Article 25 – paragraph 4

4. The Commission ~~may~~shall appoint observers to take part in the meetings, as appropriate. The Commission ~~may~~shall invite experts with specific expertise, including from relevant stakeholder organisations, with respect to a subject matter on the agenda to take part in the meetings of the European Semiconductor Board on an ad hoc basis. The Commission may facilitate exchanges between the European Semiconductor Board and other Union bodies, offices, agencies and advisory groups. The Commission shall invite a representative from the European Parliament as an observer to the European Semiconductor Board. The Commission shall ensure the participation of relevant other Union institutions and bodies as observers to the European Semiconductor Board with respect to meetings concerning Chapter IV on monitoring and crisis response. Observers and experts shall not have voting rights and shall not participate in the formulation of opinions, recommendations or advice of the European Semiconductor Board and its sub-groups.

Amendment 288 #

Proposal for a regulation
Article 26 – paragraph 2

2. Where a Member States designates more than one national competent authority, it~~hey~~ shall clearly set out the respective responsibilities of the authorities concerned and ensure that they cooperate effectively and efficiently to fulfil their tasks under this Regulation, including with regard to the designation and activities of the national single point of contact referred to in paragraph 3.

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 out their tasks and activities in such a manner as to protect in particular intellectual property rights and sensitive business information or trade secrets. This obligation shall apply to all representatives of Member States, observers, experts and other participants attending meetings of the European Semiconductor Board pursuant to Article 23 and the members of the Committee pursuant to Article 33(1).

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 ~~an adequate~~the highest level of confidentiality.

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 3200 000 EUR.

Amendment 292 #

Proposal for a regulation
Article 28 – paragraph 3

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~~hree~~wo years.

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 submit a report on the evaluation and review of this Regulation to the European Parliament and to the Council. The evaluation shall in particular focus on the following aspects: - the effectiveness in contributing to the build-up, strengthening and innovativeness of the European semiconductor ecosystem; - the effectiveness in contributing to the autonomy of the European economy; - the impact on competition in the European semiconductor sector; - the impact on the competitiveness of the European semiconductor sector; - the appropriateness of the governance structure set out in this Regulation; - the appropriateness of the market intervention tools set out in this Regulation; - an analysis if the measures in this Regulation have led to crowding out of private investments; - an analysis of recent trends in the semiconductor industry and how the provisions of this Regulation fit with overall market trends; - an assessment on whether the initiative should be continued in the next MFF and, if so, an estimate of the appropriate financial provisions. The reports shall be made public.

source: 732.641

2022/09/19 IMCO 178 amendments...

Amendment 100 #

(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, assisted by the European Semiconductor Board, identify early warning indicators in the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. These early warning indicators criteria should be as exhaustive as possible and transparently identified. Member States should monitor these early warning indicators.

Amendment 101 #

Proposal for a regulation
Recital 38

(38) ~~A number of~~Some undertakings providing semiconductor services or goods are assumed to be essential for an effective semiconductor supply chain in the Union’s semiconductor ecosystem, due to the number of Union undertakings relying on their products, their Union or global market share, their importance to ensure a sufficient level of supply or the possible impact of the disruption of supply of their products or services. The Member States should identify those key market actors in their territory.

Amendment 102 #

Proposal for a regulation
Recital 39 a (new)

(39 a) In order to prevent the disruption in market competitiveness, the Commission should analyse the long-term effects of the subsidies granted in relation to this Regulation on innovations as subsidies and other forms of support can encourage complacency at recipient firms, therefore acting against technological upgrading in the semiconductor industry. The analysis should be publicly available and updated at least every 3 years.

Amendment 103 #

Proposal for a regulation
Recital 40

(40) As part of the monitoring, Member States cshould specifically consider the availability and integrity of the services and goods of key markets actors. Such issues could be brought to the attention of the Commission and the European Semiconductor Board by the Member State concerned.

Amendment 104 #

Proposal for a regulation
Recital 40

(40) As part of the monitoring, Member States and the Commission could specifically consider the availability and integrity of the services and goods of key markets actors. Such issues could be brought to the attention of the European Semiconductor Board by the Member State concerned.

Amendment 105 #

Proposal for a regulation
Recital 40

(40) As part of the monitoring, Member States could specifically consider the availability ~~and integrity~~ of the services and goods of key markets actors. Such issues could be brought to the attention of the European Semiconductor Board by the Member State concerned.

Amendment 106 #

Proposal for a regulation
Recital 42

(42) The semiconductor crisis stage should be triggered in the presence of concrete~~, serious,~~ and reliable evidence of such a crisis. A semiconductor crisis occurs in case of serious disruptions to the supply of semiconductors ~~leading to significant shortages which entail significant delays and negative effects on one or more important economic sectors in the Union, either directly or through ripple effects of the shortage~~, preventing the functioning of the critical industrial sectors and thereby affecting important economic sectors, given that the Union’s industri~~al sector~~es represent a strong user base of semiconductors. Alternatively or in addition, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which prevent the supply, repair and maintenance of essential products used by critical sectors, for instance medical and diagnostic equipment.

Amendment 107 #

Proposal for a regulation
Recital 42

(42) The semiconductor crisis stage should be triggered in the presence of concrete, serious, and reliable evidence of such a crisis. A semiconductor crisis occurs in case of serious disruptions to the supply of semiconductors leading to significant shortages which entail significant delays and negative effects on one or more important economic sectors in the Union, such as the car industry which has been particularly affected by the chips shortages in Europe, leading to significant social consequences for many companies and workers, either directly or through ripple effects of the shortage, given that the Union’s industrial sectors represent a strong user base of semiconductors. Alternatively or in addition, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which prevent the supply, repair and maintenance of essential products used by critical sectors, for instance medical and diagnostic equipment.

Amendment 108 #

Proposal for a regulation
Recital 42

(42) The semiconductor crisis stage should be triggered in the presence of concrete, serious, and reliable evidence of such a crisis. A semiconductor crisis occurs i~~n case of~~f there is a serious disruptions to the supply of semiconductors leading to significant shortages which entail significant delays and negative effects on one or more important economic sectors in the Union, either directly or through ripple effects of the shortage, given that the Union’s industrial sectors represent a strong user base of semiconductors. Alternatively or in addi of products or services which leads to an extraordinary situation which poses a serious threat to the functioning, health, or security and defence of the infrastructure, economy, institutions, ~~a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which prevent~~Member States or citizens of the Union. This could for instance entail the supply, repair and maintenance of essential products used by critical sectors, for instance medical and diagnostic equipment.

Amendment 109 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

Proposal for a regulation
Recital 42

(42) The semiconductor crisis stage should be triggered in the presence of concrete, serious, quantified or, in the absence of sufficient information, duly estimated and reliable evidence of such a crisis. A semiconductor crisis occurs in case of serious disruptions to the supply of semiconductors leading to significant long term structural shortages which entail significant delays and negative effects on one or more important economic sectors in the Union, either directly or through ripple effects of the shortage, given that the Union’s industrial sectors represent a strong user base of semiconductors. Alternatively or in addition, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant long term structural shortages which prevent the supply, repair and maintenance of essential products used by critical sectors, for instance medical and diagnostic equipment.

Amendment 110 #

Proposal for a regulation
Recital 42

(42) The semiconductor crisis stage should be triggered as last resort in the presence of concrete, serious, and reliable evidence of such a crisis. A semiconductor crisis occurs in case of serious disruptions to the supply of semiconductors leading to significant shortages which entail significant delays and negative effects on one or more important economic sectors in the Union, either directly or through ripple effects of the shortage, given that the Union’s industrial sectors represent a strong user base of semiconductors. Alternatively or in addition, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which prevent the supply, repair and maintenance of essential products used by critical sectors, for instance medical and diagnostic equipment.

Amendment 111 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

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, if necessary and proportionate, to activate the crisis stage by means of an implementing acts and for a predetermined duration period, taking into account the opinion of the European Semiconductor Board. The Commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period, should such a necessity be ascertained, and in accordance with the principle of proportionality, taking into account the opinion of the European Semiconductor Board. Whereby supply disruptions have been resolved, the Commission may terminate the crisis stage before the end of its duration, following consultation with the European Semiconductor Board, by means of implementing acts.

Amendment 112 #

Proposal for a regulation
Recital 43

Amendment 113 #

Proposal for a regulation
Recital 43

Amendment 114 #

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 acts and for a predetermined duration period, taking into account the opinion of the European Semiconductor Board and relevant market stakeholders. The Commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period, should such a necessity be ascertained, taking into account the opinion of the European Semiconductor Board and relevant market stakeholders.

Amendment 115 #

Proposal for a regulation
Recital 44

Amendment 116 #

Proposal for a regulation
Recital 44

(44) Close cooperation between the Commission ~~and~~, the Member States and the key market actors and coordination of any national measures taken with regard to the semiconductor supply chain is indispensable during the crisis stage with a view to addressing disruptions with the necessary coherence, resiliency and effectiveness. To this end, the European Semiconductor Board should hold extraordinary meetings as necessary. Any measures taken should be strictly limited to the duration period of the crisis stage.

Amendment 117 #

Proposal for a regulation
Recital 53

(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. Common purchasing should be explicitly used to resolve supply disruptions of semiconductors during a crisis and should not be used for other purposes. The mandating Member States must duly justify the intended further use of the purchased products to the Commission. The mandate could authorise the Commission to enter into agreements concerning the purchase of crisis-relevant products for certain critical sectors. The Commission should assess for each request the utility, necessity and proportionality in consultation with the Board. Where it intends to not follow the request, it should inform the concerned Member States and the Board and give its reasons. Furthermore, the participating Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. The deployment and use of purchased products should remain within the remit of the participating Member States, in line with its proclaimed intended use.

Amendment 118 #

Proposal for a regulation
Recital 53

(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. In particular, special attention shall be paid to an appropriate integration of environmental, social and labour requirements into public procurement procedures, as well as on the principles of equal treatment and transparency, as stated in the Directives 2014/24/EU and 2014/25/UE on public procurement. The mandate could authorise the Commission to enter into agreements concerning the purchase of crisis-relevant products for certain critical sectors. The Commission should assess for each request the utility, necessity and proportionality in consultation with the Board. Where it intends to not follow the request, it should inform the concerned Member States and the Board and give its reasons. Furthermore, the participating Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. The deployment and use of purchased products should remain within the remit of the participating Member States.

Amendment 119 #

Proposal for a regulation
Recital 53

(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 certain critical sectors. The Commission should assess for each request the utility, necessity and proportionality in consultation with the Board. The Commission should also assess and quantify the effectiveness of other available measures in order to limit the threat to the functioning of the Internal market including critical entities. Where it intends to not follow the request, it should inform the concerned Member States and the Board and ~~give~~publish its reasons. Furthermore, the participating Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. The deployment and use of purchased products should remain within the remit of the participating Member States.

Amendment 120 #

Proposal for a regulation
Recital 53

(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 certain critical sectors. The Commission should assess for each request the utility, necessity and proportionality in consultation with the Board. Where it intends to not follow the request, it should inform the concerned Member States and the Board and give its reasons. Furthermore, the participating Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. The deployment and use of purchased products should remain within the remit of the participating Member States. All procurement agreements resulting from the procurement efforts should adhere to the highest level of transparency to allow public scrutiny of the contracts.

Amendment 121 #

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism between the Member States and the Commission for monitoring the supply of semiconductors and crisis response to semiconductor shortages, with the aim of ensuring the European Union's resilience and strategic autonomy in the global semiconductors supply chain.

Amendment 122 #

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism between the Member States and the Commission, with a strong involvement of the actors in the semiconductor value chain, for monitoring the supply of semiconductors and crisis response to semiconductor shortages.

Amendment 123 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism between ~~the~~ Member States ~~and~~, the Commission and critical industry players for monitoring the supply of semiconductors and develop crisis pre~~sponse to~~vention tools and crisis management of semiconductor shortages.

Amendment 124 #

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism between the Member States ~~and~~, the Commission as well as key market actors and relevant end user industries for monitoring the supply of semiconductors and crisis response to semiconductor shortages.

Amendment 125 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism between the Member States and the Commission for monitoring the supply of semiconductors and crisis response to semiconductor shortages in the specific cases.

Amendment 126 #

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, the defence sector ~~and other~~, activities that are relevant for public safety and security as well as any other activity or sector of strategic economic importance for Member States;

Amendment 127 #

Proposal for a regulation
Article 2 – paragraph 1 – point 16 a (new)

(16 a) ‘critical entity’ means a critical entity as defined in Article 2(1) of Directive (EU) No 2022/…. on the resilience of critical entities];

Amendment 128 #

Tom VANDENKENDELAERE

Proposal for a regulation
Article 2 – paragraph 1 – point 17

Amendment 129 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17

(17) ‘~~crisis-relevant~~essential product’ means semiconductors, intermediate products and raw materials required to produce semiconductors or intermediate products, that are affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereof;

Amendment 130 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)

(17 a) ‘crisis’ means a serious disruption to the supply of semiconductors leading to a significant shortage of products or services which leads to an extraordinary situation which poses a serious threat to the functioning, health, or security and defence of the infrastructure, economy, institutions, Member States or citizens of the Union;

Amendment 131 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)

(17 a) ‘semiconductor crisis’ means a serious semiconductor supply chain disruptions at any link of the semiconductor value chain preventing the functioning of critical sectors;

Amendment 132 #

Proposal for a regulation
Chapter IV – Section 1 – title

1 Monitoring and enhanced transparency

Amendment 133 #

Proposal for a regulation
Article 15 – title

Monitoring ~~and alerting~~

Amendment 134 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

Member States ~~shall~~may carry out regular monitoring of the semiconductor value chain, if it is proportionate and necessary, and carried out in such a way that it does not create a administrative or financial burden. In particular, they shall:

Amendment 135 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

When Member States receive relevant and reliable information about warning indicators identified pursuant to Article 16, they shall carry out ~~regular~~ monitoring of the semiconductor value chain. In particular, they shall:

Amendment 136 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

MSem~~ber States~~i-conductor industry actors, under the guidance and supervision of the European Commission, shall carry out regular monitoring of the semiconductor value chain. In particular, they shall:

Amendment 137 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

~~Member States shall~~The Commission shall, assisted by national competent authorities and the key market actors, carry out regular monitoring of the semiconductor value chain. In particular, they shall:

Amendment 138 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a

(a) ~~monitor~~encourage relevant stakeholders to monitor and inform them about early warning indicators identified pursuant to Article 16;

Amendment 139 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a a (new)

(a a) identify best practices for risk mitigation and crisis measures;

Amendment 140 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a b (new)

(a b) assess the risks threatening the functioning of critical entities in relation semiconductors;

Amendment 141 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a c (new)

(a c) compare and quantify the impacts of the available risk mitigation measures;

Amendment 142 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point b a (new)

(b a) manage their supply chain with due diligence, in particular to ensure resilience et security of supply;

Amendment 143 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point b b (new)

(b b) provide data through the transparency mechanism set out in article 15a and alert the Commission when a shortage or potential shortage is foreseen.

Amendment 144 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2

~~Member Stat~~The Commission, in cooperation with national competent authorities shall provide relevant data and findings to the European Semiconductor Board in the form of regular updates.

Amendment 145 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2

The Commission and the Member States shall provide all relevant findings to the European Semiconductor Board in the form of regular updates at least each 6 months.

Amendment 146 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2

Member States shall provide relevant findings to the European Semiconductor Board ~~in the form of regular updates~~.

Amendment 147 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

Proposal for a regulation
Article 15 – paragraph 2

~~2. Member States~~The Commission, assisted by national competent authorities, shall invite the 2. main users of semiconductors and other relevant stakeholders, including third country partners, to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, ~~Member States shall provide for a mechanism and administra~~the Commission shall establish a single point of contact for the information to be provided, including a mechanism whereby stakeholders can easily and securely exchange relevant information. In order to ensure uniformity so that data can be collated and analysed in a meaningful and effective way, by date of entry into force of this Regulation guidance shall be provided by the Commission on the type of information required, and the Commission shall ensure there are sufficient expertivse ~~set-up for these updates~~and resources allocated to this role. Guidance on the information required shall be amended and adapted depending on technological, geopolitical, and market developments. The Commission should provide guidance to SMEs on how they should provide information for the purposes of monitoring and alerting.

Amendment 148 #

Proposal for a regulation
Article 15 – paragraph 2

2. Member States shall invite the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set-up for these updates. In doing so, Member States shall consult relevant end user industries with a view to build the necessary mechanisms on existing industry best monitoring practices.

Amendment 149 #

Proposal for a regulation
Article 15 – paragraph 2

2. Member States shall ~~invit~~encourage the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set-up for th~~ese updates~~is information.

Amendment 150 #

Proposal for a regulation
Article 15 – paragraph 2

2. Member States ~~shall~~may invite the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set-up for these updates.

Amendment 151 #

Proposal for a regulation
Article 15 – paragraph 3

3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. National competent authorities in such case will pay particular attention to SMEs to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. National competent authorities prioritise the information received from the key market players. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.

Amendment 152 #

Proposal for a regulation
Article 15 – paragraph 3

3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. Requests that confidential data shall be kept to the minimum necessary and shall be appropriately motivated. National competent authorities in such case wishall pay ~~particular~~ attention to ~~SMEs to~~ minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.

Amendment 153 #

Proposal for a regulation
Article 15 – paragraph 3

3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. National competent authorities in such case wishall pay particular attention to SMEs to minimise administrative burden resulting from the request and wishall privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27. Provision of such information shall be voluntary.

Amendment 154 #

Proposal for a regulation
Article 15 – paragraph 3

3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain ~~where~~if strictly necessary and proportionate for the purpose of paragraph 1. National competent authorities in such case ~~will~~must pay particular attention to ~~SMEs to~~ minimise administrative burden resulting from the request and will privilege digital and easy solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.

Amendment 155 #

Proposal for a regulation
Article 15 – paragraph 3 a (new)

3 a. The Commission shall produce an annual report in cooperation with the European Semiconductor Board in order to assess the regularity of information requests, the type and volume of information being requested, in particular from SMEs, and it shall identify if necessary the need to further streamline processes and provide further support in navigating information requests in the context of this Regulation.

Amendment 156 #

Proposal for a regulation
Article 15 – paragraph 4

Amendment 157 #

Proposal for a regulation
Article 15 – paragraph 4

4. Where a Member State, based on the early warning indicators, becomes aware of a potential semiconductor crisis, a significant fluctuation in demand or has concrete and reliable information of any other risk factor or event materialising, it shall immediately alert the Commission ~~(‘early warning’).~~ and the European Semiconductor Board (‘early warning’). A semiconductor crisis, a significant fluctuation in demand and other risk factors, shall be pre-defined alongside a clear set of benchmarks. The Commission shall undertake such task in cooperation with the European Semiconductor Board and the key market actors.

Amendment 158 #

Proposal for a regulation
Article 15 – paragraph 4

4. Where a Member State becomes aware of a potentially considerable semiconductor crisis, a significant fluctuation in demand or has concrete and reliable information of any other risk factor or event materialising, it ~~shall immediatel~~may alert the Commission (‘early warning’).

Amendment 159 #

Proposal for a regulation
Article 15 – paragraph 5

Amendment 160 #

Proposal for a regulation
Article 15 – paragraph 5 – point a – introductory part

(a) convene an extraordinary meeting of the European Semiconductor Board, including relevant stakeholders in the semiconductor supply chain, to coordinate the following actions:

Amendment 161 #

Proposal for a regulation
Article 15 – paragraph 5 – point a – point 1

(1) assessing whether the activation of the crisis stage referred to in Article 18 is warranted, necessary and proportionate;

Amendment 162 #

Proposal for a regulation
Article 15 – paragraph 5 – point a – point 2

(2) in case of threatening the functioning of critical entities, discussing whether it may be appropriate, necessary and proportionate for Member States to jointly purchase semiconductors, intermediate products or raw materials affected or at threat of being affected by a potential semiconductor crisis (‘coordinated procurement’);

Amendment 163 #

Proposal for a regulation
Article 15 – paragraph 5 – point b

(b) in case of threatening the functioning of critical entities, enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora. The Commission shall assess different measures and find a solution to address supply chain disruption risks threatening the functioning of critical entities not later than 4 months after obtaining such information.

Amendment 164 #

Proposal for a regulation
Article 15 – paragraph 5 – point b

(b) enter into consultations or cooperation, on behalf of the Union, and after consulting the European Semiconductor Board, with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora.

Amendment 165 #

Proposal for a regulation
Article 15 – paragraph 5 – point b

(b) enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions, in compliance with international obligations. This ~~may~~shall involve, where appropriate, coordination in relevant international fora.

Amendment 166 #

Proposal for a regulation
Article 15 – paragraph 6

Amendment 167 #

Proposal for a regulation
Article 15 a (new)

Article 15 a Strategic mapping and transparency mechanism 1. The Commission shall work together with the European Semiconductor board and semiconductor industry player towards supply chain transparency standards. To that end: a. The Commission shall carry out a mapping based on publicly available data and commercial databases. The Commission shall identify essential data relevant for this purpose, establish a list of missing key data and assess opportunities for standardising of data sets requirement and needs for data transfers from industry players. b. The Commission shall establish an ad- hoc semiconductor forum with relevant stakeholders, including industrial players, academia and civil society, to establish supply chain standards and best practices. 2. The Commission shall act as a central hub for the strategic mapping of the global semiconductor value chain in accordance with article 16a (1). 3. Access to EU led funding and investment initiatives under this regulation shall be contingent on good faith efforts to provide data pursuant to the application of this Act.

Amendment 168 #

Proposal for a regulation
Article 16 – paragraph 1

1. The Commission shall, after consulting the European Semiconductor Board and representative organisations of undertakings operating along the semiconductor supply chain, assess risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment). In the Union risk assessment, the Commission shall identify early warning indicators.

Amendment 169 #

Proposal for a regulation
Article 16 – paragraph 1

1. The Commission shall, after consulting the European Semiconductor Board, assess risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment). In the Union risk assessment, the Commission shall identify early warning indicators and shall publish them until [6 months after entering into force of this Regulation]..

Amendment 170 #

Proposal for a regulation
Article 16 – paragraph 1

1. The Commission shall, after consulting the European Semiconductor Board, assess risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment)~~. In the Union risk assessment, the Commission shall identify early warning indicators~~, including possible bottlenecks or high dependencies on third country products or equipment.

Amendment 171 #

1 a. Based on the Union risk assessment the Commission shall identify early warning indicators and shall develop a list of these indicators in cooperation with the European Semiconductor Board. This list of early warning indicators shall be shared with the competent national authorities and the key market actors.

Amendment 172 #

Proposal for a regulation
Article 16 – paragraph 2

2. The Commission shall review the Union risk assessment including the early warning indicators a~~s necessary~~t least every two years or upon request of the European Semiconductor Board. In the event of significant market and geopolitical developments, those indicators shall be updated.

Amendment 173 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

Proposal for a regulation
Article 16 – paragraph 2

2. The Commission shall review the Union risk assessment including the early warning indicators as necessary. , following consultations with representative organisations of undertakings operating along the semiconductor supply chain.

Amendment 174 #

Proposal for a regulation
Article 16 – paragraph 2

2. The Commission shall review the Union risk assessment including the early warning indicators as necessary, including upon indication of the European Semiconductor Board.

Amendment 175 #

Proposal for a regulation
Article 16 – paragraph 2 a (new)

2 a. By [18 months after entering into force of this Regulation], the Commission shall assess whether, in view of regulatory and market development, the risk assessment and early warning indicators are effective, proportionate, evidence- based and sufficient to identify the risks. The early warning indicators shall also assess the optimal level of resilience considering the market effectiveness, the resilience price premium and the risk premium. Where appropriate, the Commission shall amend or terminate this article for that purpose, accompanied by impact assessment including quantified cost-benefit analysis and an external study.

Amendment 176 #

Proposal for a regulation
Article 16 – paragraph 3

3. When ~~monitoring~~assessing information about the semiconductor value chain pursuant to Article 15, Member States shall monitor the early warning indicators identified by the Commission.

Amendment 177 #

Proposal for a regulation
Article 16 a (new)

Article 16 a Union strategic assessment and risk prevention 1. The Commission shall, together with the European Semiconductor Board and Member States, carry out a long-term strategic mapping of the European semiconductor ecosystem with the aim 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. Such mapping should be periodically updated and include : a) identification of key products and critical infrastructures depending on semiconductors; b) understanding of dependencies on foreign technology and resource providers, market concentrations, barriers to entry, chokepoints and market dynamics within the global semiconductor ecosystem; c) assessing the potential direct and indirect impacts of foreign governments' geoeconomic measures, such as export restrictions; d) assessing global stocks of critical raw materials and risks of shortages within the sector; e) evaluating the environmental impact of the semiconductor industry and drawing recommendations and best practices for sustainability;recommendation on further international partnerships and opportunities for domestic investment in capacity building and production facilities. 2. The Commission shall, together with the European Semiconductor Board, assess and encourage the diversification of raw and processed material sourcing of key semiconductor applications and products to mitigate dependencies on foreign raw material importation and reduce material extraction as a risk prevention strategy to enhance the European Union's strategic autonomy. Such diversification should include standardisation and interoperability efforts, diversification of international suppliers in the value chain, and developing and investing in advanced environmentally-friendly recycling capabilities of electronic waste material in Europe.

Amendment 178 #

Proposal for a regulation
Article 17 – paragraph 1 – introductory part

1. Member States shall identify relevant critical entities relying on semiconductors and other key market actors along the semiconductor supply chains in their national territory, taking into account the following elements:

Amendment 179 #

Proposal for a regulation
Article 17 – paragraph 1 – introductory part

1. The Commission shall, in close cooperation with the Member States ~~shall~~, identify key market actors along the semiconductor supply chains in their national territory, taking into account the following elements:

Amendment 180 #

Proposal for a regulation
Article 17 – paragraph 1 – point a

(a) the number of other Union undertakings relying directly or indirectly on the service or good provided by a market actor;

Amendment 181 #

Proposal for a regulation
Article 17 – paragraph 1 – point d

(d) the impact a disruption of supply of the service or good provided by the market actor may have on the Union’s semiconductor supply chain ~~and~~, dependent markets and critical sectors in particular.

Amendment 182 #

Proposal for a regulation
Article 17 a (new)

Article 17 a Due diligence and risk mitigation obligations 1. Key market actors shall act with due diligence by assessing the security of their supply of semiconductor raw materials, intermediary products, and equipment and design, and implement risk mitigation measures with the aim of reducing the risks of shortages, such as by diversification of suppliers, strategic overstock, adequate inventory levels and stockpiling of essential products. They should also identify strategic chips and assess how they could be substituted, if necessary. 2. Critical sector entities shall act with due diligence by assessing the security of their supply of semiconductor products and implementing risk mitigation measures with the aim of reducing the risks of shortages. 3. The Commission and national competent authorities shall be able to, when appropriate, request information about the risk mitigation measures taken pursuant to paragraphs 1 and 2. 4. The Commission and national competent authorities shall ensure that the management bodies of key market actors and critical sector entities engage in risk mitigation measures, supervise its implementation and be accountable for the non-compliance with the obligations under this Article. 5. Key market actors shall disclose potential disruptions of the supply chain of their products to the relevant users of semiconductors and to the Commission and National competent authorities. All participants to these exchanges shall respect the confidentiality of commercially confidential information, including intellectual property rights. 6. The Commission shall adopt delegated acts in accordance with Article 32 in order to provide guidelines setting out the details of the procedure to be followed for the application of this Article.

Amendment 183 #

Proposal for a regulation
Article 18

Activation of the crisis stage 1. A semiconductor crisis shall be considered to occur when there are serious disruptions in the supply of semiconductors leading to significant shortages, which: (a) entail significant delays or significant negative effects on one or more important economic sectors in the Union, or (b) prevent the supply, repair and maintenance of essential products used by critical sectors. 2. Where an assessment of the Commission provides concrete, serious, and reliable evidence of a semiconductor crisis, the Commission may activate the crisis stage by means of implementing acts in accordance with Article 33(2). The duration of the activation shall be specified in the implementing act. Where, in view of the scope and gravity of the semiconductor crisis, duly justified imperative grounds of urgency so require, the procedure provided for in Article 33(3) shall apply to implementing acts adopted pursuant to this Article. 3. Before the expiry of the duration for which the crisis stage was activated, the Commission shall, after consulting the European Semiconductor Board, assess whether the activation of the crisis stage should be prolonged. Where the assessment concludes that a prolongation is appropriate, the Commission may prolong the activation by means of implementing acts. The duration of the prolongation shall be specified in the implementing acts adopted in accordance with Article 33(2). The Commission may repeatedly decide to prolong the activation of the crisis stage where this is appropriate. 4. During the crisis stage, the Commission shall, upon request from a Member State or on its own initiative, convene extraordinary meetings of the European Semiconductor Board as necessary. Member States shall work closely with the Commission and coordinate any national measures taken with regard to the semiconductor supply chain within the European Semiconductor Board. 5. Upon expiry of the duration for which the crisis stage is activated, the measures taken in accordance with Articles 20, 21 and 22 shall cease to apply. The Commission shall review the Union risk assessment pursuant to Article 16(2) no later than six months after the expiry of the duration of the crisis stage.rticle 18 deleted

Amendment 184 #

Proposal for a regulation
Article 18 – title

Activation of ~~the~~a crisis stage

Amendment 185 #

Proposal for a regulation
Article 18 – paragraph 3

3. Before the expiry of the duration for which the crisis stage was activated, the Commission shall, after consulting the European Semiconductor Board, assess whether the activation of the crisis stage should be prolonged. Where the assessment including quantified evidence and cost-benefit analysis concludes that a prolongation is appropriate, the Commission may prolong the activation by means of implementing acts. ~~The durati~~A special attention shall be paid to a possible distortion of market competition and avoiding unnecessary isolation of the EU market and businesses. The assessment shall be made publicly available, taking into account the professional or other relevant secrecy. The duration and reason of the prolongation shall be specified in the implementing acts adopted in accordance with Article 33(2). The Commission may repeatedly decide to prolong the activation of the crisis stage where this is appropriate.

Amendment 186 #

Proposal for a regulation
Article 18 – paragraph 3

3. Before the expiry of the duration for which the crisis stage was activated, the Commission shall, after consulting the European Semiconductor Board and relevant stakeholders in the semiconductor supply chain, assess whether the activation of the crisis stage should be prolonged. Where the assessment concludes that a prolongation is appropriate, the Commission may prolong the activation by means of implementing acts. The duration of the prolongation shall be specified in the implementing acts adopted in accordance with Article 33(2). The Commission may repeatedly decide to prolong the activation of the crisis stage where this is appropriate.

Amendment 187 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

3. Before the expiry of the duration for which the crisis stage was activated, the Commission shall, after consulting the European Semiconductor Board and industry stakeholders, assess whether the activation of the crisis stage should be prolonged. Where the assessment concludes that a prolongation is appropriate, the Commission may prolong the activation by means of implementing acts. The duration of the prolongation shall be specified in the implementing acts adopted in accordance with Article 33(2). The Commission may repeatedly decide to prolong the activation of the crisis stage where this is appropriate.

Amendment 188 #

Proposal for a regulation
Article 18 – paragraph 3 a (new)

3 a. During the crisis stage the Commission shall, upon request from a Member State or on its own initiative, equally assess whether advance termination of crisis stage should be considered. Where the assessment concludes that earlier termination is appropriate, the Commission may conclude activation after consulting the European Semiconductor Board.

Amendment 189 #

Proposal for a regulation
Article 18 – paragraph 4

4. During the crisis stage, the Commission shall, upon request from a Member State or on its own initiative, convene extraordinary meetings of the European Semiconductor Board as necessary, including stakeholders in the semiconductor supply chain. Member States shall work closely with the Commission and coordinate any national measures taken with regard to the semiconductor supply chain within the European Semiconductor Board.

Amendment 190 #

Proposal for a regulation
Article 18 – paragraph 4

4. During the crisis stage, the Commission shall, upon request from a Member State or on its own initiative, convene extraordinary meetings of the European Semiconductor Board as necessary. Member States and key market actors shall work closely with the Commission and coordinate any ~~national~~relevant measures taken with regard to the semiconductor supply chain within the European Semiconductor Board.

Amendment 191 #

Proposal for a regulation
Article 18 – paragraph 4

4. ~~During the~~Before and during the confirmed crisis stage, the Commission shall, upon request from a Member State or on its own initiative, convene extraordinary meetings of the European Semiconductor Board as necessary. Member States shall work closely with the Commission and coordinate any national measures taken with regard to the semiconductor supply chain within the European Semiconductor Board.

Amendment 192 #

Proposal for a regulation
Article 18 – paragraph 4 a (new)

4 a. The triggering of the crisis stage shall be accompanied by a crisis situation assessment report, drawn up by the Commission and the European Semiconductor Board, and made available to the European Parliament.

Amendment 193 #

Proposal for a regulation
Article 18 – paragraph 4 b (new)

4 b. In cases where serious supply disruptions have been resolved and upon the assessment of the Commission and after consulting the European Semiconductor Board and industry stakeholders, the Commission may terminate the crisis stage before the end of its duration by means of implementing acts.

Amendment 194 #

Proposal for a regulation
Article 18 – paragraph 5

5. Upon expiry of the duration for which the crisis stage is activated, the measures taken in accordance with Articles 20, 21 and 22 shall cease to apply. The Commission shall, after consulting the European Semiconductor Board, review the Union risk assessment pursuant to Article 16(2) no later than six months after the expiry of the duration of the crisis stage.

Amendment 195 #

Proposal for a regulation
Article 18 – paragraph 5

5. Upon expiry of the duration for which the crisis stage is activated, the measures taken in accordance with Articles 20, 21 and 22 shall cease to apply. The Commission shall review the Union risk assessment pursuant to Article 16(2) no later than six months after the expiry of the duration of the crisis stage. The result of such review shall be published.

Amendment 196 #

Proposal for a regulation
Article 19

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. 2. The Commission may, after consulting the European Semiconductor Board, limit the measures provided for in Articles 21 and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis. 3. Where the crisis stage is activated and where appropriate in order to address the semiconductor crisis in the Union, the European Semiconductor Board may: (a) assess the impact of the possible imposition of protective measures, including in particular whether the market situation corresponds to a significant shortage of an essential product pursuant to Regulation 2015/479 and provide an opinion to the Commission; (b) assess and advise on further appropriate and effective emergency measures. 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 placing disproportionate administrative burden on SMEs. 5. The Commission shall regularly inform the European Parliament and the Council of any measures taken in accordance with paragraph 1 and explain the reasons of its decision. 6. The Commission may, after consulting the European Semiconductor Board, issue guidance on the implementation and the use of the emergency measures.Article 19 deleted Emergency toolbox

Amendment 197 #

Proposal for a regulation
Article 19 – title

ECrisis emergency toolbox

Amendment 198 #

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 th~~proportionate measures provided for in Article 2~~1 or Article 22, or both,~~0 under the conditions laid down therein.

Amendment 199 #

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~~may take the measures 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~~, 21 or 22, or all of them, under the conditions laid down therein.

Amendment 200 #

Proposal for a regulation
Article 19 – paragraph 1

1. Where ~~the~~a semiconductor 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.

Amendment 201 #

Proposal for a regulation
Article 19 – paragraph 2

2. The Commission may, after consulting the European Semiconductor Board and with representative organisations of undertakings operating along the semiconductor supply chain, limit the measures provided for in Articles 21 and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis.

Amendment 202 #

Tom VANDENKENDELAERE

Proposal for a regulation
Article 19 – paragraph 2

2. The Commission ~~may~~shall, after consulting the European Semiconductor Board, clearly limit the measures provided for in Articles 20, 21 and 22 to certain crisis-relevant products and certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis.

Amendment 203 #

Proposal for a regulation
Article 19 – paragraph 2

2. The Commission ~~may, after consulting the European Semiconductor Board,~~shall limit the measures provided for in Articles 21 and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis.

Amendment 204 #

Proposal for a regulation
Article 19 – paragraph 3 – point a

(a) assess and, quantify or, in the absence of sufficient information, duly estimate the impact of the possible imposition of protective measures, including in particular whether the market situation corresponds to a significant shortage of an essential product pursuant to Regulation 2015/479 and provide an opinion to the Commission;

Amendment 205 #

Proposal for a regulation
Article 19 – paragraph 3 – point a

(a) assess the impact of the possible imposition of protective measures and if it is really absolutely necessary, including in particular whether the market situation corresponds to a significant shortage of an essential product pursuant to Regulation 2015/479 and provide an opinion to the Commission;

Amendment 206 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Virginie JORON, Markus BUCHHEIT, Jean-Lin LACAPELLE

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, such as public health, or economic activities in the Union and must be in the best interest of the Union. The use of these measures shall avoid placing disproportionate administrative burden on SMEs.

Amendment 207 #

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 strategic economic activities in the Union and must be in the best interest of the Union. The use of these measures shall avoid placing disproportionate administrative burden on SMEs.

Amendment 208 #

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 placing disproportionate administrative burden on undertakings, especially on SMEs.

Amendment 209 #

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 critical entities or other vital societal function~~s or economic activitie~~s in the Union and must be in the best interest of the Union. The use of these measures shall avoid placing disproportionate administrative burden on SMEs.

Amendment 210 #

Proposal for a regulation
Article 19 – paragraph 5

5. The Commission shall regularly inform the European Parliament and the Council of any measures taken in accordance with paragraph 1 and explain the reasons of its decision while taking into account the professional or other relevant secrecy.

Amendment 211 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON

Proposal for a regulation
Article 19 – paragraph 6

6. The Commission ~~may~~shall, after consulting the European Semiconductor Board, issue guidance on the implementation and the use of the emergency measures.

Amendment 212 #

Proposal for a regulation
Article 19 – paragraph 6

6. The Commission ~~may~~shall, after consulting the European Semiconductor Board, issue guidance on the implementation and the use of the emergency measures.

Amendment 213 #

Proposal for a regulation
Article 22 – paragraph 1

Amendment 214 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

Proposal for a regulation
Article 22 – paragraph 1

Amendment 215 #

Proposal for a regulation
Article 22 – paragraph 1

Amendment 216 #

Proposal for a regulation
Article 22 – paragraph 1

Amendment 217 #

Proposal for a regulation
Article 22 – paragraph 2

2. The Commission shall, in consultation with the European Semiconductor Board, assess the utility, necessity and proportionality of the request in order to address supply disruptions of semiconductors during a crisis. The Commission shall inform the Member States concerned and the European Semiconductor Board about the reasons for refusing to follow a request no later than 7 days from receipt of notification. Where the Commission intends not to follow the request, it shall inform the Member States concerned and the European Semiconductor Board and give reasons for its refusal.

Amendment 218 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

Proposal for a regulation
Article 22 – paragraph 2

2. The Commission shall, in consultation with the European Semiconductor Board, assess the utility, necessity and proportionality of the request and its relevance in order to resolve the supply disruptions of semiconductors during the crisis. Where the Commission intends not to follow the request, it shall inform the Member States concerned and the European Semiconductor Board and give reasons for its refusal.

Amendment 219 #

Proposal for a regulation
Article 22 – paragraph 2

2. The Commission shall, in consultation with the European Semiconductor Board, assess the utility, necessity and proportionality of the request. Where the Commission intends not to follow the request, it shall inform the Member States concerned and the European Semiconductor Board without undue delay and give reasons for its refusal.

Amendment 220 #

Amendment 221 #

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 organise in detail the common purchasing referred to in paragraph 1 and shall include provisions on the further use of the purchased products.

Amendment 222 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

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 for its own procurement. In particular, special attention shall be paid to an appropriate integration of environmental, social and labour requirements into public procurement procedures, as well as on the principles of equal treatment and transparency, as stated in the current Financial Regulation as well as in the Directives 2014/24/EU and 2014/25/UE on public procurement. The Commission may have the ability and responsibility, on behalf of all participating Member States, to enter into contracts with economic operators, including individual producers of crisis- relevant products, concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result.

Amendment 223 #

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 for its own procurement. The Commission may have the ability and responsibility, on behalf of all participating Member States, to enter into contracts with economic operators, including individual producers of crisis- relevant products, concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result. The Commission shall keep Member States duly informed of the progress of the procurement procedure.

Amendment 224 #

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 for its own procurement. The Commission ~~may~~shall have the ability and responsibility, on behalf of all participating Member States, to enter into contracts with economic operators, including individual producers of ~~crisis- relevant~~essential products, concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result.

Amendment 225 #

Proposal for a regulation
Article 22 – paragraph 5

5. Where the procurement of ~~crisis- relevant~~essential products includes financing from the Union budget, specific conditions may be set out in specific agreements with economic operators.

Amendment 226 #

Proposal for a regulation
Article 22 – paragraph 6

6. The Commission shall carry out the procurement procedures and conclude the contracts with economic operators on behalf of the participating Member States not later than five months after receiving the request stated in paragraph 1 of this Article. The Commission shall invite the participating Member States to appoint representatives to take part in the preparation of the procurement procedures. The deployment and use of the purchased products shall remain the responsibility of the participating Member States.

Amendment 227 #

Proposal for a regulation
Article 22 – paragraph 6

6. The Commission shall carry out the procurement procedures and conclude the contracts with economic operators on behalf of the participating Member States. The Commission shall invite the participating Member States to appoint representatives to take part in the preparation of the procurement procedures. The deployment and use of the purchased products shall remain the responsibility of the participating Member States in line with its proclaimed intended use.

Amendment 228 #

Proposal for a regulation
Article 22 – paragraph 6 a (new)

6 a. By [18 months after entering into force of this Regulation], the Commission shall assess whether, in view of regulatory, technical and market development, it is appropriate, effective, proportionate and justified to establish Common purchasing tool, and, where appropriate, shall amend or terminate this article for that purpose, accompanied by an impact assessment including quantified cost-benefit analysis and an external study.

Amendment 229 #

Proposal for a regulation
Article 22 – paragraph 6 a (new)

6 a. Where the Commission is empowered to act as central purchasing body, Member States shall not engage in parallel negotiations with the same entities.

Amendment 230 #

Proposal for a regulation
Article 22 – paragraph 6 b (new)

6 b. A high degree of transparency shall be applied to all joint procurement activities and related purchase agreements; The European Court of Auditors shall have full access to all relevant documents and communications to provide accurate annual scrutiny of signed contracts and public investment.

Amendment 231 #

Proposal for a regulation
Article 22 – paragraph 6 c (new)

6 c. The Commission must ensure all joint procurement contracts are made available to the public and accessible on Commission’s website within 30 days after signing of the contract. Information disclosed for public scrutiny shall include: (a) the amount of public investment paid to the contractor, broke down by cost structure of the product; (b) price per unit of the product; (c) number of product units to be delivered and agreed delivery dates; (d) number and location of the product’s manufacturing sites; (e) arrangements related to product donations, intellectual property and technology transfer within the Union and with third countries; (f) product liability clauses and compensation for any damage caused by the product; (g) terms and conditions related to the breach of the contracts and their termination.

Amendment 232 #

Proposal for a regulation
Article 23 – paragraph 2 – point d

(d) ~~addressing monitor~~monitoring and crisis response issues Union and global semiconductor supply chaings and crisis response issues in the EU Single Market;

Amendment 233 #

Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)

(d a) provide a forum of cooperation, coordination and information exchange between Member States, between Member Sates and the Commission and between the Union and third-country partners, to help better monitor the EU and global supply semiconductor chains and trends that impact the Union, including through information gathering and crisis assessment;

Amendment 234 #

Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)

(d a) cooperating with the Commission for the purpose of value chain transparency efforts, business monitoring of their supply chain and the global strategic mapping exercise;

Amendment 235 #

Proposal for a regulation
Article 26 – paragraph 4

4. Each Member State shall notify the Commission of the designation of the national competent authority not later than 60 days after entering into force of this Regulation and, where applicable, the reasons for designating more than one national competent authority, and the national single point of contact, including their precise tasks and responsibilities under this Regulation, their contact information and any subsequent changes thereto.

Amendment 236 #

Proposal for a regulation
Article 26 – paragraph 6

6. Member States shall ensure that national competent authorities, whenever appropriate, and in accordance with Union and national law, consult and cooperate with other relevant national authorities, as well as with relevant interested parties. The Commission shall facilitate the regular exchange of experience between national competent authorities.

Amendment 59 #

Proposal for a regulation
–

The Committee on Internal Market and Consumer Protection calls on the Committee on Industry, Research and Energy, as the committee responsible, to propose rejection of 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).

Amendment 60 #

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, supporting ecodesign, strengthening the capabilities of the Union’s semiconductor supply chain, and increasing cooperation among the Member States and the Commission.

Amendment 61 #

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies by working towards one pan-European ecosystem for semiconductors in the EU Single Market with pooled knowledge, expertise, resources and existing strengths in order to strengthen the Union’s position in a global interdependent semiconductors supply chain.

Amendment 62 #

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the ~~need for~~green transition as well as sustainability needs. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies, while restoring the European global leadership in semiconductors global ecosystem.

Amendment 63 #

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability within the context of the ecological transition. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies.

Amendment 64 #

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to e~~nsure the adjustment of the industry~~valuate the industry competitiveness and to structural changes due to fast innovation cycles and the need for sustainability of supply and production. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies.

Amendment 65 #

Proposal for a regulation
Recital 3

Amendment 66 #

Proposal for a regulation
Recital 3 a (new)

(3 a) The resilience of the Internal market should be built up on Union's key strengths in the global semiconductor ecosystem and cutting red tape for businesses active in the semiconductor supply chain, rather than by selecting a Union's semiconductor winners. The regulation cannot isolate European businesses, but help them establish business relationships with other global participants in the semiconductor ecosystem.

Amendment 67 #

Proposal for a regulation
Recital 3 b (new)

(3 b) The internal market's resilience should also consider other factors, such as the demand side of the semiconductor market, long-term sustainability of production, and the resilience price premium. The Commission should analyse the key drivers of resilience and assess the optimal level of resilience effectively delivering the added value for consumers and businesses.

Amendment 68 #

Proposal for a regulation
Recital 5

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning of the internal market. The only way to strengthen the European semiconductor market in a global interdependent semiconductor supply chain is to work towards a pan-European ecosystem within the EU Single Market where knowledge, expertise, resources and existing strengths are pooled. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty in order to develop a strong internal market for semiconductors. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain.

Amendment 69 #

Proposal for a regulation
Recital 5

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning of the internal market. Given the wide circulation of semiconductor products across borders, the resilience ~~and security~~ of supply of semiconductors can be ~~best~~ addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain. Given the lack of the impact assessment accompanying the Commission proposal and proposed untested method of subsidizing production, the Commission should regularly and carefully publish and deliver relevant information and assessments about the impact of this regulation on internal market, competitiveness and the EU and national budgets.

Amendment 70 #

Proposal for a regulation
Recital 5

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning and improvement of the internal market. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain without distorting the internal market level playing field.

Amendment 71 #

Proposal for a regulation
Recital 5

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning of the internal market. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform and efficient to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain.

Amendment 72 #

Proposal for a regulation
Recital 27

Amendment 73 #

Proposal for a regulation
Recital 27

(27) The internal market would greatly benefit from common standards for green, trusted and secure chips. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet the highest green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. Particular attention should be paid to the development of sustainable practices in the manufacturing of chips in Europe. Comprehensive monitoring and due diligence requirements at all stages of the value chain should allow on one hand to curb, mitigate and aim to nullify the environmental impact, while on the other hand avoid social dumping and ensure respect of International Labour Organization conventions. To that end, the Union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact.

Amendment 74 #

Proposal for a regulation
Recital 27

(27) TIn order to enhance the European semiconductor ecosystem, the internal market would greatly benefit from common European standards for green, trusted and secure chips, based on international standards and with strong involvement of the key market actors. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. To that end, the Union should develop reference certification procedures and, where proportionate and necessary, require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact.

Amendment 75 #

Proposal for a regulation
Recital 27

(27) The internal market would greatly benefit from common standards for green, trusted and secure chips. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. To that end, the Union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact. Device durability, interoperability and sustainability of underlying infrastructure are key prerequisites to ensure that efficiency gains are not cancelled out by short renewal cycles.

Amendment 76 #

Proposal for a regulation
Recital 27

Amendment 77 #

(27 a) Common standards for green chips should adopt a life-cycle assessment approach taking into account all major relevant environmental indicators including resource depletion, carbon emissions, eutrophication, water stress, toxicity, summer smog and local electrical consumption They should include clear and harmonised ecodesign criteria such as use of resources, origin of resources, energy consumption, ease of recycling of materials, use of recycled materials and durability.

Amendment 78 #

Proposal for a regulation
Recital 28

(28) ~~In light of this, t~~The Commission, in consultation with the European Semiconductor Board~~, should prepar~~ and relevant stakeholders, should assess and evaluate the ~~groun~~need for a certification of ~~green, trusted and secure~~ chips and embedded systems that rely on or make extensive use of semiconductor technologies. In particular, they should discuss and identify the relevant sectors and products in need of such certification. The added value of the Union certification should be quantified, accompanied with the cost-benefit analysis and confirmed by the independent assessment which should be published.

Amendment 79 #

Proposal for a regulation
Recital 28

Amendment 80 #

Proposal for a regulation
Recital 28

(28) In light of this, the Commission, in consultation with the European Semiconductor Board, should identify the relevant sectors and products to prepare the ground for a certification of green, trusted and secure chips ~~and embedded systems~~ that rely on or make extensive use of semiconductor technologies. ~~In particular, they should discuss and identify the relevant sectors and products in need of such certification.~~

Amendment 81 #

Proposal for a regulation
Recital 28

Amendment 82 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

Proposal for a regulation
Recital 29

(29) When assessing and monitoring the market, the distinction should be made between the structural shortage and the short or long term shortage and the fact that the market is growing in cycles of oversupply and shortages. In light of the structural and long term deficiencies of the semiconductor supply chain and the resulting risk of future structural or long term shortages, this Regulation provides instruments for a coordinated approach to assessing, monitoring and effectively tackling possible market disruptions.

Amendment 83 #

Proposal for a regulation
Recital 29

(29) In light of the structural deficiencies of the semiconductor supply chain and the resulting risk of future shortages, this Regulation provides instruments for a coordinated approach to monitoring and effectively tackling possible market disruptions. The long-term objective of the monitoring exercise enshrined under this Regulation should be a shift from crisis mitigation to crisis prevention.

Amendment 84 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

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 coordination with relevant stakeholders, 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,. The monitoring activity shall be targeted and purpose driven in such a way that it would not represent an excessive administrative burden for undertakings nor jeopardize confidentiality requirements .Information collected within the scope of this exercise shall be consistent, comparable at EU level and paced in line with evolving global developments. In this regard the Commission may provide guidance in order to avoid excessive defragmentation in the set-up of national monitoring mechanisms.

Amendment 85 #

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 and supply chain transparency is necessary to increase the ability to mitigate risks that may negatively affect the supply of semiconductors. ~~Member States should monitor the semiconductor value chain focusing on early warning indicators and the availability and integrity of the serv~~Understanding that the complexity of the value chain means that last-minute measures to prevent shortages are impractical, the EU should strive to optimise its risk prevention and strategic planning. To that end, a global strategic mapping of the value chain should inform future industrial policies and ~~goods provided by key market actors, in such a way that it would not represent~~the EU should encourage and fund business strategies and investment, such as diversifications of suppliers, strategic stockpiling, and e~~xcessive administrative burden for undertakings.~~nvironmentally-friendly recycling capacities for electronic waste

Amendment 86 #

Proposal for a regulation
Recital 30

Amendment 87 #

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~~might be helpful to increase the ability to mitigate risks that may negatively affect the supply of semiconductors. Member States 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 88 #

Proposal for a regulation
Recital 30

(30) Due to the complex, quickly evolving, vulnerable 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 should monitor the semiconductor value chain, without exposing the undertakers to excessive administrative burden. Member States should focus~~ing~~ 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 89 #

Proposal for a regulation
Recital 33

Amendment 90 #

Proposal for a regulation
Recital 34

(34) Member States should alert the Commission if relevant factors indicate a potential semiconductor crisis and, if feasible, evaluate and quantify the risk of the potential semiconductor crises and its impact on the Internal market. In order to ensure a coordinated response to address such crises, the Commission should upon the alert by a Member State or through other sources, including information from international partners, convene an extraordinary meeting of the European Semiconductor Board for assessing the need to activate the crisis stage and for discussing whether it may be appropriate, necessary and proportionate for Member States to carry out coordinated joint procurement. In case the joint procurement is considered, the Commission should evaluate and prepare a cost-benefit analysis of how the joint procurement measure helps in mitigating the risks and improving the resilience of the internal market. The Commission should engage in consultations and cooperation with relevant third countries with a view to addressing any disruptions in the international supply chain, in compliance with international obligations and without prejudice to procedural requirements under the Treaty on international agreements.

Amendment 91 #

Marco CAMPOMENOSI, Alessandra BASSO, Isabella TOVAGLIERI, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

Proposal for a regulation
Recital 35

(35) As part of the monitoring, national competent authorities should also do a mapping of undertakings operating in the Union along the semiconductor supply chain established in their national territory and notify this information to the Commission. The Commission should use this information to perform a full Union wide mapping exercise which in particular examines the cross-border elements of the Union’s semiconductor ecosystem and interlinkages with third countries. This mapping should amongst others focus on high dependencies and possible bottlenecks in the global supply chain.

Amendment 92 #

Proposal for a regulation
Recital 35

(35) As part of the monitoring, national competent authorities should also do a mapping of undertakings operating in the Union along the semiconductor supply chain established in their national territory and notify this information to the Commission. Strategic mapping shall complement the monitoring activity under this Regulation and should serve the objective of understanding long-term interdependencies across the supply chain.

Amendment 93 #

Proposal for a regulation
Recital 35

Amendment 94 #

Proposal for a regulation
Recital 36

(36) In order to facilitate effective monitoring, in-depth assessment of the risks associated with different stages of the semiconductor value chain is needed, including on the origins and sources of supplies beyond the Union. Such risks may be related to critical inputs and equipment for the industry, including digital products that may be vulnerable, possible impact of counterfeit semiconductors, manufacturing capacities and other risks that may disrupt, compromise or negatively affect the supply chain. Those risks could include supply chains with a single point of failure or which are otherwise highly concentrated. Other relevant factors could include the availability of substitutes or alternative sources for critical inputs and resilient and sustainable transport. The Commission should, assisted by the European Semiconductor Board and taking also into account information received from the main user categories, develop a Union level risk assessment on the basis of several indicators, some of which related to the social and environmental impact of the whole semiconductors supply chain, particularly when sourced outside of the Union, which could have significant environmental consequences in the countries concerned..

Amendment 95 #

Proposal for a regulation
Recital 36

Amendment 96 #

Marco CAMPOMENOSI, Alessandra BASSO, Markus BUCHHEIT, Virginie JORON, Jean-Lin LACAPELLE

Proposal for a regulation
Recital 37

(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, assisted by the European Semiconductor Board, identify early warning indicators inand develop a list of these indicators as part of the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. Member States should monitor these early warning indicators. Industry stakeholders should be encouraged to do the same. The European Semiconductor Board and the Commission should establish mechanisms to provide guidance to industry on monitoring and reporting, in particular to start-ups and SMEs.

Amendment 97 #

Proposal for a regulation
Recital 37

(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, assisted by the European Semiconductor Board, identify early warning indicators in the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. Member States should monitor these early warning indicators. A strong involvement of the industry in the monitoring of identified indicators should be a prerequisite for earlier qualitative assessment and simulation of potential shortages.

Amendment 98 #

Proposal for a regulation
Recital 37

(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, assisted by the European Semiconductor Board, identify early warning indicators in the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. Member States should monitor these early warning indicators. based on available information cooperating with businesses on a voluntary basis. The indicators should be published and regularly reviewed.

Amendment 99 #

Proposal for a regulation
Recital 37

(37) In order to forecast, prevent and prepare for future disruptions of the different stages of the semiconductor value chain in the Union, the Commission should, assisted by the European Semiconductor Board and key industrial players, identify early warning indicators in the Union risk assessment. Such indicators could include the availability, and environmental sustainability, of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the human rights of workers in extractive industries, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. Member States should monitor these early warning indicators.

source: 735.486

2022/10/18 INTA 266 amendments...

Amendment 100 #

Proposal for a regulation
Recital 13

(13) In order to overcome the limitations of the current fragmented public and private investments efforts, facilitate integration, cross-fertilisation, and return on investment on the ongoing programmes and to pursue a common strategic Union vision on semiconductors as a means to realising the ambition of the Union and of its Member States to ensure a leading role in the digital economy, the Chips for Europe Initiative should facilitate better coordination and closer synergies between the existing funding programmes at Union and national and, where applicable, regional levels, better coordination and collaboration with industry and key private sector stakeholders and additional joint investments with Member States. The implementation set up of the Initiative is built to pool resources from the Union, Member States and third countries associated with the existing Union Programmes, as well as the private sector. The success of the Initiative can therefore only be built on a collective effort by Member States, with the Union, to support both the significant capital costs and the wide availability of virtual design, testing and piloting resources and diffusion of knowledge, skills and competences. Where appropriate, in view of the specificities of the actions concerned, the objectives of the Initiative, specifically the ‘Chips Fund’ activities, should also be supported through a blending facility under the InvestEU Fund. The concepts and goals of this Regulation should be supported with significant new financial provisions for the design, experimentation, and testing of advanced and evolving existing and complementary technologies and products within the Union's semiconductor industry.

Amendment 101 #

Proposal for a regulation
Recital 13

(13) In order to overcome the limitations of the current fragmented public and private investments efforts, facilitate integration, cross-fertilisation, and return on investment on the ongoing programmes and to pursue a common strategic Union vision on semiconductors as a means to realising the ambition of the Union and of its Member States to ensure a leading role in the digital economy, the Chips for Europe Initiative should facilitate better coordination and closer synergies between the existing funding programmes at Union and national levels, better coordination and collaboration with industry and key private sector stakeholders and additional joint investments with Member States. The implementation set up of the Initiative is built to pool resources from the Union, Member States and ~~third countrie~~strategic partners associated with the existing Union Programmes, as well as the private sector. The success of the Initiative can therefore only be built on a collective effort by Member States, with the Union, to support both the significant capital costs and the wide availability of virtual design, testing and piloting resources and diffusion of knowledge, skills and competences, and support in patenting the results. Where appropriate, in view of the specificities of the actions concerned, the objectives of the Initiative, specifically the ‘Chips Fund’ activities, should also be supported through a blending facility under the InvestEU Fund.

Amendment 102 #

Proposal for a regulation
Recital 14

(14) Support from the Initiative should be used to address market failures or sub- optimal investment situations in a proportionate manner, and actions should not duplicate or crowd out private financing or distort competition in the internal market. Actions should have a clear added value for the Union. These market failures may arise from diverse and complex events across the semiconductor supply chain, as we have seen during the COVID-19 pandemic and the overreliance of the Union on key production steps in this supply chain. Market failures therefore encompass internalities such as asymmetric information among some stakeholders of the supply chain; externalities costs or benefits transmitted between economic agents, without an agreed transaction between them; imperfections of competition, such as deviations or distortions due to market power; or the involvement of public goods from either intra-European public stakeholders or third countries over subsidising their own agents, and such involvement is characterised by non appropriability of adequate revenues and non-excludability in consumption.

Amendment 103 #

Proposal for a regulation
Recital 14 a (new)

(14 a) Such market failures and/or sub- optimal investment situations should be accordingly defined by the Commission with the assistance of the European Semiconductor Board.

Amendment 104 #

Proposal for a regulation
Recital 15

(15) The Initiative should build upon the strong knowledge base and enhance synergies with actions currently supported by the Union and Member States and regions through programmes and actions in research and innovation in semiconductors and in developments of part of the supply chain, in particular Horizon Europe and the Digital Europe programme established by Regulation (EU) 2021/694 of the European Parliament and of the Council54 with the aim by 2030, to reinforce the Union as global player in semiconductor technology and its applications, with a growing global share in manufacturing. Complementing those activities, the Initiative would closely collaborate with other relevant stakeholders, including with the Industrial Alliance on Processors and Semiconductor Technologies. _________________ 54 Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing the Digital Europe Programme and repealing Decision (EU) 2015/2240. (OJ L 166, 11.5.2021, p. 1).

Amendment 105 #

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. The ECIC should also be able to assist source semiconductor materials from their original sources as well as from other sources, and to assist in the development of recycled semiconductors. 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, like regions, local entities, or specialised academic institutions. 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 106 #

Catharina RINZEMA, Dita CHARANZOVÁ, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Recital 19

Amendment 107 #

Proposal for a regulation
Recital 19

Amendment 108 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Recital 20

(20) Where an Open EU Foundry offers production capacity to undertakings not related to the operator of the facility, the Open EU Foundry should establish, implement and maintain adequate and effective functional separation in order to prevent the exchange of confidential information between internal and external production. This should apply to any information gained in the design and in the front-end or back-end manufacturing processes including trade secrets or content protected by intellectual property rights.

Amendment 109 #

Proposal for a regulation
Recital 20

(20) Where an Open EU Foundry offers production capacity to undertakings not related to the operator of the facility, the Open EU Foundry should establish, implement and maintain adequate and effective functional separation in order to prevent the exchange of confidential information between internal and external production. This should apply to any information gained in the design and in the front-end or back-end manufacturing processes. and, where relevant, the ability to contribute to global supply.

Amendment 110 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Recital 24

(24) To allow for a uniform and transparent procedure to attain recognition as an Integrated Production Facility and Open EU Foundry, the recognition decision should be adopted by the Commission following the application by an individual undertaking or a consortium of several undertakings. To account for the importance of a coordinated and cooperated implementation of the planned facility, the Commission should take into account in its assessment the readiness of the Member State or Member States where the applicant intends to establish its facilities to support the set-up. Furthermore, when assessing the viability of the business plan, the Commission could take into account the overall record of the applicant. In light of the privileges attached to recognition as an Integrated Production Facility or Open EU Foundry, the Commission should monitor whether facilities that have been granted this status continue to comply with the criteria set out in this Regulation. To that end, both Integrated Production Facilities and Open EU Foundries should seek and establish joint ventures, both between participants having the same label, and between these two labels.

Amendment 111 #

Proposal for a regulation
Recital 28

(28) In light of this, the Commission, in consultation with the European Semiconductor Board, should prepare the ground for a certification of green, trusted and secure chips and embedded systems that rely on or make extensive use of semiconductor technologies. In particular, they should discuss and identify the relevant sectors and products in need of such certification, taking into account existing international standards and the need to ensure the sufficient involvement of stakeholders across the semiconductor value chain and carried out in an open access.

Amendment 112 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Recital 29

(29) In light of the structural deficiencies of the semiconductor supply chain and the resulting risk of future shortages, this Regulation provides instruments for a coordinated approach to monitoring and effectively tackling possible market disruptions and related impact on the competitiveness of European industry. The long term objective of the monitoring exercise enshrined under this Regulation should be a shift from crisis mitigation to crisis prevention. .

Amendment 113 #

Proposal for a regulation
Recital 29

(29) In light of the ~~structural deficiencies~~complexity of the semiconductor supply chain and the ~~resulting~~ risks of future shortages, this Regulation provides instruments for a coordinated approach to monitoring and effectively tackling possible market disruptions.

Amendment 114 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

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 coordination with the relevant stakeholders, 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,. The monitoring activity shall be targeted and purpose driven in such a way that it would not represent an excessive administrative burden for undertakings nor jeopardize confidentiality requirements. Information collected within the scope of this exercise shall be consistent,comparable at EU level and paced in line with evolving global developments. In this regard the Commission may provide guidance in order to avoid excessive defragmentation in the set-up of national monitoring mechanisms.

Amendment 115 #

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 understanding of the value chain as well as the ability to mitigate risks that may negatively affect the supply of semiconductors. The Commission and Member States 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 116 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Recital 30 a (new)

(30 a) Given that this Regulation will impose additional compliance costs on the sector, action needs to be taken to prevent the total level of regulatory burden from increasing. The Commission should therefore be obliged to present, before the application of this Regulation, proposals offsetting the regulatory burdens introduced by this Regulation, through the revision or abolishment of provisions in other Union legislative acts that generate compliance costs for the semiconductor sector.

Amendment 117 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Recital 30 a (new)

(30 a) The Commission should assess and monitor the actual or potential adverse human rights and environmental impact in the semiconductor supply chain that have been or should have been identified in accordance with applicable Union legislation or Member States legislation setting out due diligence and reporting requirements on corporate sustainability.

Amendment 118 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ

Proposal for a regulation
Recital 31

(31) Any relevant findings, including information provided by relevant stakeholders and industry associations, should be provided to the European Semiconductor Board to allow for a regular exchange of information between high- level representatives of Member States and for integration of the information into a monitoring overview of the semiconductor value chains. The European Semiconductor Board should also take into account the objectives of the EU Critical Raw Materials Initiative as part of its supply chain monitoring, which should include impact assessments of any relocation of raw materials and component suppliers operating outside of the Union.

Amendment 119 #

Proposal for a regulation
Recital 31

(31) ~~Any relevant findings, including information provided by relevant stakeholders and industry associations, sh~~Findings that are relevant for the purpose of mitigating risks and/or signalling disruptions in the supply chain could be provided to the European Semiconductor Board to allow for a regular exchange of information between high- level representatives of Member States and for integration of the information into a monitoring overview of the semiconductor value chains.

Amendment 120 #

Proposal for a regulation
Recital 32

(32) It is important to take into account the specific insights into the supply situation of users of semiconductors. Therefore, Member States should identify and regularly exchange with the main user categories on their national markets. Furthermore, Member States should offer the possibility for relevant stakeholder organisations, including industry associations and representatives of the main user categories, to provide information regarding significant changes in demand and supply, and known disruptions of their global supply chain, this could include the unavailability of critical semiconductors or raw materials, longer than average lead-time, delays in delivery and exceptional price surges.

Amendment 121 #

Proposal for a regulation
Recital 32 a (new)

(32 a) Regarding raw materials necessary for the production and fabrication of semiconductors, these range from silicon, germanium and gallium arsenide to silicon carbide. These different semiconductor materials are those whose electrical connectivity falls between that of an insulator and a conductor. They are able to manipulate their behaviour by introducing impurities into their crystal structure, known as doping. Semiconductor devices may be discrete in nature, such as transistors and diodes, or highly interconnected, where a series of electronic circuits are diffused into the surface of a thin slice of semiconductor material, called a wafer, to form an integrated circuit. The chemical purity of the semiconductor material is key to their effective operation.

Amendment 122 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Recital 34

(34) Member States should alert the Commission if relevant factors indicate a potential semiconductor crisis. In order to ensure a coordinated response to address such crises, the Commission should upon the alert by a Member State or through other sources, including information from international partners, convene an extraordinary meeting of the European Semiconductor Board for assessing the need to activate the crisis stage and for discussing whether it may be appropriate, necessary and proportionate for Member States to carry out coordinated joint procurement. The Commission should engage in consultations and cooperation with relevant third countries with a view to addressing any disruptions in the international supply chain, in compliance with international obligations and without prejudice to procedural requirements under the Treaty on international agreements. In a globalised world with international value chains, European resilience is not possible without well-functioning multilateral and bilateral trade agreements. The European openness to trade and investment is a strength and source of growth and resilience for the Union, as a major importer and exporter.

Amendment 123 #

Proposal for a regulation
Recital 34

(34) Member States should alert the Commission if relevant factors indicate a potential semiconductor crisis. In order to ensure a coordinated response to address such crises, the Commission should upon the alert by a Member State or through other sources, including information from international partners, convene an extraordinary meeting of the European Semiconductor Board for assessing the need to activate the crisis stage and for discussing whether it may be appropriate, necessary and proportionate for Member States to carry out coordinated joint procurement. The Commission should engage in permanent and structured consultations and cooperation with relevant third countries with a view to coordinating and cooperating in addressing any disruptions in the international supply chain, in compliance with international obligations and ~~without prejudice to procedural requirements under the Treaty on international agreement~~including by concluding international agreements on resilient supply chains.

Amendment 124 #

Proposal for a regulation
Recital 35

(35) As part of the monitoring, national competent authorities should also do a mapping of undertakings operating in the Union along the semiconductor supply chain established in their national territory and notify this information to the Commission. Strategic mapping shall complement the monitoring activity under this Regulation and should serve the objective of understanding long-term inter dependencies across the supply chain.

Amendment 125 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Amendment 126 #

Proposal for a regulation
Recital 35

(35) As part of the monitoring, national competent authorities should also do a mapping of undertakings operating in the Union along the semiconductor supply chain established in their national territory and notify this information to the Commissionthe European Semiconductor Board should do a long-term mapping of the dynamics, strengths and weaknesses of the semiconductor value chain, including a holistic understanding of the market, the barriers to entry and technology characteristics. Once complete, the mapping could be updated and revised every six months.

Amendment 127 #

Catharina RINZEMA, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Recital 35

Amendment 128 #

Proposal for a regulation
Recital 36

(36) In order to facilitate effective monitoring, in-depth assessment of the risks associated with different stages of the semiconductor value chain is needed, including on the origins and sources of supplies beyond the Union. Such risks may be related to critical inputs and equipment for the industry, including digital products that may be vulnerable, possible impact of counterfeit semiconductors, manufacturing capacities and other risks that may disrupt, compromise or negatively affect the supply chain. Those risks could include supply chains with a single point of failure or which are otherwise highly concentrated. Other relevant factors could include the availability of substitutes or alternative sources for critical inputs and resilient and sustainable transport. The Commission should, assisted by the European Semiconductor Board and taking also into account information received from the main user categories, develop a Union level risk assessment. Moreover, appropriate measures, procedures and remedies must be provided to ensure the availability of civil redress against the unauthorized acquisition or use of trade secrets or copyrighted works embedded in semiconductors.

Amendment 129 #

Proposal for a regulation
Recital 36

Amendment 130 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Recital 37

(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, assisted by the European Semiconductor Board, identify early warning indicators in the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. Member States should monitor these early warning indicators. A strong involvement of the industry in the monitoring of identified indicators should be a prerequisite for earlier qualitative assessment and simulation of potential shortages.

Amendment 131 #

Proposal for a regulation
Recital 37 a (new)

(37 a) In order to increase the Union’s global role in the semiconductors ecosystem and its value chain, due consideration must be paid to the demand for rare earths and critical raw materials and gases. Member States and the Commission should ensure that the Union does not create a new dependency, but rather a sustainable supply chain, in line with the Statement on Critical Raw Materials Act published following the State of the European Union in September 2022.

Amendment 132 #

Proposal for a regulation
Recital 39

(39) Under Article 4 of Regulation (EU) 2019/452 establishing a framework for the screening of foreign direct investments into the Union58 , in determining whether a foreign direct investment is likely to affect security or public order, Member States and the Commission may consider its potential effects on critical technologies and dual use items as defined in p~~oint~~aragraph 1 of Article 2 of ~~Council Regulation (EC) No 428/200959 , including semiconductors~~Regulation (EU)2021/821 of the European Parliament and of the Council setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual- use items, including semiconductors, also with a view to strengthening the Union’s strategic indispensability. _________________ 58 Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union (OJ L 79I , 21.3.2019, p. 1–14). ~~59 Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items (OJ L 134, 29.5.2009, p. 1–269).~~

Amendment 133 #

Proposal for a regulation
Recital 40

(40) As part of the monitoring, Member States could specifically consider the availability and integrity of the services and goods of key markets actors. Such issues cshould be brought to the attention of the European Semiconductor Board by the Member State concerned. The European Semiconductor Board and the Commission should establish mechanisms to provide guidance to industry on monitoring and reporting, in particular to start-ups and SMEs, especially through the Chips Fund Portal.

Amendment 134 #

Proposal for a regulation
Recital 42

(42) The semiconductor crisis stage should be triggered in the presence of concrete, serious, and reliable evidence of such a crisis or threats thereof. A semiconductor crisis occurs in case of serious disruptions to the supply of semiconductors leading to significant shortages which entail significant delays and negative effects on one or more important economic sectors in the Union, either directly or through ripple effects of the shortage, given that the Union’s industrial sectors represent a strong user base of semiconductors. Alternatively or in addition, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which prevent the supply, repair and maintenance of essential products used by critical sectors, for instance medical and diagnostic equipment.

Amendment 135 #

Proposal for a regulation
Recital 42

Amendment 136 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Recital 43

Amendment 137 #

Proposal for a regulation
Recital 44

(44) Close cooperation between the Commission ~~and the Member States~~, Member States industry and research stakeholders, and coordination of any national measures taken with regard to the semiconductor supply chain is indispensable during the crisis stage with a view to addressing disruptions with the necessary coherence, resiliency and effectiveness. To this end, the European Semiconductor Board should hold extraordinary meetings as necessary. Any measures taken should be strictly limited to the duration period of the crisis stage.

Amendment 138 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Recital 44

(44) Close cooperation between the Commission, relevant stakeholders and the Member States and coordination of any national measures taken with regard to the semiconductor supply chain is indispensable during the crisis stage with a view to addressing disruptions with the necessary coherence, resiliency and effectiveness. To this end, the European Semiconductor Board should hold extraordinary meetings as necessary. Any measures taken should be strictly limited to the duration period of the crisis stage.

Amendment 139 #

Proposal for a regulation
Recital 45

(45) Appropriate, effective and proportionate measures should be identified and implemented when the crisis stage is activated without prejudice to possible continued international engagement with relevant partners with the view to mitigating the evolving crisis situation. Where appropriate, the Commission ~~should~~may request information from undertakings along the semiconductor supply chain. Furthermore, the Commission should be able to, where necessary and proportionate~~, oblige~~ request Integrated Production Facilities and Open EU Foundries to accept ~~and prioritise~~ an order of the production of crisis-relevant products, and to act as a central purchasing body when mandated by Member States. The Commission cshould limit the measures to certain critical sectors. In addition, the European Semiconductor Board ~~may advise on the necessity of introducing an export control regime pursuant to Regulation (EU) 2015/479 of the European Parliament and of the Council60~~ should engage in consultations and cooperation with business representatives and relevant third countries with a view to addressing any disruptions in the international supply chain. The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures ~~should~~must be proportionate, restricted and be carried out in the manner which is the least disruptive to trade and restricted to what is absolutely necessary to address the significant disturbances at stake insofar as this is in the best interest of the Union. The Commission should regularly inform the European Parliament and the Council of the measures taken and the underlying reasons. The Commission may, after consulting with the Board, issue further guidance on the implementation and use of the emergency measures. ~~_________________ 60 Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34).~~

Amendment 140 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Recital 45

(45) Appropriate, effective and proportionate measures should be identified and implemented when the crisis stage is activated without prejudice to possible continued international engagement with relevant partners with the view to mitigating the evolving crisis situation. Where appropriate, the Commission should request information from undertakings along the semiconductor supply chain. Furthermore, the Commission should be able to, where necessary and proportionate, oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of the production of crisis-relevant products, and to act as a central purchasing body ~~when mandated by Member States~~, following a delegated act. The Commission could limit the measures to certain critical sectors. In addition, the European Semiconductor Board may advise on the necessity of introducing an export control regime pursuant to Regulation (EU) 2015/479 of the European Parliament and of the Council60 . The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures should be proportionate and restricted to what is necessary to address the significant disturbances at stake insofar as this is in the best interest of the Union. The Commission should regularly inform the European Parliament and the Council of the measures taken and the underlying reasons. The Commission may, after consulting with the Board, issue further guidance on the implementation and use of the emergency measures. _________________ 60 Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34).

Amendment 141 #

Proposal for a regulation
Recital 46

(46) A number of sectors are critical for the proper functioning of the internal market and preserving the competitiveness of European industries. Those critical sectors are the sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities61 [2]. For the purposes of this Regulation, defence, telecommunication, and other activities that are relevant for public safety and security should be additionally considered as a critical sector. Sectors critical to the economic well-being of Europe, such as the automotive sector, should also be considered. Certain measures should only be enacted fuor the purpose of securing supply to critical sectors. The Commission may limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation. ~~_________________ 61 COM(2020) 829. 16.12.2020.~~

Amendment 142 #

Catharina RINZEMA, Dita CHARANZOVÁ, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Recital 46

(46) A number of sectors are critical for the proper functioning of the internal market and to preserve the competitiveness of European industries. Those critical sectors are the sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities61 . For the purposes of this Regulation, defence, automotive and other activities that are relevant for public safety and security should be additionally considered as a critical sector. Certain measures should only be enacted fur the purpose of securing supply to critical sectors. The Commission may limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation. _________________ 61 COM(2020) 829. 16.12.2020.

Amendment 143 #

Proposal for a regulation
Recital 46

(46) A number of sectors are critical for the proper functioning of the internal market. Those critical sectors are the sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities61 . For the purposes of this Regulation, defence and other activities that are relevant for public safety and security should be additionally considered as a critical sector. Certain measures should only be enacted fur the purpose of securing supply to critical sectors in a crisis stage. The Commission ~~may~~should limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation. _________________ 61 COM(2020) 829. 16.12.2020.

Amendment 144 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Recital 47

(47) The purpose of requests for information from undertakings along the semiconductor supply chain established in the Union in the crisis stage is an in-depth assessment of the semiconductor crisis in order to identify potential mitigation or emergency measures at Union or national level. Such information may include production capability, production capacity and current primary disruptions and bottlenecks. These aspects could include the typical and current actual stock of crisis-relevant products in its production facilities located in the Union and third country facilities which it operates or contracts or purchases supply from; the typical and current actual average lead time for the most common products produced; the expected production output for the following three months for each Union production facility; reasons that prevent the filling of production capacity; or other existing data necessary to assess the nature of the semiconductor crisis or potential mitigation or emergency measures at national or Union level. Any request should be proportionate, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, as well as set out appropriate time limits for providing the requested information. Undertakings should ~~be obliged to~~ comply with the request ~~and may be subject to penalties i~~. If they fail to comply or provide incorrect information without any reasonable explanation given, may be subject to penalties. Any information acquired should be subject to confidentiality rules. Should an undertaking be subject to a request for information related to its semiconductor activities from a third country, it should inform the Commission so to enable an assessment whether an information request by the Commission is warranted. The request of information must be used restrictively and executed in a manner that minimise administrative and regulatory burdens, by clearly stating what kind of information is absolutely necessary. The Commission must always take into consideration the administrative burden and the consequences of hampering innovation capacity and risk of trade escalations with third countries.

Amendment 145 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Recital 47

(47) The purpose of requests for information from undertakings along the semiconductor supply chain established in the Union in the crisis stage is an in-depth assessment of the semiconductor crisis in order to identify potential mitigation or emergency measures at Union or national level and to drive towards the autonomy from extra-EU suppliers. Such information may include production capability, production capacity and current primary disruptions and bottlenecks. These aspects could include the typical and current actual stock of crisis-relevant products in its production facilities located in the Union and third country facilities which it operates or contracts or purchases supply from; the typical and current actual average lead time for the most common products produced; the expected production output for the following three months for each Union production facility; reasons that prevent the filling of production capacity; or other existing data necessary to assess the nature of the semiconductor crisis or potential mitigation or emergency measures at national or Union level. Any request should be proportionate, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, as well as set out appropriate time limits for providing the requested information. Undertakings should be obliged to comply with the request and may be subject to penalties if they fail to comply or provide incorrect information. Any information acquired should be subject to confidentiality rules. Should an undertaking be subject to a request for information related to its semiconductor activities from a third country, it should inform the Commission so to enable an assessment whether an information request by the Commission is warranted.

Amendment 146 #

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~~may on a voluntary basis accept and prioritise orders of crisis-relevant products. This obligation may also be extended to semiconductor manufacturing facilities which have accepted such possibility in the context of receiving public support. The decision on a priority rated order should be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case. The priority rating obligation should take precedence over any performance obligation under private or public law while it should have regard for the legitimate aims of the undertakings and the cost and effort required for any change in production sequence. Undertakings may be subject to penalties if they fail to comply with the obligation for priority rated orderse decision should be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case.

Amendment 147 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Recital 49

(49) The undertaking concerned should on a voluntary basis be oabl~~iged~~e to accept and prioritise a priority rated order. In exceptional and duly justified cases, the undertaking could request the Commission to review the imposed obligation. This applies either where the facility is unable to fulfil the order even if prioritised, be it due to insufficient production capability or production capacity, or because this would place an unreasonable economic burden and entail particular hardship on the facility.

Amendment 148 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

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 should inform the Commission of this request, so as to inform an assessment of whether, if there is a significant impact on the security of supply to critical sectors, and the other requirements of necessity, proportionality and legality are satisfied in the circumstances of the case~~, the Commission should likewise enact a priority rated order obligation~~.

Amendment 149 #

Proposal for a regulation
Recital 50

Amendment 150 #

Proposal for a regulation
Recital 53

(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. Where appropriate, regions, local entities, or coalitions or associations of the former, should be able to demand their respective Member States to mandate it. The mandate could authorise the Commission to enter into agreements concerning the purchase of crisis-relevant products for certain critical sectors. The Commission should assess for each request the utility, necessity and proportionality in consultation with the Board. Where it intends to not follow the request, it should inform the concerned Member States and the Board and give its reasons. Furthermore, the participating Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. The deployment and use of purchased products should remain within the remit of the participating Member States.

Amendment 151 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Recital 54

(54) During a semiconductor shortage crisis, it might become necessary that the Union ~~considers protective measur~~the Union may only consider protective measures if all other measures have been investigated. Protective measures must be avoided at all costs, as they will damage the Union's trade relations and will have unpredictable consequences. The European Semiconductor Board may express its views to inform the Commission’s assessment of whether the market situation amounts to a significant shortage of essential products pursuant to Regulation (EU) 2015/479.

Amendment 152 #

Proposal for a regulation
Recital 55

(55) In order to facilitate a smooth, effective and harmonised implementation of this Regulation, cooperation and the exchange of information, the European Semiconductor Board should be established within the relevant administrative echelons of the Commission. The European Semiconductor Board should provide advice to and assist the Commission on specific questions. These should include providing advice on the Chips for Europe Initiative to the Public Authorities Board of the Chips Joint Undertaking; exchanging information on the functioning of the Integrated Production Facilities and Open EU Foundries; discussing and preparing the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products and addressing coordinated monitoring and crisis response. Furthermore, the European Semiconductor Board should ensure the consistent application of this Regulation, facilitate cooperation between Member States as well as exchange of information on issues relating to this Regulation. The European Semiconductor Board should support the Commission in international cooperation in line with international obligations, including in information gathering and crisis assessment. In addition, the European Semiconductor Board should coordinate, cooperate and exchange information with other Union crisis response and crisis preparedness structures with a view to ensure a coherent and coordinated Union approach as regards crisis response and crisis preparedness measures for semiconductor crises. Finally, at the invitation of the European Semiconductor Board, like-minded international partners, as well as the World Trade Organisation, should be able to attend meetings and exchange information within the structures of the Board.

Amendment 153 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Recital 55

(55) In order to facilitate a smooth, effective and harmonised implementation of this Regulation, cooperation and the exchange of information, the European Semiconductor Board should be established. The implementation of this Regulation must comply with Union law, the WTO Agreement and be consistent with commitments made under other trade and investment agreements to which the Union or the Member States are parties. The European Semiconductor Board should provide advice to and assist the Commission on specific questions. These should include providing advice on the Chips for Europe Initiative to the Public Authorities Board of the Chips Joint Undertaking; exchanging information on the functioning of the Integrated Production Facilities and Open EU Foundries; discussing and preparing the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products and addressing coordinated monitoring and crisis response. Furthermore, the European Semiconductor Board should ensure the consistent application of this Regulation, facilitate cooperation between Member States as well as exchange of information on issues relating to this Regulation. The European Semiconductor Board should support the Commission in international cooperation in line with international obligations, including in information gathering and crisis assessment. In addition, the European Semiconductor Board should coordinate, cooperate and exchange information with other Union crisis response and crisis preparedness structures with a view to ensure a coherent and coordinated Union approach as regards crisis response and crisis preparedness measures for semiconductor crises.

Amendment 154 #

Proposal for a regulation
Recital 56

(56) A representative of the Commission should chair the European Semiconductor Board. Each Member State’s national single point of contact should appoint at least one high-level representative to the European Semiconductor Board. They could also appoint different representatives in relation to different tasks of the European Semiconductor Board, for example, depending on which Chapter of this Regulation is discussed in the meetings of the European Semiconductor Board. The Commission may establish sub-groups and should be entitled to establish working arrangements by inviting experts to take part in the meetings on an ad hoc basis or by inviting organisations representing the interests of the Union semiconductors industry, such as the Industrial Alliance on Processors and Semiconductor Technologies, and social partners in its sub-groups as observers. At regular intervals, and in conjunction with meetings of the European Semiconductor Board, the Commission should hold exchanges of views with the European Parliament on relevant issues pertaining to this Regulation.

Amendment 155 #

Proposal for a regulation
Recital 56

(56) A representative of the Commission should chair the European Semiconductor Board. Each Member State’s national single point of contact should appoint at least one high-level representative to the European Semiconductor Board, whose Secretariat should be part of the Commission administration. They could also appoint different representatives in relation to different tasks of the European Semiconductor Board, for example, depending on which Chapter of this Regulation is discussed in the meetings of the European Semiconductor Board. The Commission may establish sub-groups and should be entitled to establish working arrangements by inviting experts to take part in the meetings on an ad hoc basis or by inviting organisations representing the interests of the Union semiconductors industry, such as the Industrial Alliance on Processors and Semiconductor Technologies, in its sub-groups as observers.

Amendment 156 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Recital 58

(58) Member States hold a key role in the application and enforcement of this Regulation. In this respect, each Member State should designate one or more national competent authorities for the purpose of effective implementation of this Regulation and ensure that those authorities are adequately empowered and resourced. Member States could designate an existing authority or authorities. In order to increase organisation efficiency in the Member States and to set an official point of contact vis-a-vis the public and other counterparts at Member State and Union levels, including the Commission and the European Semiconductor Board, each Member State should designate, within one of the authorities it designated as competent authority under this Regulation, one national single point of contact responsible for coordinating issues related to this Regulation and cross-border cooperation with competent authorities of other Member States. Any breach of this confidentiality should result in a full investigation by the Commission, and if and where necessary, the Commission should revise the practical arrangements and guidance for the treatment of confidential information.

Amendment 157 #

Proposal for a regulation
Recital 59

(59) In order to ensure trustful and constructive cooperation of competent authorities at Union and national level, all parties involved in the application of this Regulation should respect the confidentiality of information and data, including trade secrets or content protected by intellectual property rights, obtained in carrying out their tasks. 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 should not disclose information acquired or exchanged by them pursuant to this Regulation and of the kind covered by the obligation of professional secrecy. This should also apply to the European Semiconductor Board and the Semiconductor Committee established in this Regulation. Where appropriate, the Commission should be able to adopt implementing acts to specify the practical arrangements for the treatment of confidential information, including trade secrets or content protected by intellectual property rights, in the context of information gathering.

Amendment 158 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Recital 59 a (new)

(59 a) Innovative businesses are increasingly exposed to unlawful or anticompetitive practices aimed at misappropriating intellectual property and trade secrets, such as theft, unauthorised copying, industrial espionage or the breach of confidentiality requirements from outside the Union, particularly in high-technology fields like the semiconductor sector. Intellectual property theft or the unlawful use of trade secrets in the semiconductor sector could compromise the objectives of the Chips Act by inhibiting the ability of private holders of intellectual property to obtain legitimate first-mover returns from their innovation-related efforts and thus diminish incentives for private investment. In the absence of the effective enforcement of the existing rules for the protection of intellectual property in third countries, incentives to engage in innovation-related activity beyond the borders of the internal market could therefore be undermined. This Regulation should therefore ensure the effective enforcement of intellectual property law in the semiconductor sector, in full respect of Directives (EU) 2016/9431a and 2004/48/EC1b of the European Parliament and of the Council. Furthermore, it introduces stricter terms for beneficiaries for engaging in significant transactions in third countries with an intellectual property theft programme directed at the Union of a Member State.

Amendment 159 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Recital 62

(62) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards the selection of ECICs and as regards the procedure for establishing and defining the tasks of competence centres and the procedure for establishing the network, so that the objectives of the Initiative are achieved. Furthermore, implementing powers should be conferred on the Commission as regards activating the crisis stage in a semiconductor crisis, to allow a rapid and coordinated response, and for specifying the practical arrangements for the treatment of confidential information, including trade secrets or content protected by intellectual property rights. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council64 of the European Parliament and of the Council. _________________ 64 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers, (OJ L 55, 28.2.2011, p. 13).

Amendment 160 #

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism and consultations between the Member States ~~and~~, the Commission and relevant third countries for monitoring the supply of semiconductors and crisis response to semiconductor shortages.

Amendment 161 #

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism between the Member States ~~and the~~, Commission and relevant stakeholders for monitoring the supply of semiconductors and crisis response to semiconductor shortages.

Amendment 162 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

(c) setting up a coordination mechanism between the Member States and the Commission for monitoring the ~~supply~~global supply chains of semiconductors and crisis response to semiconductor shortages.

Amendment 163 #

Proposal for a regulation
Article 2 – paragraph 1 – point 4

(4) ‘semiconductor supply chain’ means the system of activities, organisations, actors, technology, information, resources and services involved in the production of semiconductors, including raw materials, manufacturing equipment, design, fabrication, assembly, testing ~~and packaging~~, packaging, and advanced packaging, including raw materials and gases;

Amendment 164 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

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 the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance. The project shall contribute to a common objective by supporting a strategic value chain and enabling security of supply for the future of the Union's semiconductor industry;

Amendment 165 #

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, or capable of manufacturing materials or equipment exclusively used in semiconductor manufacturing, that is not substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance;

Amendment 166 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 2 – paragraph 1 – point 15

(15) ‘key market actors’ means undertakings in the Union semiconductor sector, located on Union territory, the reliable functioning of which is essential for the semiconductor supply chain;

Amendment 167 #

Proposal for a regulation
Article 2 – paragraph 1 – point 15

(15) ‘key market actors’ means undertakings in the Union semiconductor s~~ector~~upply chain, the reliable functioning of which is essential for the semiconductor supply chain;

Amendment 168 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

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, the defence sector and other activities that are relevant for public safety and security as well as any other activity or sector of strategic economic importance for Member States;

Amendment 169 #

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, the defence sector, telecommunication and other activities that are relevant for public safety and security;, as well as sectors critical wellbeing of Europe eg. automotive.

Amendment 170 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 2 – paragraph 1 – point 16

Amendment 171 #

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 demonstrably prevents the normal functioning of critical sectors in providing essential goods and services to EU citizens;

Amendment 172 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ

Proposal for a regulation
Article 2 – paragraph 1 – point 16 a (new)

(16 a) ‘crisis’ means a serious disruption to the supply of semiconductors due to a marketfailure or a sub-optimal investment situation, leading to a significantshortage of products or services within the supply chain which may result in areal threat to the functioning, health, security and defence of theinfrastructure, economy, institutions, regions, Member States and citizens ofthe Union;

Amendment 173 #

Proposal for a regulation
Article 2 – paragraph 1 – point 16 a (new)

(16 a) ‘crisis’ means a serious and unforeseen event which has a severe impact on the Union and substantially endangers or restricts the security, safety and the public health and alters the normal functioning of society and of the economy, and requires exceptional measures in order to supply the population with critical necessities;

Amendment 174 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 2 – paragraph 1 – point 16 b (new)

(16 b) ‘demonstrably’ means ‘as demonstrated’ by independent experts in their relevant fields in a respective and publicly available report endorsed by the European Commission under the advice of the European Semiconductor Board.

Amendment 175 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17

(17) ‘crisis-relevant product’ means semiconductors, intermediate products and critical raw materials and gases required to produce semiconductors or intermediate products, that are materially affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereof;

Amendment 176 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)

(17 a) (17a) ‘serious disruption’ means a situation that might occur in the case of natural disasters, interruptions in global logistics, shortages in raw material supply or geopolitical constraints.

Amendment 177 #

Proposal for a regulation
Article 2 – paragraph 1 – point 19 a (new)

(19 a) ‘crisis’ means an extraordinary situation of a serious disruption to the supply chain, leading to a severe shortage of semiconductors, which poses serious and immediate danger to the life and health of people or has a substantial and evidence-based impact on the functioning of the Member States and citizens of the Union, which requires proportionate and adequate measures tailored to the specific situation in order to supply the population with critical necessities.

Amendment 178 #

Proposal for a regulation
Article 3 – paragraph 2

2. The Initiative 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~~20 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 179 #

Proposal for a regulation
Article 3 – paragraph 2

2. The Initiative 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~~3 billion and EUR ~~1.65~~3 billion respectively. This funding shall be implemented in accordance with Regulation (EU) No 2021/695 and Regulation (EU) No 2021/694.

Amendment 180 #

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 United Nations' Sustainable Development Goals through the twin digital and green transition.

Amendment 181 #

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 twin digital and green transition~~ primarily with a view to supporting the twin digital and green transition and strengthen the Union’s strategic indispensability.

Amendment 182 #

Proposal for a regulation
Article 4 – paragraph 2 – point a – point 1

(1) building up an innovative and transparent virtual platform, available across the Union, integrating existing and new design facilities with extended libraries and Electronic Design Automation (EDA) tools;

Amendment 183 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2

(2) supporting large scale innovation through access to new or existing pilot lines for experimentation, test, and validation of new design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering sustainable renewable and low carbon energy and electro mobility, lower energy consumption, security, higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies; promoting international cooperation between different chips production technologies with third countries and the Union; encourage and maintain competitiveness by learning from different sectors of the chips industry, as for example, the impact and growth of Micro Electro-Mechanical Systems in Europe.

Amendment 184 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2 a (new)

(2 a) supporting other conducive and complementary technologies to the development of semiconductors, such as quantum technology, the Internet of Things, or Web3;

Amendment 185 #

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 1

(1) strengthen capacities and offer a wide range of expertise, including on patenting and IPRs, to the stakeholders, including end-user SMEs and start-ups, facilitating access to and effective use of the above capacities and facilities;

Amendment 186 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

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. through, inter alia, increasing programmes for attracting third-country talent through initiatives such as the 'EU Talent Pool' and the European Skills Agenda, and seek to streamline market tests in the semiconductor ecosystem to better facilitate attracting and developing skills to realise the objectives of this Regulation; with an emphasis on support for academic and reskilling programmes and qualification, up to Master and PhD level in the area of STEM (Science, Technology, Engineering, and Mathematics);

Amendment 187 #

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 2

(2) address the knowledge and 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 on research, design and production.

Amendment 188 #

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 2

(2) address the skills shortage, promote international cooperation, 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.

Amendment 189 #

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 2 a (new)

(2 a) establish joint educational and reskilling ventures and exchanges with like-minded international partners which have developed expertise and efficiency in semiconductor manufacturing;

Amendment 190 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 4 – paragraph 2 – point e – point 3

(3) accelerating and improving accessibility to investment in the field of semiconductor manufacturing technologies and chip design and to leveraging funding from both the public and the private sectors, while increasing the security of supply for the whole semiconductor value chain. The Commission shall facilitate clear guidance and access points, especially to SMEs, start-ups, or scale-ups in accessing public and private funds.

Amendment 191 #

Proposal for a regulation
Article 4 – paragraph 2 – point e – point 3

(3) accelerating investment in the field of semiconductor manufacturing technologies and chip design and to leveraging funding from both the public and the private sectors, while increasing the security of supply and intellectual property protection for the whole semiconductor value chain.

Amendment 192 #

Proposal for a regulation
Article 4 – paragraph 2 – point e a (new)

(e a) improving the cooperation with third country partners aiming at strengthening partnerships through the establishment of resilient supply chain agreements and initiatives.

Amendment 193 #

Proposal for a regulation
Article 5 – paragraph 1 – point e

(e) ‘Chips Fund’ activities for access to debt financing and equity to start-ups, scale-ups, SMEs and other companies in the semiconductor value chain throughout the Union.

Amendment 194 #

Proposal for a regulation
Article 7 – paragraph 1

1. For the purpose of implementing eligible actions and other related tasks funded under the Initiative a European Chips Infrastructure Consortium (‘ECIC’) ~~may~~shall be established under the conditions set out in this Article.

Amendment 195 #

Proposal for a regulation
Article 7 – paragraph 2 – point b

(b) have one or more statutory seats, which shall be located on the territory of one or more Member States, taking into account the geographical diversity of the Union in order to avoid the centralisation of these seats in a determined geographical area of the Union;

Amendment 196 #

Proposal for a regulation
Article 7 – paragraph 2 – point c a (new)

(c a) be able to assist source semiconductor materials from their original sources aswell as from other sources;

Amendment 197 #

Proposal for a regulation
Article 7 – paragraph 2 – point c b (new)

(c b) assist in the development of recycled semiconductors;

Amendment 198 #

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 and specific role and if applicable voting rights of Member States and the Commission, winding-up, reporting and liability. Where applicable, the ECIC shall also take into account the opinion of regions, local entities, or specialised academic institutions.

Amendment 199 #

Proposal for a regulation
Article 7 – paragraph 9

9. The ECIC shall produce an annual activity report, containing a technical description of its activities and financial statement. The annual activity report shall be transmitted to the Commission and made publicly available. The Commission may provide recommendations regarding the matters covered in the annual activity report, which shall be duly presented to the European Parliament.

Amendment 200 #

Proposal for a regulation
Article 8 – paragraph 1

Amendment 201 #

Proposal for a regulation
Article 8 – paragraph 2 – introductory part

2. With respect to the implementation of actions under the Initiative’s component referred to in Article 5, point (d), the network may perform all or some of the following activities to the benefit of the Union industry, in particular SMEs, start- ups, scale-ups, and mid-caps, as well as the public sector:

Amendment 202 #

Proposal for a regulation
Article 8 – paragraph 2 – point c

(c) raising awareness and providing or ensuring access to expertise, knowhow and services, including system design readiness, new and existing pilot lines and supporting actions necessary to build skills and competences capacities supported by this Initiative. The Commission shall provide clear guidelines about the protection of valuable intellectual property, and the prevention of unauthorised access to confidential and sensitive business, financial, economic and security information or trade secrets.;

Amendment 203 #

Proposal for a regulation
Article 8 – paragraph 2 – point c

Amendment 204 #

Proposal for a regulation
Article 8 – paragraph 2 – point d

(d) facilitating the transfer of expertise and knowhow between Member States and regions encouraging exchanges of skills, knowledge and good practices and encouraging joint programmes involving international partners and attracting international high skilled talent;

Amendment 205 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Article 8 – paragraph 2 – point d

Amendment 206 #

Proposal for a regulation
Article 8 – paragraph 2 – point d

(d) facilitating the transfer of expertise and know how between Member States ~~and region~~, regions and international partners encouraging exchanges of skills, knowledge and good practices and encouraging joint programmes;

Amendment 207 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 8 – paragraph 3

3. Member States shall designate candidate competence centres in accordance with its national procedures, administrative and institutional structures through an open and competitive process. The Commission shall, by means of ~~implementing~~delegated acts, set the procedure for establishing competence centres, including selection criteria, and further tasks and functions of the centres with respect to the implementation of the actions under the Initiative, the procedure for establishing the network as well to adopt decisions on the selection of entities forming the network. Those ~~implementing~~delegated acts shall be adopted in accordance with the examination procedure referred to in Article 33(2).

Amendment 208 #

Catharina RINZEMA, Dita CHARANZOVÁ, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

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, or capable of manufacturing materials or equipment exclusively used in semiconductor manufacturing in the Union that contribute to the security of supply for the internal market.

Amendment 209 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 10 – paragraph 1

Amendment 210 #

Proposal for a regulation
Article 10 – paragraph 1

Amendment 211 #

Proposal for a regulation
Article 10 – paragraph 2 – point d a (new)

(d a) it is able to source semiconductor materials from their original sources as wellas from other sources;

Amendment 212 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 10 – paragraph 2 – point d b (new)

(d b) it develops recycled semiconductors.

Amendment 213 #

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 priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings.deleted

Amendment 214 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 11 – paragraph 1

Amendment 215 #

Proposal for a regulation
Article 11 – paragraph 1

Amendment 216 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 11 – paragraph 2 – point d

~~(d) it commits to invest in the next generation of chips.~~deleted

Amendment 217 #

Proposal for a regulation
Article 11 – paragraph 2 – point d a (new)

(d a) it is able to source semiconductor materials from their original sources as well as from other sources;

Amendment 218 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 11 – paragraph 2 – point d b (new)

(d b) it develops recycled semiconductors.

Amendment 219 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point c

~~(c) proven experience of the applicant in installing and operating similar facilities;~~deleted

Amendment 220 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point c a (new)

(c a) willingness to seek and establish joint ventures, both between participants having the same label, and between these two labels;

Amendment 221 #

Proposal for a regulation
Article 13 – paragraph 1

1. Integrated Production Facilities and Open EU Foundries shall be considered to contribute to the security of supply of semiconductors and to maintain Intellectual Property Rights in the Union and therefore to be in the public interest.

Amendment 222 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Article 13 – paragraph 2

Amendment 223 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Article 13 – paragraph 2 a (new)

2 a. Any support must align with WTO and the ‘Regulation on foreign subsidies distorting the internal market’.

Amendment 224 #

Proposal for a regulation
Article 14 – paragraph 2

Amendment 225 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 14 – paragraph 3

Amendment 226 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Article 15 – title

Monitoring ~~and al~~, alerting and international cooperationg

Amendment 227 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

Member States ~~shall~~may only carry out ~~regular~~ monitoring of the semiconductor value chain, if it is proportionate and limit unnecessary administrative or financial burdens. In particular, they shall:

Amendment 228 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

The Commission, in cooperation with Member States, shall carry out regular monitoring of the semiconductor value chain. In particular, they shall:

Amendment 229 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

The Commission and Member States shall carry out regular monitoring of the semiconductor value chain. In particular, they shall:

Amendment 230 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a

(a) identify and monitor early warning indicators identified pursuant to Article 16;

Amendment 231 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point b a (new)

(b a) take into account the objectives of the EU Critical Raw Materials Initiative as part of its supply chain monitoring, which shall include impact assessments of anyrelocation of raw materials and component suppliers operating outside of theUnion.

Amendment 232 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2

The Commission and Member States shall provide relevant findings to the European Semiconductor Board in the form of regular updates.

Amendment 233 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2

~~Member States~~They shall provide relevant findings to the European Semiconductor Board in the form of regular updates.

Amendment 234 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 15 – paragraph 2

2. Member States shall invite the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set-up for these updates. In doing so, Member States shall consult relevant stakeholders with a view to build the necessary mechanisms on existing industry best monitoring practices.

Amendment 235 #

Proposal for a regulation
Article 15 – paragraph 2

2. The Commission, in cooperation with Member States, shall invite the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set-up for these updates.

Amendment 236 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 15 – paragraph 2

2. Member States shall ~~invite the main users of semiconductors and other~~require all relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, Member States shall provide for a user- friendly and secure mechanism and administrative set-up for these updates.

Amendment 237 #

Proposal for a regulation
Article 15 – paragraph 2 a (new)

2 a. The Commission shall provide for standardised and secure means for the information collection and processing for the purpose of paragraph 1, with due regard to minimising the administrative burden for SMEs.

Amendment 238 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 15 – paragraph 3

3. NThe Commission, in cooperation with national competent authorities designated pursuant to Article 26(1), may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. ~~National competent authoriti~~They will provide for standardised and secure means for the information collection and proces sin ~~such case~~g for the purpose of paragraph 1, and will pay particular attention to SMEs to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.

Amendment 239 #

Proposal for a regulation
Article 15 – paragraph 3

3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. National competent authorities in such case will pay particular attention to SMEs to minimise administrative burden resulting from the request and will ~~privileg~~implement user-friendly and secure digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.

Amendment 240 #

Proposal for a regulation
Article 15 – paragraph 3 a (new)

3 a. The European Commission shall enter into permanent and structured consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora, as well as the conclusion of resilient supply chain agreements.

Amendment 241 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 15 – paragraph 5 – point a – introductory part

(a) convene an urgent and extraordinary meeting of the European Semiconductor Board to coordinate the following actions:

Amendment 242 #

Proposal for a regulation
Article 15 – paragraph 5 – point a – point 1 a (new)

(1 a) coordinating with stakeholders of the semiconductor value chain with a view to of identifying, preparing and operationalising preventive measures to mitigate shortages and choke points that would prevent escalation towards a crisis stage;

Amendment 243 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 15 – paragraph 5 – point b

(b) enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora.deleted

Amendment 244 #

Proposal for a regulation
Article 15 – paragraph 5 – point b

(b) enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking ~~cooperative~~ solutions to address supply chain disruptions or third country decisions, such as those related to extraterritorial export restrictions, that could cause such disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora or other diplomatic measures while ensuring robust engagement with the stakeholder community.

Amendment 245 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Article 15 – paragraph 5 a (new)

5 a. The Commission should increase its commitment on cooperation with third countries by concluding and enforcing trade agreements. In any future investment and trade agreement of the EU with relevant third countries, collaboration in the field of semiconductors and along the entire semiconductor supply chain shall be a key priority.

Amendment 246 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Article 15 – paragraph 7

7. National competent authorities designated pursuant to Article 26(1) shall map undertakings operating along the semiconductor supply chain in their national territory, including non- confidential information on the services or goods, ~~and~~ contact information, and request information from other relevant authorities and from individual undertakings operating along the semiconductor supply chain on the actual or potential adverse human rights and environmental impacts in the semiconductor supply chain that have been or should have been identified in accordance with applicable Union legislation or Member States legislation setting out due diligence and reporting requirements on corporate sustainability. They shall notify this list and any subsequent update to the Commission. The Commission ~~may~~shall issue guidance, after consulting the European Semiconductor Board, to further specify the information to be gathered and define the technical specifications and formats.

Amendment 247 #

Proposal for a regulation
Article 15 – paragraph 7

7. National competent authorities designated pursuant to Article 26(1) shall map undertakings operating along the semiconductor supply chain in their national territory as well as located in third countries, including non- confidential information on the services or goods, and contact information. They shall notify this list and any subsequent update to the Commission. The Commission may issue guidance, after consulting the European Semiconductor Board, to further specify the information to be gathered and define the technical specifications and formats.

Amendment 248 #

Proposal for a regulation
Article 15 – paragraph 7

Amendment 249 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Article 16 – paragraph 1

1. The Commission shall, after consulting the European Semiconductor Board, ~~assess~~mapping critical factors, trends and events and assess effective and potential risks that may disrupt, compromise or negatively affect the supply and the global value chain of semiconductors (Union risk assessment). In the Union risk assessment, the Commission shall identify early warning indicators.

Amendment 250 #

Proposal for a regulation
Article 16 – paragraph 1

1. The Commission shall, after consulting the European Semiconductor Board, assess risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment), including risks resulting from adverse human rights and environmental impacts. In the Union risk assessment, the Commission shall identify early warning indicators.

Amendment 251 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 16 – paragraph 1

1. The Commission shall~~, after consulting~~ develop a list of early warning indicators in cooperation with the European Semiconductor Board~~, assess~~ with a view to identifying risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment). ~~In the Union risk assessment, the Commission shall identify early warning indicators.~~

Amendment 252 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 16 – paragraph 2

2. The Commission shall review the Union risk assessment including the early warning indicators as necessary. , including upon indication of the European Semiconductor Board..

Amendment 253 #

Proposal for a regulation
Article 16 – paragraph 2

2. The Commission shall review the ~~Union risk assessment including the~~ early warning indicators as necessary.

Amendment 254 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 16 – paragraph 3

3. When monitoring the semiconductor value chain pursuant to Article 15, Member States shall monitor the early warning indicators identified by the Commission, and the European Semiconductor Board.

Amendment 255 #

Proposal for a regulation
Article 16 – paragraph 3

3. When monitoring the semiconductor value chain pursuant to Article 15, Member States shall identify and monitor the early warning indicators identified by the Commission.

Amendment 256 #

Proposal for a regulation
Article 17 – paragraph 1 – introductory part

1. Member States, in cooperation with the Commission, shall identify key market actors along the semiconductor supply chains in their national territory, taking into account the following elements:

Amendment 257 #

Proposal for a regulation
Article 17 – paragraph 1 – introductory part

1. The Commission and Member States shall identify key market actors along the semiconductor supply chains in ~~their nat~~Unional territory, taking into account the following elements:

Amendment 258 #

(d) the impact a disruption of supply of the service or good provided by the market actor may have on the Union’s semiconductor supply chain ~~and~~, dependent markets and on the global value chain involved.

Amendment 259 #

Proposal for a regulation
Article 17 – paragraph 2

2. When monitoring the semiconductor value chain pursuant to Article 15, the Commission and the Member States shall, after consulting the European Semiconductor Board, monitor the availability and integrity of the services or goods which those key market actors provide.

Amendment 260 #

Catharina RINZEMA, Dita CHARANZOVÁ, Nicolae ŞTEFĂNUȚĂ

Proposal for a regulation
Article 17 – paragraph 2 a (new)

2 a. The European Semiconductor Board and the Commission shall establish mechanisms toprovide guidance to industry on monitoring and reporting, in particular to start-ups and SMEs, especially through the Chips Fund Portal.

Amendment 261 #

Proposal for a regulation
Article 18 – paragraph 1 – introductory part

1. A semiconductor crisis shall be considered to occur, as defined in article 2(1)(16a), when there are serious disruptions in the supply of semiconductors leading to significant shortages, which:

Amendment 262 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 18 – paragraph 1 – point a

~~(a) entail significant delays or significant negative effects on one or more important economic sectors in the Union, or~~deleted

Amendment 263 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ

Proposal for a regulation
Article 18 – paragraph 1 – point a

(a) entail significant delays or significant negative effects on ~~one or more important economic sector~~critical sectors or essential services in the Union, or

Amendment 264 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 18 – paragraph 2

2. Where an assessment of the Commission provides concrete, serious, and reliable evidence of a semiconductor crisis, the Commission may activate the crisis stage by means of ~~implementing~~delegated acts in accordance with Article 33(2). The duration of the activation shall be specified in the implementing act. Where, in view of the scope and gravity of the semiconductor crisis, duly justified imperative grounds of urgency so require, the procedure provided for in Article 33(3) shall apply to implementing acts adopted pursuant to this Articledelegated act.

Amendment 265 #

Proposal for a regulation
Article 18 – paragraph 2

2. Where an assessment of the Commission provides concrete, serious, and reliable evidence of a semiconductor crisis, the Commission may, after consulting the European Semiconductor Board, activate the crisis stage by means of implementing acts in accordance with Article 33(2). The duration of the activation shall be specified in the implementing act. WThere, in view of the scope and gravity of the semiconductor crisis, duly justified imperative grounds of urgency so require, the procedure provided for in Article 33(3) shall apply to implementing acts adopted pursuant to this Article Commission shall report on a regular basis to the European Semiconductor Board.

Amendment 266 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY

Proposal for a regulation
Article 18 – paragraph 3

Amendment 267 #

Proposal for a regulation
Article 19 – paragraph 1

1. Where the crisis stage is activated and ~~where appropriate~~if necessary 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 210 or Article 221, or both, under the conditions laid down therein.

Amendment 268 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY

Proposal for a regulation
Article 19 – paragraph 2

2. The Commission ~~may~~shall, after consulting the European Semiconductor Board, limit the measures provided for in Articles 21 and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis.

Amendment 269 #

Proposal for a regulation
Article 19 – paragraph 2

2. The Commission may, after consulting the European Semiconductor Board, limit the measures provided for in Articles 21 ~~and 22~~ to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis.

Amendment 270 #

Proposal for a regulation
Article 19 – paragraph 3 – point a

(a) assess the impact of the possible imposition of protective measures, including in particular whether the market situation corresponds to a significant shortage of an essential product pursuant to Regulation 2015/479 which provides for the possibility to introduce export authorisation requirements or quantitative restrictions on exports and provide an opinion to the Commission;

Amendment 271 #

Proposal for a regulation
Article 19 – paragraph 3 – point a a (new)

(a a) assess the impact of the possible imposition of Union-wide export control restrictions on equipment or technology to make equipment to produce advanced semiconductors pursuant to Regulation 2021/821 and provide an opinion to the Commission.

Amendment 272 #

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 strategic economic activities in the Union and must be in the best interest of the Union. The use of these measures shall avoid placing disproportionate administrative burden on SMEs.

Amendment 273 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 19 – paragraph 6

6. The Commission ~~may~~shall, after consulting the European Semiconductor Board, issue guidance on the implementation and the use of the emergency measures.

Amendment 274 #

Proposal for a regulation
Article 20 – paragraph 1

Amendment 275 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 20 – paragraph 1

1. The Commission ~~shall~~may, after consulting the European Semiconductor Board, and if all other measures has been investigated, request representative organisations of undertakings ~~or, if necessary, individual undertakings~~ operating along the semiconductor supply chain to ~~inform the Commission about their production capabilities, production capacities, current primary disruptions and provide other existing data necessary~~transmit on a voluntary basis, within a set time limit, specific information to the Commission about their production capabilities, while fully respecting trade and business secrets, to assess the nature of the semiconductor crisis or to identify and assess potential mitigation or emergency measures at national or Union level.

Amendment 276 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 20 – paragraph 2

2. The request for information shall state its legal basis, be proportionate in terms of the granularity and volume of the data and frequency of access to the data requested, have regard for the legitimate aims of the undertaking, take into account the protection of trade secrets and business sensitive information and the cost and effort required to make the data available, and set out the time limit within which the information is to be provided. It shall also indicate the penalties provided for in Article 28.

Amendment 277 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 20 – paragraph 4

4. Should an undertaking supply intentionally incorrect, incomplete or misleading information, in response to a request made pursuant to this Article, or not supply the information within the prescribed time limit, it shall be subject to fines set in accordance with Article 28.

Amendment 278 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Article 20 – paragraph 5

5. Should an undertaking established in the Union be subject to a request for information related to its semiconductor activities from a third country, it shall inform the Commission in such a manner that is least disruptive to trade and promote international cooperation, as to enable the Commission to request similar information. The Commission shall inform the European Semiconductor Board of the existence of such request from a third country.

Amendment 279 #

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 that have received public financial support to accept and prioritise an order of crisis-relevant products (‘priority rated order’). The obligation shall take precedence over any performance obligation under private or public law.

Amendment 280 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

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~~request Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of crisis-relevant products (‘priority rated order’). The obligation shall take precedence over any performance obligation under private or public law.

Amendment 281 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 21 – paragraph 2

2. The obligation under paragraph 1 can also be imposed to other semiconductor undertakings which have accepted such possibility in the context of receiving public financial support.

Amendment 282 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

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 shall inform the Commission. Should that obligation significantly impact the operation of certain critical sectors, the Commission may oblige that undertaking, where necessary, proportionate and as a last resort measure, to accept and prioritise orders of crisis relevant products in the line with paragraph 4, 5 and 6.

Amendment 283 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

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 shall inform the Commission. Should that ~~obligation~~request significantly impact the operation of certain critical sectors, the Commission may ~~oblige~~request that undertaking to accept and prioritise orders of crisis relevant products in line with paragraph 4, 5 and 6.

Amendment 284 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 21 – paragraph 4

4. The obligations under paragraph 1, 2 and 3 shall be enacted by the Commission via decision. The decision shall be ~~taken~~a last resort measure taken after consulting the European Semiconductor Board, in accordance with all applicable Union legal obligations, having regard to the circumstances of the case, including the principles of necessity and proportionality. The decision shall ~~in particular have regard for~~only be made when all other measures have been exhausted and in particular have regard for the preventive measures taken by the critical sector requesting the priority order, and the legitimate aims of the undertaking concerned and the cost and effort required for any change in production sequence. In its decision, the Commission shall state the legal basis of the priority rated order, fix the time-limit within which the order is to be performed, and, where applicable, specify the product and quantity, and state the penalties provided for in Article 28 for non- compliance with the obligation. The priority rated order shall be placed at fair and reasonable price.

Amendment 285 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 21 – paragraph 5 – introductory part

5. The undertaking concerned shall be ~~oblig~~requested to accept and prioritise a priority rated order. The undertaking 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 286 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 21 – paragraph 6

6. Where an undertaking ~~is obliged to~~ accept and prioritise a priority rated order, it shall not be liable for any breach of contractual obligations that is required to comply with the priority rated orders. The liability shall be excluded only to the extent the violation of contractual obligations was necessary for compliance with the ~~mandated~~ prioritisation. The Commission must be able to compensate the undertaking if the prioritisation lead to a negative economic impact on their business.

Amendment 287 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY

Proposal for a regulation
Article 22

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 certain critical sectors (‘common purchasing’). 2. The Commission shall, in consultation with the European Semiconductor Board, assess the utility, necessity and proportionality of the request. Where the Commission intends not to follow the request, it shall inform the Member States concerned and the European Semiconductor Board and give reasons for its refusal. 3. The Commission shall draw up a proposal for a framework agreement to be signed by the participating Member States. This framework agreement shall organise in detail the common purchasing referred to in paragraph 1. 4. Procurement under this Regulation shall be carried out by the Commission in accordance with the rules set out in the Financial Regulation for its own procurement. The Commission may have the ability and responsibility, on behalf of all participating Member States, to enter into contracts with economic operators, including individual producers of crisis- relevant products, concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result. 5. Where the procurement of crisis- relevant products includes financing from the Union budget, specific conditions may be set out in specific agreements with economic operators. 6. The Commission shall carry out the procurement procedures and conclude the contracts with economic operators on behalf of the participating Member States. The Commission shall invite the participating Member States to appoint representatives to take part in the preparation of the procurement procedures. The deployment and use of the purchased products shall remain the responsibility of the participating Member States.Article 22 deleted Common purchasing

Amendment 288 #

Proposal for a regulation
Article 22 – paragraph 1

Amendment 289 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 22 – paragraph 2

Amendment 290 #

Proposal for a regulation
Article 23 – paragraph 2 – point c

(c) discussing and preparing, with involvement of key market actors, the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products;

Amendment 291 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)

(d a) monitoring the development of a market of recycled semiconductors;

Amendment 292 #

Proposal for a regulation
Article 23 – paragraph 2 – point e a (new)

(e a) creating and regularly updating the long- term mapping of the dynamics in, as well as strengths and weaknesses of the semiconductor value chain in the Union. This mapping exercise may help the Chips Act to set targets, allowing for more focused investments in capability gaps.

Amendment 293 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 23 – paragraph 2 – point e b (new)

(e b) providing advice and assisting the Commission with regard to developing consistent guidelines on how to best protect, in the context of this Regulation, confidential information, including trade secrets or content protected by intellectual property rights, from unlawful access that risks intellectual property theft or industrial espionage;

Amendment 294 #

Proposal for a regulation
Article 23 – paragraph 3

3. The European Semiconductor Board shall support the Commission in international cooperation, including information gathering and crisis assessment, in line with international obligations, involving, where appropriate, relevant third countries and within relevant international fora.

Amendment 295 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Article 23 – paragraph 3

3. The European Semiconductor Board shall support the Commission in international cooperation, including information gathering and crisis assessment, in line with international obligations, including obligations arising from Article 15, paragraph 3a (new).

Amendment 296 #

Proposal for a regulation
Article 23 – paragraph 3

3. The European Semiconductor Board shall support the Commission in international cooperation, including information gathering ~~and~~, crisis assessment and coordination of responses to supply shortages, in line with international obligations.

Amendment 297 #

Catharina RINZEMA, Dita CHARANZOVÁ, Nicolae ŞTEFĂNUȚĂ

Proposal for a regulation
Article 24 – paragraph 1

1. The European Semiconductor Board shall be composed of representatives of the Member States, and three representatives of the Industrial Alliance on Processors and Semiconductor Technologies, and shall be chaired by a representative of the Commission.

Amendment 298 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Article 24 – paragraph 1

1. The European Semiconductor Board shall be composed of representatives of the Member States and business representatives and shall be chaired by a representative of the Commission.

Amendment 299 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

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~~shall invite organisations within the Union and from partner countries representing the interests of the semiconductor industry, including the Industrial Alliance on Processors and Semiconductor Technologies and users of semiconductors at Union level, to participate in such sub- groups ~~in the capacity of observer~~as observers that enjoy speaking rights, but no voting rights. A sub-group including Union Research and Technology Organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the European Semiconductor Board.

Amendment 300 #

Proposal for a regulation
Article 25 – paragraph 3 a (new)

3 a. The Secretariat of the European Semiconductor Board shall be part of the Commission.

Amendment 301 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 25 – paragraph 4

4. The Commission may appoint observers to take part in the meetings, as appropriate. The Commission may invite experts with specific expertise, including from relevant stakeholder organisations, with respect to a subject matter on the agenda to take part in the meetings of the European Semiconductor Board on an ad hoc basis. The Commission may facilitate exchanges between the European Semiconductor Board and other Union bodies, offices, agencies and advisory groups. The Commission shall invite a representative from the European Parliament as an observer to the European Semiconductor Board. The Commission shall ensure the participation of relevant other Union institutions and bodies as observers to the European Semiconductor Board with respect to meetings concerning Chapter IV on monitoring and crisis response. Observers and experts shall not have voting rights and shall not participate in the formulation of opinions, recommendations or advice of the European Semiconductor Board and its sub-groups. At the invitation of the European Semiconductor Board, like- minded international partners, as well as the World Trade Organisation, shall attend meetings and exchange information within the structures of the Board, which shall provide them with the necessary confidentiality criteria in order to attend to these meetings.

Amendment 302 #

Proposal for a regulation
Article 25 – paragraph 4

4. The Commission shall involve industry and civil society stakeholders in their respective role, meaning that the Commission may appoint observers to take part in the meetings, as appropriate. The Commission may invite experts with specific expertise, including from relevant stakeholder organisations, such as the Industrial Alliance for Processors and Semiconductor Technologies, with respect to a subject matter on the agenda to take part in the meetings of the European Semiconductor Board on an ad hoc basis. The Commission may facilitate exchanges between the European Semiconductor Board and other Union bodies, offices, agencies and advisory groups. The Commission shall invite a representative from the European Parliament as an observer to the European Semiconductor Board. The Commission shall ensure the participation of relevant other Union institutions and bodies as observers to the European Semiconductor Board with respect to meetings concerning Chapter IV on monitoring and crisis response. Observers and experts shall not have voting rights ~~and shall not~~but may be invited to participate in the formulation of opinions, recommendations or advice of the European Semiconductor Board and its sub-groups.

Amendment 303 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 25 – paragraph 4

4. The Commission may appoint observers to take part in the meetings, as appropriate. The Commission may invite experts with specific expertise, including from relevant stakeholder organisations, with respect to a subject matter on the agenda to take part in the meetings of the European Semiconductor Board on an ad hoc basis. The Commission may facilitate exchanges between the European Semiconductor Board and other Union bodies, offices, agencies and advisory groups. The ~~Commission shall invite a representative from the~~ European Parliament ~~as an observer~~shall have a seat to the European Semiconductor Board. The Commission shall ensure the participation of relevant other Union institutions and bodies as observers to the European Semiconductor Board with respect to meetings concerning Chapter IV on monitoring and crisis response. Observers and experts shall not have voting rights and shall not participate in the formulation of opinions, recommendations or advice of the European Semiconductor Board and its sub-groups.

Amendment 304 #

Proposal for a regulation
Article 25 – paragraph 5

5. The European Semiconductor Board shall take the necessary measures to ensure the safe handling and processing of confidential information, including trade secrets or content protected by intellectual property rights.

Amendment 305 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Article 25 – paragraph 5 a (new)

5 a. Where appropriate, regions, local entities, or coalitions or associations of the former, shall be able to demand their respective Member States to 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.

Amendment 306 #

Proposal for a regulation
Article 26 a (new)

Article 26 a International cooperation 1. The Commission, on behalf of the Union, shall 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. 2. The Commission shall enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking cooperative solutions to address future supply chain disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international for a, and should ensure robust engagement with the stakeholder community. 3. In future investment and trade agreement of the Union with relevant third countries, collaboration in the field of semiconductors and along the entire semiconductor supply chain shall be a priority. 4. For the purpose of implementing actions under the Initiative's component referred to in Article 5, point d, the Commission may set up an exchange programme for doctoral researchers in semiconductors engineering. The programme shall finance exchange periods for doctoral researchers between two or more higher education institutions in the Union and EEA members, including universities and research and technology organisations, and the relevant third countries. The cooperation agreement shall aim for the reciprocal participation of legal entities established in the Union in equivalent programmes of associated countries.

Amendment 307 #

Proposal for a regulation
Article 26 a (new)

Article 26 a International cooperation 1. The Commission, assisted by the European Semiconductor Board, shall enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to identify the availability of raw materials, intermediate products; to assess the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisation or acquisitions of key market actors. 2. The Commission, after consulting relevant third countries, should seek cooperative solutions to address future supply chain disruptions, in compliance with international obligations and within, where appropriate, relevant international fora. 3. The Commission shall include collaboration in the field of semiconductors and along the entire semiconductor supply chain, in all future investment and trade agreements of the Union with relevant third countries.

Amendment 308 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Chapter V – Section 2 a (new)

2a FOREIGN DIRECT INVESTMENT SCREENING Article 26a (new) In the framework of the first review of Regulation (EU) 2019/452 establishing a framework for the screening of foreign direct investments into the Union, the Commission shall consider the addition of the screening of outbound investments to the scope of the Regulation., on grounds of security and public order.

Amendment 309 #

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 respect the confidentiality of information and data obtained in carrying out their tasks and activities in such a manner as to protect ~~in particular~~ any intellectual property rights and sensitive business information orand trade secrets. They shall take appropriate technical and organisational measures to preserve the confidentiality of sensitive business information and trade secrets. This obligation shall apply to all representatives of Member States, key market actors observers, experts and other participants attending meetings of the European Semiconductor Board pursuant to Article 23 and the members of the Committee pursuant to Article 33(1).

Amendment 310 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Gabriel MATO

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 respect the confidentiality of information and data obtained in carrying out their tasks and activities in such a manner as to protect in particular intellectual property rights and sensitive business information or trade secrets. Any circumvention of technological protection measures and use of confidential data must be avoided. This obligation shall apply to all representatives of Member States, observers, experts and other participants attending meetings of the European Semiconductor Board pursuant to Article 23 and the members of the Committee pursuant to Article 33(1).

Amendment 311 #

Catharina RINZEMA, Dita CHARANZOVÁ, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 27 – paragraph 2

Amendment 312 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 27 – paragraph 2

2. The Commission and Member States may exchange, where necessary and in full compliance with the Union rules with regard to sensitive business, economic and security related information, confidential information with competent authorities of third countries with which they have agreed on bilateral or multilateral confidentiality arrangements to provide an adequate level of confidentiality.

Amendment 313 #

Proposal for a regulation
Article 27 – paragraph 2 a (new)

2 a. The Regulation shall in compliance with relevant legislation in the field, including Directive 2016/943 on the protection of undisclosed know-how and business information, respect the confidentiality of information obtained in carrying out their tasks and activities in such a manner as to protect, in particular confidential business information or trade secrets.

Amendment 314 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 27 – paragraph 3

3. The Commission may adopt implementing acts, as necessary following experience gained in information gathering, to specify the practical arrangements for the treatment of confidential information, including trade secrets or content protected by intellectual property rights, in the context of exchange of information pursuant to this Regulation. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 33(2).

Amendment 315 #

Catharina RINZEMA, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 27 a (new)

Article 27 a IP-Theft Guardrails 1. Each undertaking receiving Union funds under this Regulation (beneficiary) shall enter into an agreement with the Commission that, for a duration of 10 years, precludes the beneficiary from engaging in any significant transactions, as defined in that agreement, involving the material expansion of semiconductor manufacturing or R&D capacity in a third country with an intellectual property theft programme directed at the Union or a Member State. This shall not apply to significant transactions that predominantly serves the market of a third country, or to existing facilities, equipment or R&D of a beneficiary intended for manufacturing legacy semiconductors. 2. During the term of agreement, the beneficiary shall notify the Commission of any planned significant transactions. The Commission shall decide whether this constitutes a breach of the agreement, and shall notify the beneficiary. In case of a breach, the Commission will first propose and agree on conditions with the beneficiary for the mitigation of risks concerning intellectual property theft. Im lieu of an agreement, the Commissions shall request evidence that the planned significant transaction has ceased or has been abandoned. If the beneficiary fails to cease or abandon a breach, the Commission shall recover the full amount of the Union funds provided to the beneficiary and may impose fines. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.

Amendment 316 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

Proposal for a regulation
Article 28 – paragraph 1 – point b

(b) impose fines, where an undertaking, intentionally or through gross negligence, does not comply with the obligation to inform the Commission of a third country obligation pursuant to Article 15(2), Article 20(5) and Article 21(3);

Amendment 317 #

Proposal for a regulation
Article 28 – paragraph 2

2. Fines imposed in the cases referred to in paragraph 1, points (a) and (b), shall not exceed 30200 000 EUR. If the concerned undertaking is an SME, the fines imposed shall not exceed 50 000 EUR.

Amendment 318 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Gabriel MATO

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 1.5 % of the average daily turnover in the preceding business year for each working day of non-compliance with the obligation pursuant to Article 21 calculated from the date established in the decision. If the concerned undertaking is an SME, the periodic penalty payments imposed shall not exceed 0.5 % of the average daily turnover.

Amendment 319 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Article 28 – paragraph 4

4. In fixing the amount of the fine or periodic penalty payment, regard shall be had to the size, if the concerned undertaking is an SME, to the economic and administrative resources, to the nature, gravity and duration of the infringement, taking due account of the principles of proportionality and appropriateness.

Amendment 320 #

Proposal for a regulation
Article 31 – paragraph 4

4. The rights of defence of the undertaking or representative organisations of undertakings concerned shall be fully respected in any proceedings. The undertaking or representative organisations of undertakings concerned shall be entitled to have access to the Commission's file under the terms of a negotiated disclosure, subject to the legitimate interest of undertakings in the protection of their business secrets. The right of access to the file shall not extend to confidential information and internal documents of the Commission or the authorities of the Member States. In particular, the right of access shall not extend to correspondence between the Commission and the authorities of the Member States. Nothing in this paragraph shall prevent the Commission from disclosing and using information necessary to prove an infringement, respecting however undertakings trade secrets.

Amendment 321 #

Proposal for a regulation
Article 33 – paragraph 2

2. Where reference is made to this paragraph, Article ~~5 of Regulation (EU) No 182/2011~~290 TFEU shall apply.

Amendment 322 #

Proposal for a regulation
Article 33 – paragraph 3

~~3. Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 5 thereof, shall apply.~~deleted

Amendment 323 #

Catharina RINZEMA, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Article 35 – paragraph 1

1. By t~~hree~~wo years after the date of application of this Regulation and every ~~four~~three years thereafter, the Commission shall submit a report on the evaluation and review of this Regulation to the European Parliament and to the Council. The reports shall be made public.

Amendment 324 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Article 35 – paragraph 1 a (new)

1 a. The implementation of this Regulation by the Union must comply with Union law, the WTO Agreement and be consistent with commitments made under other trade and investment agreements to which the Union or the Member States are parties.

Amendment 325 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Article 35 – paragraph 1 b (new)

1 b. No later than three year after the entry into force of this regulation, the Commission shall within proposals in line with its communication on the application of the “one in, one out” principle offsetting the regulatory burden introduced by this Regulation, through the revision or abolishment of provisions in other Union legislative acts that generate compliance costs in the semiconductor sector.

Amendment 326 #

Jörgen WARBORN, Liudas MAŽYLIS, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Article 35 – paragraph 1 c (new)

1 c. No later than three years after the entry into force of this Regulation, the Commission should also consider WTO compatibility and ensure that the Regulation has been aligned with the WTO Agreement.

Amendment 61 #

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of any digital device: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage is a ~~symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain~~result of panic purchasing, coupled with last- minute order changes or cancellations, supplier shutdowns in Asia, and political instability in parts of the world. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong third-country dependency in manufacturing and design of chips.

Amendment 62 #

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of any digital device: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong dependency on five companies based in three third- countr~~y dependency~~ies in manufacturing and design of chips.

Amendment 63 #

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of any digital device: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong third-country dependency in manufacturing, packaging, testing, assembly and design of chips.

Amendment 64 #

(1 a) The global semiconductor market is projected to grow from $573.44 billion in 2022 to $ 1,380.79 billion by 2029, with the European Union representing about ten percent of the global market. The increase is driven by the essential role of semiconductors for the automotive industry and the production of electronic vehicles, but also for sectors like renewable energies, data centres, and artificial intelligence applications.

Amendment 65 #

Proposal for a regulation
Recital 1 b (new)

(1 b) A massive increase in the production of semiconductors is necessary in order to roll out the technologies and applications globally, which are necessary to defeat climate change and to achieve the United Nations' sustainable development goals by 2030.

Amendment 66 #

Proposal for a regulation
Recital 1 c (new)

(1 c) The European Union is faced with investments launched by its most important global partners and competitors. The United States decided in 2022 to provide 52 billion Dollars in manufacturing grants and research investments in semiconductors through the CHIPS Act, and a further 228 billion Dollars for research and development of other new technologies. China is also investing equally heavy in increasing its self-reliance in the semiconductor sector, and has already become a global leader in technologies such as artificial intelligence, super-conductive materials, and photonic computing.

Amendment 67 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Recital 2

(2) Therefore, legislative action is needed to address existing and potential structural deficiencies in the semiconductor industry and supply chain. 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, and increasing cooperation among the Member States ~~and~~, the Commission, like-minded international partners and, where applicable, European regions and local entities.

Amendment 68 #

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, promoting workforce skills and knowledge, including on chip design, production and research and development, strengthening the capabilities of the Union’s semiconductor supply chain, and increasing cooperation and coordination among the Member States ~~and~~, the Commission and like-minded third countries.

Amendment 69 #

Proposal for a regulation
Recital 2

(2) A framework for increasing the Union’s resilience in the field of semiconductor technologies should be established, ~~stimula~~attracting investment, enhancing production capacities, strengthening the capabilities of the Union’s semiconductor supply chain, and increasing cooperation and consultations among the Member States ~~and~~, the Commission and relevant third countries.

Amendment 70 #

Proposal for a regulation
Recital 2

Amendment 71 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies, as well as strengthening its role at the global level through international cooperation and trade.

Amendment 72 #

Proposal for a regulation
Recital 3

Amendment 73 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience, innovation capabilities and security of supply in the field of semiconductor technologies.

Amendment 74 #

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 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 and like- minded third countries, strengthening Europe's semiconductor supply and value chains, serving key industrial sectors and creating new markets. EU should promote cooperation and coordination with like- minded partners rather than racing subsidies.

Amendment 75 #

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 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 and therefore strengthen the overall strategic position of the EU in the global chips supply chain. 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, serving key industrial sectors and creating new markets.

Amendment 76 #

(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 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, while deepening coordination and cooperation in key areas among like-minded international partners, 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, serving key industrial sectors and creating new markets.

Amendment 77 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

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 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 and with its strategic partners, strengthening Europe's semiconductor supply and value chains, serving key industrial sectors and creating ~~new mark~~technological solutions for the sustainable development of our planets.

Amendment 78 #

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 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 component~~next generation semiconductor technologies. 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, packaging, testing and systems integration in next generation semiconductor technologies, enhance collaboration among key players across the Union, strengthening Europe's semiconductor supply and value chains, serving key industrial sectors and creating new markets.

Amendment 79 #

Proposal for a regulation
Recital 5

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning of the internal market. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring, export control and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain.

Amendment 80 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Recital 5

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient and secure supply is essential for the functioning of the internal market. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain.

Amendment 81 #

Proposal for a regulation
Recital 5 a (new)

(5 a) Strengthening the Union’s technological leadership requires leading- edge and custom chips, in particular for future-proof and strategic sectors such as telecommunication infrastructure. It is thus necessary to ensure that the bolstering of Europe’s semiconductor value chain prioritises reinforcing European chip design capabilities and leverages the Union’s existing leadership in strategic assets such as 5G and 6G technologies ascross-sector enablers and critical infrastructure.

Amendment 82 #

Catharina RINZEMA, Dita CHARANZOVÁ, Nicolae ŞTEFĂNUȚĂ

Proposal for a regulation
Recital 6

(6) The achievement of these objectives will be supported by a governance mechanism. At Union level, this Regulation establishes a European Semiconductor Board, composed of representatives of the Member States, regions, observers from the European Parliament, and chaired by the Commission. The European Semiconductor Board will provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and, where applicable, regions, and exchanging information on issues relating to this Regulation. The European Semiconductor Board should be included within the administration of the Commission and managed by it, and should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high-level representatives and the Commission may establish subgroups in order to monitor certain aspects of the semiconductor industry and market, such as computers with high and very high levels of performance (supercomputers).These subgroups should count on specialists of the industry, market and technology linked to the scope of the subgroup.

Amendment 83 #

Proposal for a regulation
Recital 6

Amendment 84 #

Proposal for a regulation
Recital 6

(6) The achievement of these objectives will be supported by a governance mechanism. At Union level, this Regulation establishes a European Semiconductor Board, composed of representatives of the Member States and chaired by the Commission. The European Semiconductor Board will provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and exchanging information on issues relating to this Regulation, involving and consulting, where necessary, relevant third countries. The European Semiconductor Board should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high-level representatives and the Commission may establish subgroups.

Amendment 85 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Recital 6

(6) The achievement of these objectives will be supported by a governance mechanism. At Union level, this Regulation establishes a European Semiconductor Board, composed of representatives of the Member States, business representatives and chaired by the Commission. The European Semiconductor Board will provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and exchanging information on issues relating to this Regulation. The European Semiconductor Board should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high-level representatives and ~~the Commission may establish subgroups~~business representatives affected by the Regulation.

Amendment 86 #

Jörgen WARBORN, Liudas MAŽYLIS, Danuta Maria HÜBNER, Daniel CASPARY, Seán KELLY, Gabriel MATO

Proposal for a regulation
Recital 7

(7) Given the globalised nature of the semiconductor supply chain, international cooperation with third countries is an important element to achieve a resilience of the Union’s semiconductor ecosystem. The actions taken under this Regulation should also enable the Union to play a stronger role, as a centre of excellence, in a better functioning global, interdependent semiconductors ecosystem. The Commission, assisted by the European Semiconductor Board~~, should~~ and business representatives, should work together towards both immediate and long-term supply solutions for the semiconductor market; cooperate and build partnerships with third countries with a view to seeking solutions to address, to the extent possible, disruptions of the semiconductor supply chain; and in bilateral and multilateral meetings with like-minded partners. The Commission shall maintain close cooperation with Taiwan through EU’s Indo-Pacific strategy and with a view to addressing respective vulnerabilities in a mutually beneficial manner. Taiwan is located in a strategic position in terms of trade and is a crucial partner for the global supply chain of key high-tech sectors, notably semiconductors. The Commission should urgently begin an impact assessment, public consultation and scoping exercise on a Bilateral Investment Agreement with the Taiwanese authorities in preparation for negotiations to deepen bilateral economic ties and encourage Taiwan to increase investments in the EU, including on matters relating to multilateralism and the WTO. Where necessary, representatives of third countries should be invited to address and cooperate with the European Semiconductor Board. The Trade and Technology Council should act as platform to coordinate efforts to make semiconductor supply chains more resilient.

Amendment 87 #

Proposal for a regulation
Recital 7

Amendment 88 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

Proposal for a regulation
Recital 7

Amendment 89 #

Proposal for a regulation
Recital 7

Amendment 90 #

Catharina RINZEMA, Dita CHARANZOVÁ, Svenja HAHN, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA

Proposal for a regulation
Recital 7

(7) Given the globalised nature of the semiconductor supply chain, international cooperation with th~~ird countrie~~e Union's strategic partners is an important element to achieve a resilience of the Union’s semiconductor ecosystem. The actions taken under this Regulation should also enable the Union to play a stronger role, as a centre of excellence, in a better functioning global, interdependent semiconductors ecosystem. The Commission, assisted by the European Semiconductor Board, should cooperate and build partnerships with th~~ird countrie~~e Union's strategic partners with a view to seeking solutions to address, to the extent possible, disruptions of the semiconductor supply chain.

Amendment 91 #

Proposal for a regulation
Recital 7

(7) Given the globalised nature of the semiconductor supply chain, international cooperation with third partner countries is an important element to achieve a resilience of the Union’s semiconductor ecosystem. The actions taken under this Regulation should also enable the Union to play a stronger role, as a centre of excellence, in a better functioning global, interdependent semiconductors ecosystem. The Commission, assisted by the European Semiconductor Board, should cooperate and build partnerships with third partner countries with a view to seeking solutions to address, to the extent possible, disruptions of the semiconductor supply chain.

Amendment 92 #

Catharina RINZEMA, Dita CHARANZOVÁ, Nicolae ŞTEFĂNUȚĂ, Samira RAFAELA, Svenja HAHN

Proposal for a regulation
Recital 7 a (new)

(7 a) The Commission, on behalf of the Union, shall pursue cooperation with strategic partners such as the United States, Japan, South Korea and Taiwan and other like-minded partners, with a view to strengthening the semiconductor supply chain and addressing future supply chain disruptions through a 'Chips Diplomacy Initiative'. To this end, Commission should promote international cooperation with strategic partners through future investment and trade agreements, the EU-US and EU-India Trade and Technology Councils, as well as relevant international fora, where the strengthening of the semiconductor supply chain and addressing future supply chain disruptions should be a key priority. In addition, where necessary, the Commission should enter into a dialogue, consultations or cooperation framework with relevant third countries with a view to seeking solutions to address supply chain disruptions or third country decisions that could cause such disruptions, such as those related to extraterritorial export restrictions, in line with international obligations. This may involve coordination in relevant international fora or other diplomatic measures, while ensuring robust engagement with the stakeholder community.

Amendment 93 #

Miapetra KUMPULA-NATRI, Kathleen VAN BREMPT, Paolo DE CASTRO, Inma RODRÍGUEZ-PIÑERO

(7 a) As the establishment of a fully self-sufficient domestic semiconductor supply chain is unrealistic and expensive, with estimated incremental upfront investment costs of more than $1 trillion[1], the Union must secure resilient global sources of supply through diversification and building of international partnerships with like- minded third countries. The Union’s trade policy and initiatives such as the EU-US and EU-India Trade and Technology Councils (TTC) and the EU-Taiwan Trade and Investment Dialogue are essential, as well as EU-Japan Strategic Partnership and upcoming EU-South Korea Digital Partnership, for the establishment of these relationships.

Amendment 94 #

Proposal for a regulation
Recital 8

(8) The semiconductor sector is characterised by very high development and innovation costs and very high costs for building state of the art testing and experimentation facilities to support the industrial production. This has direct impact on the competitiveness and innovation capacity of the Union industry, as well as on the security and resilience of the supply. In light of the lessons learnt from recent shortages in the Union and worldwide and the rapid evolution of technology challenges and innovation cycles affecting the semiconductor value chain, it is necessary to strengthen the Union’s competitiveness, resilience and innovation capacity by setting up the Initiative. Especially disruptive are the increasing fluctuations in order within supply chains, with several causes such as order synchronisations, shortage gaming, overreactive ordering all over the world, as ways to counter other disruptions caused by health, trading or financial reasons.

Amendment 95 #

Proposal for a regulation
Recital 8

(8) The semiconductor sector is characterised by very high development and innovation costs and very high costs for building state of the art testing and experimentation facilities to support the industrial production. This has direct impact on the competitiveness and innovation capacity of the Union industry, as well as on the security and resilience of the supply. In light of the lessons learnt from recent shortages in the Union and worldwide and being aware that no country is able to create and maintain self-sufficiency over the next decade given the rapid evolution of technology challenges and innovation cycles affecting the semiconductor value chain, it is necessary to strengthen the Union’s competitiveness, resilience and innovation capacity and ability to cooperate by setting up the Initiative.

Amendment 96 #

Proposal for a regulation
Recital 11

(11) In order to equip the Union with the semiconductor technology research and innovation capacities needed to maintain its research and industrial investments at a leading edge, and bridge the current gap between research and development and manufacturing, the Union and its Member States should better coordinate their efforts and co-invest. To achieve this, the Union and Member States, should take into consideration the twin digital and green transition goals, taking also into account those projects that are done both at regional and local levels and to duly disseminate the information on lessons learned and good practices. The Initiative throughout all components and actions, to the extent possible, should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient, effective, clean and durable use of resources, including energy and materials necessary for production and the whole lifecycle use of semiconductors.

Amendment 97 #

Proposal for a regulation
Recital 11

(11) In order to equip the Union with the semiconductor technology research and innovation capacities needed to ~~maint~~regain its research and industrial investments at a leading edge, and bridge the current gap between research and development and manufacturing, the Union and its Member States should better coordinate their efforts and co-invest. To achieve this, the Union and Member States, should take into consideration the twin digital and green transition goals. The Initiative throughout all components and actions, to the extent possible, should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient, effective, clean and durable use of resources, including energy and materials necessary for production and the whole lifecycle use of semiconductors.

Amendment 98 #

Proposal for a regulation
Recital 12

(12) (1) 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. Managed by the Commission, this virtual platform should build both a centralised version and assess whether a decentralised version on blockchain could also be necessary. 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, where applicable, region 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. Good practices from existing hub prior to the setting of the new pilot lines should be standardised and disseminated all over the Union. Third, in order to enable investments in alternative technologies, such as quantum technologies, conducive to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. The Initiative should also support other conducive and complementary technologies to the development of semiconductors, such as artificial intelligence, the Internet of Things, orWeb3.Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State, building from standardised knowledge and expertise from already existing hubs prior to the setting of the Initiative. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs and academic organisations like universities or technical schools can benefit from preferential access, or reduced prices partially or totally. Such access, including for international research and commercial partners, can lead to broader cross- fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, Tthe Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups ~~and~~, SMEs, specialised academic organisations as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30)The Chips Fund should also avoid demanding excessive administrative processes to the aforementioned possible applicants. In order to prepare and assist participants in the semiconductor industry and supply chain, the Commission should provide clear guidelines in the form of a specific Chips Fund Work Programme, including guidance on admissibility and eligibility conditions with clear deadlines, and the criteria for financial operational capacity and exclusion, information on mandatory documents, and assessment procedures. The Commission should also provide guidance on registry procedures and submit applications online via a specific and dedicated Chips Fund Portal, including guidance on preparing the applications and information on the structure, budget and political priorities of the Chips Fund. SMEs should have a dedicated space within this Chips Fund Portal.

Amendment 99 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

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 to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users provided that the IPRs stay in the European Union, and must be granted on a transparent and non- discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross- fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

source: 737.312

2022/10/19 ITRE 688 amendments...

Amendment 117 #

Draft legislative resolution
Citation 8 a (new)

— having regard to the Commission communication of 5 May 2021 entitled ‘Updating the 2020 New Industrial Strategy: Building a stronger Single Market for Europe’s recovery’ (COM(2021)0350),

Amendment 118 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

Draft legislative resolution
Citation 8 b (new)

— having regard to the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on Critical Raw Materials Resilience: Charting a Path towards greater Security and Sustainability COM(2020) 474

Amendment 119 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

Draft legislative resolution
Citation 8 c (new)

— having regard to the Decision of the European Parliament and of the Council establishing the 2030 Policy Programme “Path to the Digital Decade” 2021/0293 (COD)

Amendment 120 #

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of any digital device: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notablydisruptions have exposed a strong third- country dependency in manufacturing and design of chips.

Amendment 121 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of any digital device and the Union's digital transition: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy, security and society, the Union has witnessed unprecedented disruptions in their supply~~. The current supply shortage is a symptom of permanent and serious structural defici~~, the consequencies ~~in the Union’s semiconductor value and supply chain~~of which are significant. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong third-country dependency in manufacturing and design of chips. Therefore, action is needed to address existing and potential structural deficiencies in the semiconductor ecosystem and supply chain.

Amendment 122 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK

Proposal for a regulation
Recital 1

Amendment 123 #

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of any digital device: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage, in high range but also in mid-low range of chips, is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong third-country dependency in manufacturing and design of chips.

Amendment 124 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of any digital device: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage in high range but also in mid-low range of chips, is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong third-country dependency in manufacturing and design of chips.

Amendment 125 #

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of any digital device: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage, both in high and medium - low range, is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong third-country dependency in manufacturing and design of chips.

Amendment 126 #

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of any digital device: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong third-country dependency in manufacturing, packaging, testing, assembly and design of chips.

Amendment 127 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of any digital device: from smartphones and cars, through critical applications and infrastructures in health, energy, telecommunications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong third-country dependency in manufacturing and design of chips.

Amendment 128 #

Proposal for a regulation
Recital 1 a (new)

(1 a) Reinforcing Europe's semiconductor capacity is key to achieve strategic autonomy, by reducing dependencies, enhancing digital sovereignty and contributing to the green transition.

Amendment 129 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Recital 2

Amendment 130 #

Proposal for a regulation
Recital 2

Amendment 131 #

Proposal for a regulation
Recital 2

Amendment 132 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

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, security, adaptability and resilience of the Union’s semiconductor supply chain, and increasing cooperation among the Member States ~~and~~, the Commission, and international partners.

Amendment 133 #

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies by working towards one pan-European ecosystem for semiconductors in the internal market with pooled knowledge, expertise, resources and existing strengths in order to strengthen the Union’s position in a global interdependent semiconductors supply chain.

Amendment 134 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability as well as to ensure supply of chips to core sectors for the Union's economy. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies.

Amendment 135 #

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary ~~for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry~~to ensure the transformation of the industry according to structural changes due to increasing social needs, fast innovation cycles and the need for sustainability. The second objective, separate and complementary to the first one, is to ~~improve the functioning of the internal market by laying~~lay down a uniform Union legal framework ~~for~~ increasing the Union’s resilience and security of supply in the field of semiconductor technologies.

Amendment 136 #

Proposal for a regulation
Recital 3

Amendment 137 #

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to e~~nsure the adjustment of the industry to~~valuate the industry competitiveness and structural changes due to fast innovation cycles and the need for sustainability of supply and production. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies.

Amendment 138 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union ~~and~~ to ensure the ~~adjustment of the industry to structural changes~~semiconductor ecosystem can adapt at pace due to fast innovation cycles and the need for sustainability. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience, and ability to innovate and provide security of supply in the field of semiconductor technologies.

Amendment 139 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

Proposal for a regulation
Recital 3 a (new)

(3 a) The resilience of the internal market should be built up on Union's key strengths in the global semiconductor ecosystem and cutting red tape for businesses active in the semiconductor supply chain, rather than by selecting a Union's semiconductor winners. The regulation cannot isolate European businesses, but help them establish business relationships with other global participants in the semiconductor ecosystem.

Amendment 140 #

Proposal for a regulation
Recital 3 a (new)

(3 a) Critical raw materials are a key element of the Union's chip ecosystem, thus, a framework for increasing the Union’s resilience of critical raw materials supply should be established. Moreover, supporting research and innovation on materials and increasing cooperation between the Member States, the Commission and likeminded partners will also be necessary.

Amendment 141 #

Proposal for a regulation
Recital 3 b (new)

Amendment 142 #

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 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, while promoting sustainable manufacturing processes, mainly those that reduce the amount of water and energy used. 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, serving key industrial sectors and creating new markets.

Amendment 143 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Sara SKYTTEDAL, Tomas TOBÉ, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS, Pernille WEISS

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 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, while deepening coordination and cooperation in key areas among international partners, 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, serving key industrial sectors and creating new markets.

Amendment 144 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Nicola DANTI

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 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 component~~next generation semiconductor technologies. 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, equipment, packaging, testing and systems integration in next generation semiconductor technologies, enhance collaboration among key players across the Union, strengthening Europe's semiconductor supply and value chains, serving key industrial sectors and creating new markets.

Amendment 145 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

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 the competitiveness and resilience of the semiconductor technological and industrial base, whilst strengthening the innovation and manufacturing capacityies 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 in terms of manufacturing. 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, serving key industrial sectors and creating new markets.

Amendment 146 #

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 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 produc~~, produce, package, reuse and recycle 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, serving key industrial sectors and creating new markets.

Amendment 147 #

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 the competitiveness and resilience of the semiconductor technological and industrial base, whilst strengthening the innovation capacity of its semiconductor sector across the Union, 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, serving key industrial sectors and creating new markets.

Amendment 148 #

Proposal for a regulation
Recital 5

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning of the internal market. Given the wide circulation of semiconductor products across borders, the resilience ~~and security~~ of supply of semiconductors can be ~~best~~ addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain. Given the lack of the impact assessment accompanying the Commission proposal and proposed untested method of subsidizing production, the Commission should regularly and carefully publish and deliver relevant information and assessments about the impact of this regulation on internal market, competitiveness and the Union budget and national budgets.

Amendment 149 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Recital 5

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning of the internal market. The only way to strengthen the European semiconductor market in a global interdependent semiconductor supply chain is to work towards a pan-European ecosystem within the internal market where knowledge, expertise, resources and existing strengths are pooled. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain.

Amendment 150 #

Proposal for a regulation
Recital 5

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning of the internal market. Given the wide circulation of semiconductor products across borders world wide, the resilience and security of supply of semiconductors can be best addressed through international cooperation, trade, support to innovation and creating attractive environment for European companies and industry. Union harmonising legislation based on Article 114 of the Treaty is an additional possibility. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain.

Amendment 151 #

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning of the internal market. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. ~~The proposed monitoring and crisis response mechanism should be uniform to enable a co~~Based on an approved methodology, a subsequent mapping of the semiconductor value chains should form the basis ford in~~ated approach to crisis preparedness for the cross-border semiconductor value chain~~ depth impact assessment for the measures proposed within the crisis response mechanism.

Amendment 152 #

Proposal for a regulation
Recital 5 a (new)

(5 a) Strengthening the Union’s critical infrastructure and security as well as technological leadership requires leading- edge and custom chips, in particular for future-proof and strategic sectors such as telecommunication infrastructure as well as 5G and 6G technologies.

Amendment 153 #

Proposal for a regulation
Recital 6

(6) The achievement of these objectives will be supported by a governance mechanism. At Union level, this Regulation establishes a European Semiconductor Board, composed of representatives of the Member States, the European Parliament and chaired by the Commission. The European Semiconductor Board ~~will~~, granting stakeholders the possibility to become official observers and to provide expert input, will approve the methodology for the mapping of the semiconductor value and supply chain, provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and exchanging information on issues relating to this Regulation. The European Semiconductor Board should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high-level representatives and the Commission may establish subgroups ensuring access to members and observers of the European Semiconductor Board.

Amendment 154 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Recital 6

(6) The achievement of these objectives will be supported by a governance mechanism. At Union level, this Regulation establishes a European Semiconductor Board, composed of representatives of the Member States, industry and research organisations representing the semiconductor value chain, and chaired by the Commission. The European Semiconductor Board will provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and exchanging information on issues relating to this Regulation. The European Semiconductor Board should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high- level representatives and the Commission may establish subgroups.

Amendment 155 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 6

(6) The achievement of these objectives will be supported by a governance mechanism. At Union level, this Regulation establishes a European Semiconductor Board, composed of representatives of the Member States and chaired by the Commission. The European Semiconductor Board will provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and exchanging information on issues relating to this Regulation, involving and consulting, where necessary, relevant third countries.. The European Semiconductor Board should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high-level representatives and the Commission may establish subgroups.

Amendment 156 #

Proposal for a regulation
Recital 6

Amendment 157 #

Andrius KUBILIUS

Proposal for a regulation
Recital 7

(7) Given the globalised nature of the semiconductor supply chain, international cooperation with third countries is an important element to achieve a resilience of the Union’s semiconductor ecosystem. Trade and partnership agreements with third countries must remain a priority element of the Union’s strategy to address chip shortages. Such agreements are instrumental to bolstering the resilience of global supply chains and must be reached preferentially with like-minded third countries that have advantages in the semiconductor industry, to meet the growing demand for semiconductors. The actions taken under this Regulation should also enable the Union to play a stronger role, as a centre of excellence, in a better functioning global, interdependent semiconductors ecosystem. The Commission, assisted by the European Semiconductor Board, should cooperate and build partnerships with third countries with a view to seeking solutions to address, to the extent possible, disruptions of the semiconductor supply chain.

Amendment 158 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Sara SKYTTEDAL, Tomas TOBÉ, Angelika NIEBLER, Othmar KARAS, Pernille WEISS

Proposal for a regulation
Recital 7

(7) Given the globalised nature of the semiconductor supply chain, international cooperation with third countries is an important element toin achiev~~e a~~ing resilience of the Union’s semiconductor ecosystem. The actions taken under this Regulation should also enable the Union to play a stronger role, as a centre of excellence, in a better functioning global, interdependent semiconductors ecosystem. The Commission, assisted by the European Semiconductor Board, should cooperate and build partnerships with third countries with a view to seeking solutions to address, to the extent possible, disruptions of the semiconductor supply chain. Therefore, at the invitation of the European Semiconductor Board, international partners and third parties should be able to attend meetings, provide consultation, and exchange information within the structures of the European Semiconductor Board.

Amendment 159 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Recital 7

Amendment 160 #

Proposal for a regulation
Recital 7

Amendment 161 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Recital 7 a (new)

(7 a) The Commission, on behalf of the Union, should pursue cooperation with strategic partners such as the United States, Japan, South Korea and Taiwan and other like-minded partners, with a view to strengthening the semiconductor supply chain and addressing future supply chain disruptions through a 'Chips Diplomacy Initiative'. To this end, Commission should promote international cooperation with strategic partners through future investment and trade agreements, the EU-US and EU-India Trade and Technology Councils, as well as relevant international fora, where the strengthening of the semiconductor supply chain and addressing future supply chain disruptions should be a key priority. In addition, where necessary, the Commission should enter into a dialogue, consultations or cooperation framework with relevant third countries with a view to seeking solutions to address supply chain disruptions or third country decisions that could cause such disruptions, such as those related to extraterritorial export restrictions, in line with international obligations. This could involve coordination in relevant international fora or other diplomatic measures, while ensuring robust engagement with the stakeholder community.

Amendment 162 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

Proposal for a regulation
Recital 8

(8) The semiconductor sector is characterised by very high development and innovation costs and very high costs for building state of the art testing and experimentation facilities to support the industrial production. This has direct impact on the competitiveness and innovation capacity of the Union industry, as well as on the security and resilience of the supply. In light of the lessons learnt from recent shortages in the Union and worldwide and the rapid evolution of technology challenges and innovation cycles affecting the semiconductor value chain, it is necessary to strengthen the Union’s existing strengths, thus increasing its relative competitiveness, resilience and innovation capacity by setting up the Initiative.

Amendment 163 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Recital 8

(8) The semiconductor sector is characterised by very high development and innovation costs and very high costs for building state of the art testing and experimentation facilities to support the industrial production. This has direct impact on the competitiveness and innovation capacity of the Union industry, as well as on the security and resilience of the supply. In light of the lessons learnt from recent shortages in the Union and worldwide and the rapid evolution of technology challenges and innovation cycles affecting the semiconductor value chain, it is necessary to strengthen the Union’s competitiveness, resilience ~~and~~, innovation capacity and manufacturing by setting up the Initiative.

Amendment 164 #

Proposal for a regulation
Recital 8

(8) The semiconductor sector is characterised by very high development and innovation costs and very high costs for building state of the art testing and experimentation facilities to support the industrial production. This has direct impact on the competitiveness and innovation capacity of the Union industry, as well as on the security and resilience of the supply. In light of the lessons learnt from recent shortages in the Union and worldwide and the rapid evolution of technology challenges and innovation cycles affecting the semiconductor value chain, it is necessary to strengthen the Union’s competitiveness, resilience and research and innovation capacity by setting up the Initiative.

Amendment 165 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

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 goals of this Regulation should be supported with specific and significant new financial provisions. Such funds should be used also for the research, design and testing of advanced and evolving existing and complementary technologies and products within the Union's semiconductor industry.

Amendment 166 #

Proposal for a regulation
Recital 9

Amendment 167 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

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 and research innovation challenge in the semiconductor sector requires action to be taken collaboratively at Union level.

Amendment 168 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

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~~importance, scale, complexity, and cross-border nature of the semiconductor sector requires action to be taken collaboratively at Union level.

Amendment 169 #

Proposal for a regulation
Recital 9 a (new)

(9 a) In order to counter the emerging territorial distortion triggered by imbalances in economic means for investments in the semiconductor ecosystem between Member States and to enable the further development and regional diffusion of the semiconductor ecosystem also in smaller Member States, an instrument shall be established to create a financial balancing mechanism.

Amendment 170 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

Proposal for a regulation
Recital 10

(10) The Horizon Europe Framework programme established by Regulation (EU) 2021/695 of the European Parliament and of the Council51 (Horizon Europe) – the Framework Programme for Research and Innovation, has the objective to strengthen the European research area (ERA), encouraging it to become more competitive, including in its industry, while promoting all research and innovation (R&I) activities to deliver on the Union's strategic priorities and commitments, which ultimately aim to promote peace, the Union's values and the well-being of its peoples. ~~As a major priority of~~Since the UIni~~on, the total financial resources allocated to the programme should not be reduced and the reduction of the financial resources of the prog~~tiative was not envisaged when the multiannual financial framme, aimed to reinforce the financial envelope of the Digital Europe programme with the aim of contributing to the Chips initiative, should be compensated by another source. Consequently, without prejudice to the institutional prerogatives of the European Parliament and of the Council, an amount of commitment appropriations equivwork (MFF) for 2021-2027 was established, and to avoid any cuts to other Union initiatives and programmes, the amount of the financial ent to the reduction should be made available to Horizon Europe over the period 2023-2027, resulting from total or partial non-implementation of projects belonging to that programme or its predecessor, as provided for in Article 15(3) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council52 (the Financial Regulation). This amount will be in addition to the EUR 0.5 velope should be drawn from the unallocated margins under the MFF ceilings or mobilli~~on (in 2018 prices) already mentioned in the Joint Declaration by the European Parliament, the Coun~~sed through the non-thematic MFF special ~~and the Commission on the re-use of decommitted funds in relation to the research programme~~instruments. _________________ 51 Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013. (OJ L 170, 12.5.2021, p. 1). 52 Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

Amendment 171 #

Proposal for a regulation
Recital 10

(10) The Horizon Europe Framework programme established by Regulation (EU) 2021/695 of the European Parliament and of the Council51 (Horizon Europe) – the Framework Programme for Research and Innovation, has the objective to strengthen the European research area (ERA), encouraging it to become more competitive, including in its industry, while promoting all research and innovation (R&I) activities to deliver on the Union's strategic priorities and commitments, which ultimately aim to promote peace, the Union's values and the well-being of its peoples. As a major priority of the Union, the total financial resources allocated to the programme should not be reduced or repurposed to fund activities outside of research and innovation and the reduction of the financial resources of the programme, aimed to reinforce the financial envelope of the Digital Europe programme with the aim of contributing to the Chips initiative, should be compensated by another source. Consequently, without prejudice to the institutional prerogatives of the European Parliament and of the Council, an amount of commitment appropriations equivalent to the reduction should be made available to Horizon Europe over the period 2023-2027, resulting from total or partial non- implementation of projects belonging to that programme or its predecessor, as provided for in Article 15(3) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council52 (the Financial Regulation). This amount will be in addition to the EUR 0.5 billion (in 2018 prices) already mentioned in the Joint Declaration by the European Parliament, the Council and the Commission on the re- use of decommitted funds in relation to the research programme. _________________ 51 Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013. (OJ L 170, 12.5.2021, p. 1). 52 Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

Amendment 172 #

Proposal for a regulation
Recital 11

(11) In order to equip the Union with the semiconductor technology research and innovation capacities needed to maintain its research and industrial investments at a leading edge, and bridge the current gap between research and development and manufacturing, the Union and its Member States should better coordinate their efforts and co-invest. In those cases where an undertaking proposes a groundbreaking project that would foster the entire Union’s resilience, total investment from the Union should be considered in order to avoid excluding such crucial projects due to the lack of investment from Member States. To achieve this, the Union and Member States, should take into consideration the twin digital and green transition goals. The Initiative throughout all components and actions, to the extent possible, should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient, effective, clean and durable use of resources, including energy and materials necessary for production and the whole lifecycle use of semiconductors.

Amendment 173 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Othmar KARAS

Proposal for a regulation
Recital 11

(11) In order to equip the Union with the semiconductor technology research and innovation capacities needed to maintain its research and industrial investments at a leading edge, and bridge the current gap between research and development and manufacturing, the Union and its Member States should better coordinate their efforts and co-invest~~. To achieve this, the Union and Member States, should take into consideration the twin digital and green~~ and shall align all investments with the goals of the twin green and digital transition ~~goals~~. The Initiative throughout all components and actions, to the extent possible, should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient, effective, clean and durable use of resources, including energy and materials necessary for production and the whole lifecycle use of semiconductors.

Amendment 174 #

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 to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components, and other future orientated technologies in the area of semiconductors. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross- fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, Tthe Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

Amendment 175 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

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 to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Overlapping and duplication of efforts with the Quantum Technologies Flagship should be avoided. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross- fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

Amendment 176 #

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 ~~alternati~~novel technologies, such as integrated photonics and quantum technologies, conducive to the development of the semiconductors sector, the Initiative should support actions including on design libraries for photonic and quantum chips, pilot lines for building, and scaling the production of photonic and quantum chips and testing and experimentation facilities for photonic and quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross- fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

Amendment 177 #

Mauri PEKKARINEN, Bart GROOTHUIS

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 to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State, by enhancing existing centres or creating new facilities. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross- fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

Amendment 178 #

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 have a broad geographic coverage and 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 to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross-fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

Amendment 179 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

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 to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs and academic research centers can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross-fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

Amendment 180 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

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 pre~~ducing~~venting negative environmental impacts ~~as much as possible~~, especially reducing to a minimum the use of water, energy, toxic chemicals and heavy metals. 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 to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis ~~and on market terms (or cost plus reasonable margin basis)~~ for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross- fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

Amendment 181 #

Proposal for a regulation
Recital 12 a (new)

(12 a) The Commission should provide clear guidelines in the form of a specific Chips Fund Work Programme. It should include guidance on admissibility and eligibility, clear deadlines, the criteria for financial operational capacity and exclusion, information on mandatory documents to be provided, the evaluation procedures, and guidance on preparing the applications. Information on the structure, budget and political priorities of the Chips Fund should also be included. The Commission should also provide guidance on procedures to register and submit applications online via a specific and dedicated EU Chips Fund Portal.

Amendment 182 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 12 b (new)

(12 b) The Chips Fund activities should support the development of a dynamic and resilient semiconductor ecosystem. It should provide opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investment across the entire value chain. The European Innovation Council should provide further dedicated support through grants and equity investments to high- risk, market-creating innovators. Support and guidance should be provided, in particular, to SMEs on how to access public and private investment, including venture capital, with an aim of speeding up not only access, but also the application and approval process.

Amendment 183 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 12 c (new)

(12 c) The Commission should provide clear and readily available guidelines on the terms and conditions for the development of, and third party access to pilot lines, as well as the compatibility and accessibility of the Union virtual design platforms.

Amendment 184 #

Proposal for a regulation
Recital 12 d (new)

(12 d) Given the importance of collaboration with third parties in the area of R&D&I, the European Semiconductor Board and the Commission should establish clear and readily available guidelines on access modes, software and hardware for their participation in projects within the scope of this Regulation. Within the structures of the European Semiconductor Board, the EU-US Trade and Technology Council and other Union agreements and strategies with third countries, guidance should be provided to overcome existing obstacles to international cooperation in the field of R&D&I.

Amendment 185 #

Proposal for a regulation
Recital 13

(13) The Chips sector as a strategic sector is too important to be left in the hands of the private for-profit sector. In order to overcome the limitations of the current fragmented public and private investments efforts, facilitate integration, cross-fertilisation, and return on investment on the ongoing programmes and to pursue a common strategic Union vision on semiconductors as a means to realising the ambition of the Union and of its Member States to ensure a leading role in the digital economy, the Chips for Europe Initiative should facilitate better coordination and closer synergies between the existing funding programmes at Union and national levels, ~~better coordination and collaboration with industry~~public control and coordination of the sector and key private sector stakeholders and additional joint public investments with Member States. The implementation set up of the Initiative is built to pool resources from the Union, Member States and third countries associated with the existing Union Programmes, as well as the private sector. The success of the Initiative can therefore only be built on a collective effort by Member States, with the Union, to support both the significant capital costs and the wide availability of virtual design, testing and piloting resources and diffusion of knowledge, skills and competences. The central role public initiative and funding, including to industrial de- risking, should come with commensurate public ownership of process and/or end- products. Where appropriate, in view of the specificities of the actions concerned, the objectives of the Initiative, specifically the ‘Chips Fund’ activities, should also be supported through a blending facility under the InvestEU Fund.

Amendment 186 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 13

(13) In order to overcome the limitations of the current fragmented public and private investments efforts, facilitate integration, cross-fertilisation, and return on investment on the ongoing programmes and to pursue a common strategic Union vision on semiconductors as a means to realising the ambition of the Union and of its Member States to ensure a leading role in the digital economy, the Chips for Europe Initiative should facilitate better coordination and closer synergies between the existing funding programmes at Union and national levels, better coordination and collaboration with industry and key private sector stakeholders and additional joint investments with Member States. The implementation set up of the Initiative is built to pool resources from the Union, Member States and third countries associated with the existing Union Programmes, as well as the private sector. The success of the Initiative can therefore only be built on a collective effort by Member States, with the Union, to support both the significant capital costs and the wide availability of virtual design, testing and piloting resources and diffusion of knowledge, skills and competences. Where appropriate, in view of the specificities of the actions concerned, the objectives of the Initiative, specifically the ‘Chips Fund’ activities, should also be supported through a blending facility under the InvestEU Fund. The new concepts and ambitions of this Regulation should be supported with significant new financial provisions for the design, experimentation, manufacturing, packaging, and testing of advanced and evolving existing technologies and products within the Union's semiconductor ecosystem.

Amendment 187 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 14

(14) Support from the Initiative should be used to address market failures or sub- optimal investment situations as a consequence of the high capital intensity, high risk, and complex landscape of the semiconductor ecosystem in a proportionate manner, and actions should not duplicate or crowd out private financing or distort competition in the internal market. Actions should have a clear added value for the Union.

Amendment 188 #

Proposal for a regulation
Recital 14

(14) Support from the Initiative should be used to address market failures or sub- optimal investment situations in a proportionate cost-effective manner, and actions should not duplicate or crowd out private financing or distort competition in the internal market. Actions should have a clear added value for the Union.

Amendment 189 #

Proposal for a regulation
Recital 14

Amendment 190 #

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 tool box 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. With a view to ensure better involvement of all industrial players in these private-public partnerships, ECICs should seek to have a diverse composition, including the participation of SMEs.

Amendment 191 #

Proposal for a regulation
Recital 16

Amendment 192 #

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. The ECIC should also be able to assist in obtaining semiconductor materials from primary and secondary sources, and to assist in the development of recycled semiconductors. 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 193 #

Proposal for a regulation
Recital 16

(16) 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). 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 194 #

Proposal for a regulation
Recital 16 a (new)

(16 a) With a view to facilitating the SMEs efforts to innovate and grow and to support the Union’s strategic autonomy, the Commission should continue to reinforce the Enterprise Europe Network.

Amendment 195 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

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, public support may be appropriate. In that respect, it is necessary to set out the criteria for facilitating the implementation of specific projects that contribute to achieving the objectives of this Regulation and distinguish between two types of facilities, namely: Integrated Production Facilities and Open EU Foundries. Public support should be in line with the Commission Communication on a competition policy fit for new challenges, taking note of the exceptional situation as regard semiconductors. Public support should be subject to strong competition safeguards, and ensure the benefits are shared widely across the Union economy.

Amendment 196 #

Mauri PEKKARINEN

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, public support may be appropriate. That public support should be proportionate and limited in time. In that respect, it is necessary to set out the criteria for facilitating the implementation of specific projects that contribute to achieving the objectives of this Regulation and distinguish between two types of facilities, namely: Integrated Production Facilities and Open EU Foundries.

Amendment 197 #

Proposal for a regulation
Recital 18

(18) In order to encourage the establishment of the necessary manufacturing and related design capabilities, including manufacturing equipment, and thereby ensure the security of supply in the Union, public support may be appropriate. In that respect, it is necessary to set out the criteria for facilitating the implementation of specific projects that contribute to achieving the objectives of this Regulation and distinguish between two types of facilities, namely: Integrated Production Facilities and Open EU Foundries.

Amendment 198 #

Proposal for a regulation
Recital 19

(19) Integrated Production Facilities and Open EU Foundries should provide semiconductor manufacturing capabilities that are “first-of-a-kind” in the Union and contribute to the security of supply and to athe resilientce of the semiconductor ecosystem in the internal market. ~~The qualifying factor for the production of a first-of-a-kind facility could be with regard to the~~An important factor for “first-of-a-kind” is to bring an innovative element to the internal market regarding the manufacturing processes or the final product. Relevant innovation elements could be the use of a new technology node, or a new substrate material, (such as sGallium Nitride or Silicon cCarbide and gallium nitride, and other product innovation that can offer better performance, process technology or energy and environmental performance. A facility of a comparable capability on an industrial scale), or approaches that lead to performance improvements in computing power, energy efficiency, level of security, safety or reliability, as well as integration of new functionalities, such as AI, memory capacity or other. Integration of different processes and devices leading to efficiency gains or packaging and assembly automation are also examples of innovation. With regard to environmental gains, innovation elements include the reduction in a quantifiable way of the amount of energy, water or chemicals used, or increasing recyclability of materials. Such innovation should not yet substantively be present or committed to be built within the Union, ~~excluding~~so that similar innovation provided by facilities for research and development or small- scale production sites would not prevent industrial semiconductor manufacturing sites from qualifying as “first-of-a-kind”. Qualification as “first-of-a-kind” holds both for new facilities, as for industrialization and volume scale-up, and modernization of existing facilities. “First-of-a-Kind” within an integrated production facility should not prevent an Open Foundry available to multiple customers from also qualifying as “first- of-a-kind” and vice versa.

Amendment 199 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Christophe GRUDLER

Proposal for a regulation
Recital 19

(19) Integrated Production Facilities and Open EU Foundries should provide semiconductor manufacturing capabilities, or manufacturing capabilities in material and/or equipment exclusively used in semiconductor manufacturing that are “first-of-a-kind” in the Union and contribute to the security of supply and to a resilientce of the semiconductor ecosystem in the internal market. The qualifying factor for the production of a first-of-a- kind facility ~~could be with regard to the~~is to bring an innovative element to the internal market regarding the manufacturing processes or the final product. Relevant innovation elements could be the use of a new technology node, or substrate material, such as silicon carbide, indium, phosphide and gallium nitride, ~~and other product innovation that can offer better performance, process technology or energy and environmental performance. A facility of a comparable capability on an industrial scale~~or approaches that lead to performance improvements in computing power, energy efficiency, level of security, safety or reliability, as well as integration of new functionalities, such as AI, memory capacity or other.Integration of different processes leading to efficiency gains or packaging and assembly automation are also examples of innovation. With regard to environmental gains, innovation elements include the reduction in a quantifiable way of the amount of energy, water, chemicals or gasses used, or increasing recyclability of materials. Such innovation should not yet substantively be present or committed to be built within the Union, so that similar innovation provided by excluding facilities for research and development or small- scale production sites. would not crowd outqualifying as “first-of-a-kind”.

Amendment 200 #

Proposal for a regulation
Recital 19

Amendment 201 #

Proposal for a regulation
Recital 19

(19) Integrated Production Facilities and Open EU Foundries should provide semiconductor manufacturing capabilities that are “first-of-a-kind” in the Union and contribute to the security of supply and to athe resilientce of the semiconductor ecosystem in the internal market. The qualifying factor ~~for the production of a first-of-a-kind facility~~“first-of-a-kind” is to bring an innovative element to the internal market regarding the manufacturing processes or the final product. Relevant innovation elements could be with regard to the technology node, or substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process technology or energy and environmental performance. A facility of a comparable capability on an industrial scaleor approaches that can lead to performance, improvements in computing power, energy efficiency, level of security, safety or reliability, as well as integration of new functionalities, such as AI, memory capacity or other. Integration of different processes leading to efficiency gains or packaging and assembly automation are also examples of innovation. With regard to environmental gains, innovation elements include the reduction in a quantifiable way of the amount of energy, water or chemicals used, or increasing recyclability of materials. Such innovation should not yet substantively be present or committed to be built within the Union, ~~excluding~~so that similar innovation provided by facilities for research and development or small- scale production sites. would not crowd out qualifying as “first-of-a-kind”.

Amendment 202 #

Proposal for a regulation
Recital 19

Amendment 203 #

Proposal for a regulation
Recital 19

(19) Integrated Production Facilities and Open EU Foundries should provide semiconductor manufacturing capabilities that are “first-of-a-kind” in the Union and contribute to the security of supply ~~and to a resilient ecosystem in the internal market. The qualifying factor for the production of a first-of-a-kind facility could b~~. ‘first- of-a-kind facility’ means a new or retrofitted industrial facility capable of semiconductor manufacturing or design, including front-end or back-end, or both, or capable of manufacturing materials or equipment specifically used in semiconductor manufacturing, that is not substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, or and other product or production innovation that can offer state-of-the-art better performance, ~~process technology or energy and environmental performance. A facility of a comparable capability on an industrial scale should not yet substantively be present or committed to be built with~~increases the recyclability of semiconductors, reduces significantly and demonstrably the required production inputs, such as energy, water, toxic chemicals and heavy metals, demonstrably enables energy savings in othe ~~Union, excluding facilities for research and deve~~r industries and sectors and enables the deplopyment o~~r small-scale production s~~f renewable energy, storage and transmission capacities.

Amendment 204 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 19

(19) Integrated Production Facilities and Open EU Foundries should provide semiconductor and photonics manufacturing capabilities that are “first- of-a-kind” in the Union and contribute to the security of supply and to a resilient ecosystem in the internal market. The qualifying factor for the production of a first-of-a-kind facility could be with regard to the technology node, substrate material, such as indium phosphide, silicon carbide and gallium nitride, and other product innovation that can offer better performance, process technology or energy and environmental performance. A facility of a comparable capability on an industrial scale should not yet substantively be present or committed to be built within the Union, excluding facilities for research and development or small-scale production sites.

Amendment 205 #

Proposal for a regulation
Recital 19

Amendment 206 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Recital 20

Amendment 207 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Christophe GRUDLER

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. 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 EU Foundry on the semiconductor value chain in the Union. The operator of the Open EU Foundry should retain the right to decide at its own discretion the specific share of capacity dedicated to serve unrelated undertakings. Such business decisions should remain open to changes by the operator, subject to evolving market dynamics.

Amendment 208 #

(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 Union's economy, as well as 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~~. The operation of the facility should increase the security of and the resilience of the semiconductor ecosystem and should contribute significantly to the creation of decent and sustainable quality jobs, increased qualified workforce and the objectives of the Union’s green and digital transition. 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 EU Foundry on the semiconductor value chain in the Union.

Amendment 209 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

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. TAny European or other public funds used should result in proportionate public ownership. Member States should establish non-for-profit entities. Equally, the impact on several Member States, including cohesion and employment objectives, should be considered as one of the indicators of a clear positive impact of an Integrated Production Facility and Open EU Foundry on the semiconductor value chain in the Union.

Amendment 210 #

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. 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 EU Foundry on the semiconductor value chain in the Union and, where relevant, the ability to contribute to the stability of global supply.

Amendment 211 #

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 current and next generation semiconductors to users on the internal market. 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 EU Foundry on the semiconductor value chain in the Union.

Amendment 212 #

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. The impact on several Member States, including cohesion objectives, should be considered a~~s one of the~~ particularly important indicators of a clear positive impact of an Integrated Production Facility and Open EU Foundry on the semiconductor value chain in the Union.

Amendment 213 #

Proposal for a regulation
Recital 22

Amendment 214 #

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 Foundries should commit to continued and efficient investment into the next generations of semiconductors, including by testing and experimenting new developments through priority access to the pilot lines set up by the Chips for Europe Initiative, without prejudice to effective access by others. Additionally, the Commission should concretely assist private investors in performing the funding gap analysis and aid in deciding the level of evidence undertakings need to produce to satisfy the counterfactual scenario, following consultations with the private investors.

Amendment 215 #

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 Foundries should commit to continued and efficient investment into the existing and next generations of semiconductors, including by testing and experimenting new developments through priority access to the pilot lines set up by the Chips for Europe Initiative, without prejudice to effective access by others. The Union's semiconductor ecosystem should be fairly developed across every Member State, including islands and peripheral regions, which have more difficulties in attracting funds as well investments.

Amendment 216 #

Proposal for a regulation
Recital 23

Amendment 217 #

Proposal for a regulation
Recital 23

Amendment 218 #

Proposal for a regulation
Recital 23

Amendment 219 #

Proposal for a regulation
Recital 24

(24) To allow for a uniform and transparent procedure to attain recognition as an Integrated Production Facility and Open EU Foundry, the recognition decision should be adopted by the Commission following the application by an individual undertaking or a consortium of several undertakings. To account for the importance of a coordinated and cooperated implementation of the planned facility, the Commission should take into account in its assessment the readiness of the Member State or Member States where the applicant intends to establish its facilities to support the set-up. Furthermore, when assessing the viability of the business plan, the Commission could take into account the overall record of the applicant, the clear and demonstrable contribution of the eligible action proposed to be implemented to the long term competitiveness of the Union's semiconductor industry and the objectives described in Article 4, the cost- effectiveness of the eligible action proposed to be implemented, the contribution to achieving the twin transition of the eligible action proposed to be implemented, the environmental impact of the eligible action proposed to be implemented and the commitment to prevent any damages to the environment and biodiversity as well as the participation of SMEs and start-ups. In light of the privileges attached to recognition as an Integrated Production Facility or Open EU Foundry, the Commission should monitor whether facilities that have been granted this status continue to comply with the criteria set out in this Regulation.

Amendment 220 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Recital 24

(24) To allow for a uniform and transparent procedure to attain recognition as an Integrated Production Facility and Open EU Foundry, the recognition decision should be adopted by the Commission following the application by an individual undertaking or a consortium of several undertakings. The recognition is open for both the installation of a new semiconductor manufacturing facility and the significant scale up of an existing semiconductor manufacturing facility. To account for the importance of a coordinated and cooperated implementation of the planned facility, the Commission should take into account in its assessment the readiness of the Member State or Member States where the applicant intends to establish its facilities to support the set-up. Furthermore, when assessing the viability of the business plan, the Commission cshould take into account the overall record of the applicant. In light of the privileges attached to recognition as an Integrated Production Facility or Open EU Foundry, the Commission should monitor whether facilities that have been granted this status continue to comply with the criteria set out in this Regulation.

Amendment 221 #

Jens GEIER

Proposal for a regulation
Recital 24

(24) To allow for a uniform and transparent procedure to attain recognition as an Integrated Production Facility and Open EU Foundry, the recognition decision should be adopted by the Commission following the application by an individual undertaking or a consortium of several undertakings. To account for the importance of a coordinated and cooperated implementation of the planned facility, the Commission should take into account in its assessment the readiness of the Member State or Member States where the applicant intends to establish its facilities to support the set-up. Furthermore, when assessing the viability of the business plan, the Commission could take into account the overall record of the applicant. The Commission should consider the particular needs and possibilities of start-ups, scale-ups and SMEs when becoming an Integrated Production Facility or an Open EU Foundry. In light of the privileges attached to recognition as an Integrated Production Facility or Open EU Foundry, the Commission should monitor whether facilities that have been granted this status continue to comply with the criteria set out in this Regulation.

Amendment 222 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 25

(25) In light of their importance for ensuring the security of supply and enabling a resilient semiconductor ecosystem, Integrated Production Facilities and Open EU Foundries should be considered to be in the Union's economic, security, and public interest. Ensuring the security of supply of semiconductors is important also for digitalisation that enables the green transition of many other sectors. To contribute towards security of supply of semiconductors in the Union, Member States may apply support schemes and provide for administrative support in national permit granting procedures. This is without prejudice to the competence of the Commission in the field of State aid under Article 107 and 108 of the Treaty, where relevant. Member States should support the set-up of Integrated Production Facilities and Open EU Foundries in accordance with Union law.

Amendment 223 #

Proposal for a regulation
Recital 25

(25) In light of their importance for ensuring the security of supply and enabling a resilient semiconductor ecosystem, Integrated Production Facilities and Open EU Foundries shcould be considered to ~~be in the public~~provide services of general interest. Ensuring the security of supply of semiconductors is important also for digitalisation that enables the green transition of many other sectors. To contribute towards security of supply of semiconductors in the Union, Member States may apply support schemes and provide for administrative support in national permit granting procedures~~. This is without prejudice to the competence of the Commission in the field of State aid under Article 107 and 108 of the Treaty, where relevant~~, to the extent that such support schemes are compatible with applicable state aid rules. Member States should support the set-up of Integrated Production Facilities and Open EU Foundries in accordance with Union law.

Amendment 224 #

Proposal for a regulation
Recital 26

(26) It is necessary that Integrated Production Facilities and Open EU Foundries are set-up as quickly as possible, while keeping the administrative burden to a minimum. For that reason, Member States should treat applications related to the planning, construction and operation of Integrated Production Facilities and Open EU Foundries in the most rapid manner possible. They should appoint an authority which will facilitate and coordinate the permit granting processes and appoint a coordinator, serving as a single point of contact for the project. Moreover, where necessary for granting a derogation under Council Directive 92/43/EEC56 and Directive 2000/60/EC of the European Parliament and Council57 , the establishment and operation of these facilities may be considered as being of overriding public interest within the meaning of the aforementioned legal texts, provided that the remaining other conditions set out in these provisions are fulfilled. _________________ 56 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora. 57 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy.

Amendment 225 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 26

(26) It is necessary that Integrated Production Facilities and Open EU Foundries are set-up as quickly as possible, while keeping the administrative burden to a minimum. For that reason, Member States should treat applications related to the planning, construction and operation of Integrated Production Facilities and Open EU Foundries in the most rapid manner possible. They should appoint an authority which will facilitate and coordinate the permit granting processes and appoint a coordinator, serving as a single point of contact for the project. Moreover, where necessary for granting a derogation under Council Directive 92/43/EEC56 and Directive 2000/60/EC of the European Parliament and Council57 , the establishment and operation of these facilities, which should not prevent the necessary conducting of a climate and environmental impact assessment for every new or retrofitted facility. Extreme weather events, such as the droughts experienced in many ~~be considered as being of overriding public interest~~Member States in Summer of 2022 together within the ~~meaning of the aforementioned legal texts, provided that the remaining other conditions set out in~~significant quantities of water and energy necessary for these provisions are fulfilled. _________________ 56 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora. 57 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policyduction of semiconductors highlight the importance of such climate and environmental impact assessments.

Amendment 226 #

Proposal for a regulation
Recital 26

(26) It is necessary that Integrated Production Facilities and Open EU Foundries are set-up as quickly as possible, while keeping the administrative burden to a minimum. For that reason, Member States should treat applications related to the planning, construction and operation of Integrated Production Facilities and Open EU Foundries in the most rapid manner possible. The Commission, in cooperation with Member States and the European Semiconductor Board, should seek to agree a deadline for approving applications in order to ensure coherence and market agility across the Union in the application of the provisions within this Regulation. They should appoint an authority which will facilitate and coordinate the permit granting processes and appoint a coordinator, serving as a single point of contact for the project. Moreover, where necessary for granting a derogation under Council Directive 92/43/EEC56 and Directive 2000/60/EC of the European Parliament and Council57 , the establishment and operation of these facilities may be considered as being of overriding public interest within the meaning of the aforementioned legal texts, provided that the remaining other conditions set out in these provisions are fulfilled. _________________ 56 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora. 57 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy.

Amendment 227 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 27

Amendment 228 #

Proposal for a regulation
Recital 27

(27) The internal market would greatly benefit from common standards for green, trusted and secure chips. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. To that end, the Union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact. Standards should be set and evaluated in line with comparable international standards, after consultation with international partners, industry stakeholders, and relevant national competent authorities. They should give due regard to the different metrics associated with the assessment of green and cybersecurity credentials. Any benchmarks should also reflect and be compatible with existing standards, legislation and targets of the Union in relevant fields.

Amendment 229 #

Proposal for a regulation
Recital 27

(27) The internal market would greatly benefit from common standards for green, trusted and secure chips. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. Particular attention should be paid to the development of sustainable practices in the manufacturing of chips in Europe. Comprehensive monitoring and due diligence requirements at all stages of the value chain should allow on one hand to curb, mitigate and aim to nullify the environmental impact, while on the other hand guaranteeing quality employment, avoid social dumping and ensure respect of International Labour Organization conventions. To that end, the Union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact.

Amendment 230 #

Proposal for a regulation
Recital 28

(28) In light of this, the Commission, in consultation with the European Semiconductor Board, should prepare the ground for a certification of green, trusted and secure chips and embedded systems that rely on or make extensive use of semiconductor technologies. In particular, they should discuss and identify the relevant sectors and products in need of such certification. The certification of trusted and secure chips should be based on international standards and realized in an open process. In case there is no certification scheme available in order to meet the sector specificities, the Commission should require ENISA to draft a specific certification scheme.

Amendment 231 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 28

Amendment 232 #

Proposal for a regulation
Recital 28

(28) In light of this, the Commission, in consultation with the European Semiconductor Board, should prepare the ground for a certification of green, trusted and secure chips and embedded systems that rely on or make extensive use of semiconductor technologies. In particular, they should discuss and identify the relevant sectors and products in need of such certification. The scheme should be self-certifying and in line with international standards. After 24 months the viability for a mandatory system of certification should be evaluated.

Amendment 233 #

Proposal for a regulation
Recital 29

Amendment 234 #

Proposal for a regulation
Recital 29

(29) When assessing and monitoring the market, the distinction should be made between the structural shortage and the short- or long-term shortage and the fact that the market is growing in cycles of oversupply and shortages. In light of the structural and long-term deficiencies of the semiconductor supply chain and the resulting risk of future structural or long- term shortages, this Regulation provides instruments for a coordinated approach to assessing, monitoring and effectively tackling possible market disruptions.

Amendment 235 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Recital 29

Amendment 236 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tomas TOBÉ, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS, Pernille WEISS

Proposal for a regulation
Recital 29

(29) In light of the global structural ~~deficienc~~challenges and strategic vulnerabilities ofin the semiconductor supply chain and the resulting risk of future shortages, this Regulation provides instruments for a coordinated approach to monitoring and effectively tackling possible market disruptions.

Amendment 237 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI

Proposal for a regulation
Recital 29

Amendment 238 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 30

(30) Due to the complex, quickly evolving and interlinked semiconductor value chains with various actors, a coordinated and approved approach to regular m~~onitor~~apping is necessary to increase the ability to mitigate risks that may negatively affect the supply of semiconductors. Member States 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 239 #

Proposal for a regulation
Recital 30

Amendment 240 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

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 understanding of the value chain as well as the ability to mitigate risks that may negatively affect the supply of semiconductors. Member States and the Commission 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 241 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Recital 30

Amendment 242 #

Proposal for a regulation
Recital 30

Amendment 243 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 31

(31) Any relevant ~~findings, including information~~information, inter alia provided by relevant stakeholders and industry associations, should be provided to the European Semiconductor Board to allow for a regular exchange of information between high- level representatives of Member States, the European Parliament and official observers and for integration of the information into a m~~onitoring overview~~apping of the semiconductor value chains.

Amendment 244 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI

Proposal for a regulation
Recital 31

(31) ~~Any relevant findings, including information provided by relevant stakeholders and industry associations~~Findings that are relevant for the purpose of mitigating risks and/or signalling disruptions in the supply chain, should be provided to the European Semiconductor Board to allow for a regular exchange of information between high- level representatives of Member States and for integration of the information into a monitoring overview of the semiconductor value chains.

Amendment 245 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Sara SKYTTEDAL, Tomas TOBÉ, Angelika NIEBLER, Othmar KARAS, Pernille WEISS

Proposal for a regulation
Recital 31 a (new)

(31 a) The European Semiconductor Board and the Commission should seek to invite international partners to cooperate in this process, and discuss findings and identify shared strategies in forums such as the EU-US Trade and Technology Council, and in bilateral and multilateral meetings with like-minded Indo-pacific nations. Where relevant, representatives of third countries should be invited to address and cooperate with the European Semiconductor Board or sub-groups.

Amendment 246 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Nicola BEER, Andreas GLÜCK

Proposal for a regulation
Recital 32

(32) It is important to take into account the specific insights into the supply situation of users of semiconductors. Therefore, Member States should identify and regularly exchange with the main user categories on their national markets. Furthermore, Member States shcould offer the possibility for relevant stakeholder organisations, including industry associations and representatives of the main user categories, to provide information regarding significant changes in demand and supply, and known disruptions of their supply chain, this could include the unavailability of critical semiconductors or raw materials, longer than average lead-time, delays in delivery and exceptional price surges.

Amendment 247 #

Proposal for a regulation
Recital 32 a (new)

(32 a) In order to ensure a coordinated and holistic monitoring mechanism, the European Semiconductor Board should seek to consider the objectives of the EU Critical Raw Materials Initiative as part of its supply chain monitoring, including coordination on this issue through the European Semiconductor Board. Such monitoring should also include assessment of the impact of any relocation of raw materials and component suppliers outside of the Union, in the context of the Regulation (EC) No 1907/2006 of the European Parliament and of the Council.

Amendment 248 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 32 b (new)

(32 b) 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 and in coordination with the Commission, recommendations for remedying the situation should be provided.

Amendment 249 #

Proposal for a regulation
Recital 33

Amendment 250 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 33

Amendment 251 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

(34) Member States should alert the Commission if relevant factors indicate a potential semiconductor crisis and, if feasible, evaluate and quantify the risk of the potential semiconductor crisis and its impact on the internal market. In order to ensure a coordinated response to address such crises, the Commission should upon the alert by a Member State or through other sources, including information from international partners, convene an extraordinary meeting of the European Semiconductor Board for assessing the need to activate the crisis stage and for discussing whether it may be appropriate, necessary and proportionate for Member States to carry out coordinated joint procurement. In case the joint procurement is considered, the Commission should evaluate and prepare a cost-benefit analysis of how the joint procurement measure helps in mitigating the risks and improving the resilience of the internal market. The Commission should engage in consultations and cooperation with relevant third countries with a view to addressing any disruptions in the international supply chain, in compliance with international obligations and without prejudice to procedural requirements under the Treaty on international agreements.

Amendment 252 #

Proposal for a regulation
Recital 34

(34) Member States should alert the Commission if relevant factors indicate a potential semiconductor crisis. In order to ensure a coordinated response to address such crises, the Commission should upon the alert by a Member State or through other sources, including information from international partners, convene an extraordinary meeting of the European Semiconductor Board for assessing the need to activate the crisis stage and for discussing whether it may be appropriate, necessary and proportionate for Member States to carry out coordinated joint procurement. The Commission should engage in consultations and cooperation with relevant third countries with a view to addressing any disruptions in the international supply chain, in compliance with international obligations and without prejudice to procedural requirements under the Treaty on international agreements. With globalised supply and value chains European resilience is not possible without well-functioning multilateral and bilateral agreements with third countries. The European openness to trade, cooperation and investment leads to economic growth and resilience for the Union.

Amendment 253 #

Bart GROOTHUIS

Proposal for a regulation
Recital 34

(34) Member States should alert the Commission if relevant factors indicate a potential semiconductor crisis. The factors should include third country extra- territorial measures, such as trade embargoes and export restrictions, that halt semiconductor-related supply lines to the Union or its Member States and lead to a crisis. In order to ensure a coordinated response to address such crises, the Commission should upon the alert by a Member State or through other sources, including information from international partners, convene an extraordinary meeting of the European Semiconductor Board for assessing the need to activate the crisis stage and for discussing whether it may be appropriate, necessary and proportionate for Member States to carry out coordinated joint procurement. The Commission should engage in consultations and cooperation with relevant third countries with a view to addressing any disruptions in the international supply chain, in compliance with international obligations and without prejudice to procedural requirements under the Treaty on international agreements.

Amendment 254 #

Proposal for a regulation
Recital 34

(34) Member States should alert the Commission if relevant factors indicate a potential semiconductor crisis. In order to ensure a coordinated response to address such crises, the Commission should upon the alert by a Member State or through other sources, including information from international partners, convene an extraordinary meeting of the European Semiconductor Board for assessing the need to activate the crisis stage and for discussing whether it may be appropriate, necessary and proportionate for Member States to carry out coordinated joint procurement, based on the findings of the impact assessment specified in this act. The Commission should engage in consultations and cooperation with relevant third countries with a view to addressing any disruptions in the international supply chain, in compliance with international obligations and without prejudice to procedural requirements under the Treaty on international agreements.

Amendment 255 #

Bart GROOTHUIS

Proposal for a regulation
Recital 34 a (new)

(34 a) The Union should be able to issue technological defence measures through its semiconductor companies and technology, such as halting software updates and other export controls, in accordance with the principle of necessity and proportionality, in a situation of an illegal hostile takeover of a semiconductor sector abroad.

Amendment 256 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Christophe GRUDLER

Proposal for a regulation
Recital 35

(35) As part of the monitoring, ~~national competent authorities~~the Semiconductor Board should also do a long-term mapping of ~~undertakings operating in the Union along the semiconductor supply chain established in their national territory and notify this information to the Commission~~the dynamics in, as well as the strengths and weaknesses of the semiconductor value chain, including a holistic understanding of the market, the barriers to entry and technology characteristics. Once complete, the mapping could be updated and revised every six months if necessary.

Amendment 257 #

Proposal for a regulation
Recital 35

(35) As part of the monitoring, ~~national competent authorities~~the Semiconductor Board should also do a long-term mapping of the undertakings operating in the Union along the semiconductor supply chain ~~established in their national territory and notify this information to the Commission~~, including identifying the strengths and weaknesses of the semiconductor value chain. The mapping should be updated every six months, if necessary.

Amendment 258 #

Proposal for a regulation
Recital 35

Amendment 259 #

Proposal for a regulation
Recital 35

Amendment 260 #

Proposal for a regulation
Recital 35

(35) ~~As part of the monitoring, n~~National competent authorities should also do a mapping of undertakings operating in the Union along the semiconductor supply chain established in their national territory and ~~notify~~provide this information to the Commission.

Amendment 261 #

Proposal for a regulation
Recital 36

(36) In order to facilitate effective monitoring, in-depth assessment of the risks associated with different stages of the semiconductor value chain is needed, including on the origins and sources of supplies beyond the Union. Such risks may be related to critical inputs and equipment for the industry, including digital products that may be vulnerable, possible impact of counterfeit semiconductors, manufacturing capacities and other risks that may disrupt, compromise or negatively affect the supply chain. Those risks could include supply chains with a single point of failure or which are otherwise highly concentrated. Other relevant factors could include the availability of substitutes or alternative sources for critical inputs and resilient and sustainable transport. The Commission should, assisted by the European Semiconductor Board and taking also into account information received from the main user categories, develop a Union level risk assessmentapping the Commission shall propose a methodology for mapping the relevant semiconductor value chains. This methodology shall be approved by the European Semiconductor Board.

Amendment 262 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Mauri PEKKARINEN, Christophe GRUDLER

Proposal for a regulation
Recital 36

(36) In order to facilitate effective monitoring, in-depth assessment of the risks associated with different stages of the semiconductor value chain is needed, including on the origins and sources of supplies beyond the Union. Such risks may be related to critical inputs and equipment for the industry, including digital products that may be vulnerable, possible impact of counterfeit semiconductors, manufacturing capacities and other risks that may disrupt, compromise or negatively affect the supply chain, including availability in the Union of parasitic copies, slavish imitations or otherwise infringing semiconductors produced by exploiting unauthorized access of trade secrets or copyrighted works embedded in original semiconductors, after circumventing any applied technological protective measures. Those risks could also include supply chains with a single point of failure or which are otherwise highly concentrated. Other relevant factors could include the availability of substitutes or alternative sources for critical inputs and resilient and sustainable transport. The Commission should, assisted by the European Semiconductor Board and taking also into account information received from the main user categories, develop a Union level risk assessment. Moreover, appropriate measures, procedures and remedies must be provided to ensure the availability of civil redress against the unauthorized acquisition or use of trade secrets or copyrighted works embedded in semiconductors.

Amendment 263 #

Proposal for a regulation
Recital 36

(36) In order to facilitate effective monitoring, in-depth assessment of the risks associated with different stages of the semiconductor value chain is needed, including on the origins and sources of supplies beyond the Union. Such risks may be related to critical inputs and equipment for the industry, including digital products that may be vulnerable, possible impact of counterfeit semiconductors, manufacturing capacities and other risks that may disrupt, compromise or negatively affect the supply chain. Those risks could include supply chains with a single point of failure or which are otherwise highly concentrated. Other relevant factors could include the availability of substitutes or alternative sources for critical inputs and resilient and sustainable transport. The Commission should, assisted by the European Semiconductor Board and taking also into account information received from the main user categories, develop a Union level risk assessment. In case of unauthorised acquisition or use of trade secrets or copyrighted works embedded in semiconductors, suitable measures and procedures should be provided to give the possibility of civil redress to affected parties, without prejudice to Directive (EU) 2019/790.

Amendment 264 #

Amendment 265 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Recital 36

Amendment 266 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 37

(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, assisted by the European Semiconductor Board, identify early warning indicators in the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. Member States should monitor these early warning indicatorsand based on the mapping of the semiconductor value chain, identify early warning indicators and conduct a Union risk assessment.

Amendment 267 #

Proposal for a regulation
Recital 37

(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, assisted by the European Semiconductor Board, identify and establish early warning indicators in the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, de-localisations or acquisitions of key market actors. Member States should monitor these early warning indicators. Industry stakeholders should be encouraged to do the same. The European Semiconductor Board and the Commission should establish mechanisms to provide guidance to industry on monitoring and reporting, in particular for start-ups and SMEs.

Amendment 268 #

Proposal for a regulation
Recital 37

(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, assisted by the European Semiconductor Board, identify early warning indicators in the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. Member States should monitor these early warning indicators based on available information cooperating with businesses on a voluntary basis. The indicators should be published and regularly reviewed.

Amendment 269 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Recital 37 a (new)

(37 a) In order to increase the Union’s global role in the semiconductor ecosystem and its value chain, due consideration must be paid to the demand for the underlying critical raw materials and gasses. Member States and the Commission should ensure that the Union does not create a new dependency, but rather a sustainable supply chain for critical raw materials and gasses that is prioritized and in line with the Statement on Critical Raw Materials Act.

Amendment 270 #

Proposal for a regulation
Recital 39 a (new)

Amendment 271 #

Proposal for a regulation
Recital 40

Amendment 272 #

Proposal for a regulation
Recital 40

(40) As part of the m~~onitor~~apping, Member States could specifically consider the availability and integrity of the services and goods of key markets actors. Such issues could be brought to the attention of the European Semiconductor Board by the Member State concerned.

Amendment 273 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 42

(42) The semiconductor crisis stage should be triggered in the presence of concrete, serious, and reliable evidence of such a crisis. A semiconductor crisis occurs i~~n case of serious~~f there is a serious and extraordinary disruptions to the supply of semiconductors, leading to a significant shortages which entail significant delays and negative effects on one or more important economic sectors in the Union, either directly or through ripple effects of the shortage, given that the Union’s industrial sectors represent a strong user base of semiconductors. Alternatively or in addition, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which prevent the supply, repair and maintenance of essential products used by critical sectors, for instance medical and diagnostic equipment. of products or services, which poses a serious and immediate threat to the functioning, health, economy, and security and defence of the Member States and Union citizens;

Amendment 274 #

Proposal for a regulation
Recital 42

(42) The semiconductor crisis stage should be triggered in the presence of concrete, serious, and reliable evidence of such a crisis. A ‘semiconductor crisis ~~occurs in cas~~’ means the existence of serious disruptions toin the ~~supply of~~ semiconductors supply chain, leading to significant shortages which entail significant delays and negative effects on one or more important economic sectors in the Union, either directly or through ripple effects of the shortage, given that the Union’s industrial sectors represent a strong user base of semiconductors. Alternatively or in addition, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages whichof semiconductors, intermediate products or raw and processed materials, at any link of the semiconductor value chain, which demonstrably prevents the supply, repair and maintenance of essential products ~~used by critical sectors, for instance medical and diagnostic equipm~~of the semiconductor supply chain itself or the normal functioning of critical sectors in providing essential goods and services to Union citizents.

Amendment 275 #

Proposal for a regulation
Recital 42

(42) The semiconductor crisis stage should be triggered in the presence of concrete, serious, quantified or, in the absence of sufficient information, duly estimated and reliable evidence of such a crisis. A semiconductor crisis occurs in case of serious disruptions to the supply of semiconductors leading to significant long- term structural shortages which entail significant delays and negative effects on one or more important economic sectors in the Union, either directly or through ripple effects of the shortage, given that the Union’s industrial sectors represent a strong user base of semiconductors. Alternatively or in addition, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant long- term structural shortages which prevent the supply, repair and maintenance of essential products used by critical sectors, for instance medical and diagnostic equipment.

Amendment 276 #

Proposal for a regulation
Recital 43

Amendment 277 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Recital 43

Amendment 278 #

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~~only after having consulted the European Semiconductor Board and after fully having taken into consideration its opinion, by means of delegated acts and for a predetermined duration period, taking into account the opinion of the European Semiconductor Board. The Commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period, based on an additional delegated act, should such a necessity be ascertained, taking into account the opinion of the European Semiconductor Board.

Amendment 279 #

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 acts and for a predetermined duration period, taking into account the opinion of the European Semiconductor Board and relevant market stakeholders. The Commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period, should such a necessity be ascertained, taking into account the opinion of the European Semiconductor Board and relevant market stakeholders.

Amendment 280 #

Proposal for a regulation
Recital 44

(44) Close cooperation between the Commission ~~and~~ the Member States and relevant industrial stakeholders, representing both the semiconductors sector and critical sectors where semiconductors are used, for coordination of any national measures taken with regard to the semiconductor supply chain is indispensable during the crisis stage with a view to addressing disruptions with the necessary coherence, resiliency and effectiveness, while ensuring the confidentiality of information and data obtained in carrying out these tasks. To this end, the European Semiconductor Board should hold extraordinary meetings as necessary. Any measures taken should be strictly limited to the duration period of the crisis stage.

Amendment 281 #

Proposal for a regulation
Recital 44

Amendment 282 #

Proposal for a regulation
Recital 44

(44) Close cooperation between the Commission and the Member States and coordination of any national measures taken with regard to the semiconductor supply chain is indispensable during the crisis stage with a view to addressing disruptions with the necessary coherence, resiliency and effectiveness. To this end, the European Semiconductor Board should hold extraordinary meetings as necessary. Any such measures ~~taken~~ should be fully based on the findings of the impact assessment outlined in this Regulation and strictly limited to the duration period of the crisis stage.

Amendment 283 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Cătălin Sorin IVAN

Proposal for a regulation
Recital 44

(44) Close cooperation between the Commission ~~and the~~, Member States and industry stakeholders, and coordination of any national measures taken with regard to the semiconductor supply chain is indispensable during the crisis stage with a view to addressing disruptions with the necessary coherence, resiliency and effectiveness. To this end, the European Semiconductor Board should hold extraordinary meetings as necessary. Any measures taken should be strictly limited to the duration period of the crisis stage.

Amendment 284 #

Proposal for a regulation
Recital 44

Amendment 285 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Recital 44

(44) Close cooperation between the Commission ~~and the~~, Member States and industry stakeholders and coordination of any national measures taken with regard to the semiconductor supply chain is indispensable during the crisis stage with a view to addressing disruptions with the necessary coherence, resiliency and effectiveness. To this end, the European Semiconductor Board should hold extraordinary meetings as necessary. Any measures taken should be strictly limited to the duration period of the crisis stage.

Amendment 286 #

Proposal for a regulation
Recital 45

Amendment 287 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN

Proposal for a regulation
Recital 45

(45) Appropriate, effective and proportionate measures should be identified and implemented when the crisis stage is activated without prejudice to possible continued international engagement with relevant partners with the view to mitigating the evolving crisis situation. Where appropriate, the Commission should request information from undertakings along the semiconductor supply chain. Furthermore, the Commission should be able to, where necessary and proportionate, oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of the production of crisis-relevant products, and to act as a central purchasing body when mandated by Member States. The Commission cshould limit the measures to ~~certain critical sector~~the critical sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities and the defence sector. This priority order mechanism should be considered a last resort measure. The beneficiary of such a priority order has a due-diligence obligation and should be able to show that it has exhausted all other preventative mitigation measures, such as finding alternative suppliers or creating stockpiles. In addition, the European Semiconductor Board may advise on the necessity of introducing an export control regime pursuant to Regulation (EU) 2015/479 of the European Parliament and of the Council60 . The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures should be proportionate and restricted to what is necessary to address the significant disturbances at stake insofar as this is in the best interest of the Union. The Commission should regularly inform the European Parliament and the Council of the measures taken and the underlying reasons. The Commission may, after consulting with the Board, issue further guidance on the implementation and use of the emergency measures. _________________ 60 Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34).

Amendment 288 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Recital 45

(45) Appropriate, effective and proportionate measures shthat do not exceed what is necessary to rectify the immediate crisis could be identified and implemented when the crisis stage is activated without prejudice to possible continued international engagement with relevant partners with the view to mitigating the evolving crisis situation. Where appropriate, the Commission shcould request information from undertakings along the semiconductor supply chain. Furthermore, the Commission should be able to~~, where necessary and proportionate,~~ act as a central purchasing body when mandated by Member States. In extraordinary circumstances, the Commission should be able to oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of the production of crisis-relevant products, ~~and to act as a central purchasing body when mandated by Member States. The Commission~~in such cases where it is necessary and proportionate to ensure the basic operation of critical sectors. Before enacting any such decision, the Commission should consult the European Seiconductor Board. Furthermore, the Commission should consult the European Semiconductor Board on the proportionality of all proposed emergency actions and could limit the measures to certain critical sectors. In addition, the European Semiconductor Board may advise on the necessity of introducing an export control regime pursuant to Regulation (EU) 2015/479 of the European Parliament and of the Council60 . The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures should be proportionate and restricted to what is necessary to address the significant disturbances at stake insofar as this is in the best interest of the Union. The Commission should regularly inform the European Parliament and the Council of the measures taken and the underlying reasons. The Commission may, after consulting with the Board, issue further guidance on the implementation and use of the emergency measures. _________________ 60 Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34).

Amendment 289 #

Proposal for a regulation
Recital 45

(45) Appropriate, effective and proportionate measures should be identified and implemented when the crisis stage is activated without prejudice to possible continued international engagement with relevant partners with the view to mitigating the evolving crisis situation. Where appropriate, the Commission ~~should~~may have the authority to request information from undertakings along the semiconductor supply chain. Furthermore, the Commission should be able to, where necessary and proportionate, oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of the production of crisis-relevant products, and to act as a central purchasing body when mandated by Member States. The Commission ~~could~~must limit the measures to certain critical sectors. In addition, the European Semiconductor Board ~~may advise on the necessity of introducing an export control regime pursuant to Regulation (EU) 2015/479 of the European Parliament and of the Council60~~ should engage in consultations and cooperation with business representatives and relevant third countries with a view to addressing any disruptions in the international supply chain. The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures ~~should~~must be proportionate ~~and~~, restricted and be carried out in the manner which is the least disruptive to international cooperation and trade. The restrictions must restricted to what is absolutely necessary to address the significant disturbances at stake insofar as this is in the best interest of the Union. The Commission should regularly inform the European Parliament and the Council of the measures taken and the underlying reasons. The Commission may, after consulting with the Board, issue further guidance on the implementation and use of the emergency measures. ~~_________________ 60 Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34)~~Requests to access information, which may be company secrets, must be used responsibly, not putting inappropriate administrative burden on companies and minimizing risks for affected companies.

Amendment 290 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 45

(45) Appropriate, effective and proportionate measures should be identified and implemented when the crisis stage is activated without prejudice to possible continued international engagement with relevant partners with the view to mitigating the evolving crisis situation. Where appropriate, the Commission should request information from undertakings along the semiconductor supply chain. Furthermore, the Commission should be able to, where necessary and proportionate, oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of the production of crisis-relevant products, and to act as a central purchasing body when mandated by Member States. The Commission could limit the measures to certain critical sectors. In addition, the European Semiconductor Board may ~~advise on~~on the basis of clear evidence following detailed consultation with representatives of the semiconductor industry and where necessary international partners, recommend the necessity of introducing an export control regime pursuant to Regulation (EU) 2015/479 of the European Parliament and of the Council60 . The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures should be proportionate and restricted to what is necessary to address the significant disturbances at stake insofar as this is in the best interest of the Union. The Commission should regularly inform the European Parliament and the Council of the measures taken and the underlying reasons. The Commission may, after consulting with the Board, issue further guidance on the implementation and use of the emergency measures. ~~_________________ 60 Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34).~~

Amendment 291 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

(46) ~~A number of sectors are critical for the proper functioning of the internal market. Those c~~Critical sectors are the sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities61 as well as the producers of renewable energy, storage and distribution and transmission equipment. For the purposes of this Regulation, defence and other activities that are relevant for public safety and security should be additionally considered as a critical sector. Certain measures should only be enacted fur the purpose of securing supply to critical sectors. The Commission may limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation. _________________ 61 COM(2020) 829. 16.12.2020.

Amendment 292 #

Proposal for a regulation
Recital 46

(46) A number of sectors are critical for the proper functioning of the internal market. Those critical sectors are the sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities61 . For the purposes of this Regulation, defence and other activities that are relevant for public safety and security ~~should~~may be additionally considered as a critical sectors. Certain measures should only be enacted fur the purpose of securing supply to critical sectors. The Commission may limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation. _________________ 61 COM(2020) 829. 16.12.2020Those critical sectors should be defined by the Commission in cooperation with the European Semiconductor Board.

Amendment 293 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Recital 46

(46) A number of sectors are critical for the proper functioning of the internal market and to preserve the competitiveness of European industries. Those critical sectors are the sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities61 . For the purposes of this Regulation, defence, automotive and other activities that are relevant for public safety and security as well as economic wellness of Europe should be additionally considered as a critical sector. Certain measures should only be enacted fur the purpose of securing supply to critical sectors. The Commission may limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation. _________________ 61 COM(2020) 829. 16.12.2020.

Amendment 294 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN

Proposal for a regulation
Recital 46

Amendment 295 #

Proposal for a regulation
Recital 46

(46) A number of sectors are critical for the proper functioning of the internal market. Those critical sectors are the sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities61 . For the purposes of this Regulation, defence, telecommunication and other activities that are relevant for public safety and security should be additionally considered as a critical sector. Certain measures should only be enacted fur the purpose of securing supply to critical sectors. The Commission may limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation. _________________ 61 COM(2020) 829. 16.12.2020.

Amendment 296 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Angelika NIEBLER

Proposal for a regulation
Recital 47

(47) The purpose of requests for information from undertakings along the semiconductor supply chain established in the Union in the crisis stage is an in-depth assessment of the semiconductor crisis in order to identify potential mitigation or emergency measures at Union or national level. Such information may include production capability, production capacity and current primary disruptions and bottlenecks. These aspects could include the typical and current actual stock of crisis-relevant products in its production facilities located in the Union and third country facilities which it operates or contracts or purchases supply from; the typical and current actual average lead time for the most common products produced; the expected production output for the following three months for each Union production facility; reasons that prevent the filling of production capacity; or other existing data necessary to assess the nature of the semiconductor crisis or potential mitigation or emergency measures at national or Union level. Any request should be proportionate, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, as well as set out appropriate time limits for providing the requested information. Undertakings should be obliged to comply with the request and may be subject to penalties if they fail to comply or provide incorrect information. Any information acquired should be subject to confidentiality rules. Should an undertaking be subject to a request for information related to its semiconductor activities from a third country, it should inform the Commission so to enable an assessment whether an information request by the Commission is warranted.deleted

Amendment 297 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Recital 47

(47) The purpose of requests for information from undertakings along the semiconductor supply chain established in the Union in the crisis stage is an in-depth assessment of the semiconductor crisis in order to identify potential mitigation or emergency measures at Union or national level and to support, in perspective, the independence from third country suppliers. Such information may include production capability, production capacity and current primary disruptions and bottlenecks. These aspects could include the typical and current actual stock of crisis-relevant products in its production facilities located in the Union and third country facilities which it operates or contracts or purchases supply from; the typical and current actual average lead time for the most common products produced; the expected production output for the following three months for each Union production facility; reasons that prevent the filling of production capacity; or other existing data necessary to assess the nature of the semiconductor crisis or potential mitigation or emergency measures at national or Union level. Any request should be proportionate, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, as well as set out appropriate time limits for providing the requested information. Undertakings should be obliged to comply with the request and may be subject to penalties if they fail to comply or provide incorrect information. Any information acquired should be subject to confidentiality rules. Should an undertaking be subject to a request for information related to its semiconductor activities from a third country, it should inform the Commission so to enable an assessment whether an information request by the Commission is warranted.

Amendment 298 #

Proposal for a regulation
Recital 47

(47) The purpose of requests for information from undertakings along the semiconductor supply chain established in the Union in the crisis stage is an in-depth assessment of the semiconductor crisis in order to identify potential mitigation or emergency measures at Union or national level. Such information may include production capability, production capacity and current primary disruptions and bottlenecks. These aspects could include the typical and current actual stock of crisis-relevant products in its production facilities located in the Union and third country facilities which it operates or contracts or purchases supply from; the typical and current actual average lead time for the most common products produced; the expected production output for the following three months for each Union production facility; reasons that prevent the filling of production capacity; or other existing data necessary to assess the nature of the semiconductor crisis or potential mitigation or emergency measures at national or Union level. Any request should be proportionate, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, as well as set out appropriate time limits for providing the requested information. Undertakings should be obliged to comply with the request and may be subject to penalties if they fail to comply or provide incorrect information. Any information acquired should be subject to confidentiality rules. Should an undertaking be subject to a request for information related to its semiconductor activities from a third country, it should inform the Commission ~~so to enable an assessment whether an information request by the Commission is warranted~~.

Amendment 299 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Recital 47

Amendment 300 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Recital 48

Amendment 301 #

(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 cshould be oabl~~iged by the Commission~~e, on a voluntary basis, to accept and prioritise orders of crisis-relevant products. This obligation may also be extended to semiconductor manufacturing facilities which have accepted such possibility in the context of receiving public support. The decision on a priority rated order should be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case. The priority rating obligation should take precedence over any performance obligation under private or public law while it should have regard for the legitimate aims of the undertakings and the cost and effort required for any change in production sequence decision on a priority rated order should be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case. Undertakings may be subject to penalties if they fail to comply with the obligation for priority rated orders.

Amendment 302 #

Proposal for a regulation
Recital 48

Amendment 303 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

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. This obligation may also be extended to semiconductor manufacturing facilities which have accepted such possibility in the context of receiving public support. The decision on a priority rated order should be taken in accordance with all applicable Union legal obligations and in consultation with the European Semiconductor Board and following a crisis assessment report, having regard to the circumstances of the case. The priority rating obligation should take precedence over any performance obligation under private or public law while it should have regard for the legitimate aims of the undertakings and the cost and effort required for any change in production sequence. Undertakings may be subject to penalties if they fail to comply with the obligation for priority rated orders.

Amendment 304 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

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. This obligation may also be extended to semiconductor manufacturing facilities which have accepted such possibility in the context of receiving public support to create or enlarge manufacturing capacity. The decision on a priority rated order should be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case. The priority rating obligation should take precedence over any performance obligation under private or public law while it should have regard for the legitimate aims of the undertakings and the cost and effort required for any change in production sequence. Undertakings may be subject to penalties if they fail to comply with the obligation for priority rated orders.

Amendment 305 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Recital 49

Amendment 306 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 49

Amendment 307 #

Proposal for a regulation
Recital 49

(49) The undertaking concerned should on a voluntary basis be oabl~~iged to~~e accept and prioritise a priority rated order. In exceptional and duly justified cases, the undertaking could request the Commission to review the imposed obligation. This applies either where the facility is unable to fulfil the order even if prioritised, be it due to insufficient production capability or production capacity, or because this would place an unreasonable economic burden and entail particular hardship on the facility.

Amendment 308 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 50

Amendment 309 #

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 should inform the Commission of this request, so as to inform an assessment of whether, if there is a significant impact on the security of supply to critical sectors, and the other requirements of necessity, proportionality and legality are satisfied in the circumstances of the case~~, the Commission should likewise enact a priority rated order obligation~~.

Amendment 310 #

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 potentially within scope of a priority rated order should anticipate this possibility in the conditions of their commercial contracts. Without prejudice to the applicability of other provisions, the liability for defective products, as provided for by Council Directive 85/374/EEC of 25 July 198562 , is not affected by this liability exemption. _________________ 62 Council Directive 85/374/EEC of 25 July 1985 on the approximation of the laws, regulations and administrative provisions of the Member States concerning liability for defective products (85/374/EEC) (OJ L 210, 7.8.1985, p. 29).deleted

Amendment 311 #

Proposal for a regulation
Recital 52

(52) The obligation to prioritise the production of certain products respects the essence of and will not disproportionately affect the freedom to conduct a business and the freedom of contract laid down in Article 16 of the Charter of Fundamental Rights of the European Union (‘the Charter’) and the right to property laid down in Article 17 of the Charter. Any limitation of those rights in this Regulation will, in accordance with Article 52(1) of the Charter, be provided for by law, respect the essence of those rights and freedoms, and comply with the principle of proportionality.deleted

Amendment 312 #

Proposal for a regulation
Recital 52 a (new)

(52 a) The decision to impose an obligation to prioritise the production of certain products should not negatively affect the competitiveness of undertakings operating on the internal market. In this respect, special consideration should be given to the importance of trust in commercial relations as well as to business services reliability.

Amendment 313 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 53

(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 certain critical sectors. The Commission should assess for each request the utility, necessity and proportionality in consultation with the Board. The Commission should also assess and quantify the effectiveness of other available measures in order to limit the threat to the functioning of the internal market, including critical entities. Where it intends to not follow the request, it should inform the concerned Member States and the Board and ~~give~~publish its reasons. Furthermore, the participating Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. The deployment and use of purchased products should remain within the remit of the participating Member States.

Amendment 314 #

Proposal for a regulation
Recital 53

(53) When the crisis stage is activated, ~~two or more~~ Member States ~~could~~may 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~~may authorise the Commission to enter into agreements concerning the purchase of crisis-relevant products for certain critical sectors. The Commission should assess for each request the utility, necessity and proportionality, and relevance and importance for the Union, in consultation with the Board. Where it intends to not follow the request, it should inform ~~the concerned~~ Member States and the Board and give its reasons. Furthermore, ~~the participating~~ Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. ~~The deployment and use of purchased products should remain within the remit of the participating Member States.~~

Amendment 315 #

Proposal for a regulation
Recital 53

(53) When the crisis stage is activated, fully based on the findings of the impact assessment outlined in this Regulation, 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 certain critical sectors. The Commission should assess for each request the utility, necessity and proportionality in consultation with the Board. Where it intends to not follow the request, it should inform the concerned Member States and the Board and give its reasons. Furthermore, the participating Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. The deployment and use of purchased products should remain within the remit of the participating Member States.

Amendment 316 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Recital 53

(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 (raw material, intermediate products) for certain critical sectors. The Commission should assess for each request the utility, necessity and proportionality in consultation with the Board. Where it intends to not follow the request, it should inform the concerned Member States and the Board and give its reasons. Furthermore, the participating Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. The deployment and use of purchased products should remain within the remit of the participating Member States.

Amendment 317 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Recital 54

(54) During a semiconductor shortage crisis, ~~it might become necessary that the Union considers~~the findings of the impact assessment outlined in this Regulation should indicate whether Union protective measures can significantly contribute to solving thesemi conductor crisis, taking also into consideration potential second round effects of such protective measures. The European Semiconductor Board ~~may~~should express its views to inform the Commission’s assessment of whether the market situation amounts to a significant shortage of essential products pursuant to Regulation (EU) 2015/479 and whether it agrees with the conclusion of the Commission, which are based the findings of the impact assessment outlined in this act, regarding the necessity of protective measures.

Amendment 318 #

Proposal for a regulation
Recital 54

(54) During a semiconductor shortage crisis, ~~it might become necessary that the Union considers protective measur~~the Union may only consider protective measures if all other measures have been investigated. Measures damaging international cooperation, trade agreements and relations with third countries must be avoided at all costs, as they will damage the Union's relations with third countries and can have unpredictable consequences. The European Semiconductor Board may express its views to inform the Commission’s assessment of whether the market situation amounts to a significant shortage of essential products pursuant to Regulation (EU) 2015/479.

Amendment 319 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Recital 54

(54) During a semiconductor shortage crisis, it might become necessary and proportionate that the Union considers protective measures. The European Semiconductor Board may express its views to inform the Commission’s assessment of whether the market situation amounts to a significant shortage of essential products pursuant to Regulation (EU) 2015/479.

Amendment 320 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 55

(55) In order to facilitate a smooth, effective and harmonised implementation of this Regulation, cooperation and the exchange of information, the European Semiconductor Board should be established. The European Semiconductor Board should provide advice to and assist the Commission on specific questions~~. These s~~ and provide a forum for Member States and industry stakehould ~~include providing~~ers from across the Union to coordinate and cooperate in the monitoring and development of the Union's semiconductor ecosystem. The European Semiconductor Board should provide advice on the Chips for Europe Initiative to the Public Authorities Board of the Chips Joint Undertaking; exchanging information on the functioning of the Integrated Production Facilities and Open EU Foundries; discussing and preparing the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products and addressing coordinated monitoring and crisis response. Furthermore, the European Semiconductor Board should ensure the consistent application of this Regulation, facilitate cooperation between Member States as well as exchange of information on issues relating to this Regulation. The European Semiconductor Board should support the Commission in international cooperation in line with international obligations, including in information gathering, dialogue, and crisis assessment. In addition, the European Semiconductor Board should coordinate, cooperate and exchange information with other Union crisis response and crisis preparedness structures with a view to ensure a coherent and coordinated Union approach as regards crisis response and crisis preparedness measures for semiconductor crises.

Amendment 321 #

Proposal for a regulation
Recital 55

(55) In order to facilitate a smooth, effective and harmonised implementation of this Regulation, cooperation and the exchange of information, the European Semiconductor Board should be established. The European Semiconductor Board should provide advice to and assist the Commission on specific questions. These should include providing advice on the Chips for Europe Initiative to the Public Authorities Board of the Chips Joint Undertaking; exchanging information on the functioning of the Integrated Production Facilities and Open EU Foundries; discussing and preparing the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products and addressing coordinated monitoring and crisis response. Furthermore, the European Semiconductor Board should ensure the consistent application of this Regulation, facilitate cooperation between Member States as well as exchange of information on issues relating to this Regulation. The European Semiconductor Board should support the Commission in international cooperation in line with international obligations, including in information gathering and crisis assessment. In addition, the European Semiconductor Board should coordinate, cooperate and exchange information with other Union crisis response and crisis preparedness structures with a view to ensure a coherent and coordinated Union approach as regards crisis response and crisis preparedness measures for semiconductor crises. The European Semiconductor board should approve the methodology, proposed by the Commission, for the mapping of the relevant semi conductor value chains.

Amendment 322 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Sara SKYTTEDAL, Tomas TOBÉ, Angelika NIEBLER, Othmar KARAS, Pernille WEISS

Proposal for a regulation
Recital 56

(56) A representative of the Commission should chair the European Semiconductor Board. Each Member State’s national single point of contact should appoint at least one high-level representative to the European Semiconductor Board. They Board should include representatives from the semiconductor industry, such as the Industrial Alliance on Processors and Semiconductor Technologies, who should not possess voting rights. Member States could also appoint different representatives in relation to different tasks of the European Semiconductor Board, for example, depending on which Chapter of this Regulation is discussed in the meetings of the European Semiconductor Board. The Commission may establish sub-groups and should be entitled to establish working arrangements by inviting experts to take part in the meetings on an ad hoc basis or by inviting organisations representing the interests of the Union semiconductors industry, such as the Industrial Alliance on Processors and Semiconductor Technologies, in its sub-groups as observer, industry stakeholders, or representatives from third countries to take part in the meetings on an ad hoc basis.

Amendment 323 #

Proposal for a regulation
Recital 56

(56) A representative of the Commission should chair the European Semiconductor Board. Each Member State’s national single point of contact as well as the European Parliament should appoint at least one high-level representative to the European Semiconductor Board. They could also appoint different representatives in relation to different tasks of the European Semiconductor Board, for example, depending on which Chapter of this Regulation is discussed in the meetings of the European Semiconductor Board. The Commission may establish sub-groups and should be entitled to establish working arrangements by inviting experts to take part in the meetings on an ad hoc basis or by inviting organisations representing the interests of the Union semiconductors industry, such as the Industrial Alliance on Processors and Semiconductor Technologies, in its sub-groups as observers.

Amendment 324 #

Proposal for a regulation
Recital 57

(57) The European Semiconductor Board will hold separate meetings for its tasks under Chapter II and for its tasks under Chapter III and IV. Member States should endeavour to ensure effective and efficient cooperation in the European Semiconductor Board. The Commission should be able to facilitate exchanges between the European Semiconductor Board and other Union bodies, offices, agencies and advisory groups. In light of the importance of the supply of semiconductors for other sectors and the resulting need for coordination, the Commission should ensure participation by other Union institutions and bodies as observers in meetings of the European Semiconductor Board where relevant and appropriate in relation to the monitoring and crisis response mechanism established under Chapter IV. In order to continue and make use of the work following the implementation of Commission Recommendation on a common Union toolbox to address semiconductor shortages, the European Semiconductor Board should carry out the tasks of the European Semiconductor Expert Group. Once the European Semiconductor Board is operational, this expert group should cease to exist.

Amendment 325 #

Proposal for a regulation
Recital 58

(58) Member States hold a key role in the application and enforcement of this Regulation. In this respect, each Member State should designate one or more national competent authorities for the purpose of effective implementation of this Regulation ~~and ensure that those authorities are~~. The Commission and Member States should ensure that the relevant administrative bodies have the necessary level of expertise and adequately empowered and resourced. Member States could designate an existing authority or authorities. In order to increase organisation efficiency in the Member States and to set an official point of contact vis-a-vis the public and other counterparts at Member State and Union levels, including the Commission and the European Semiconductor Board, each Member State should designate, within one of the authorities it designated as competent authority under this Regulation, one national single point of contact responsible for coordinating issues related to this Regulation and cross-border cooperation with competent authorities of other Member States.

Amendment 326 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Recital 59

(59) In order to ensure trustful and constructive cooperation of competent authorities at Union and national level, all parties involved in the application of this Regulation should strictly respect the confidentiality of information and data obtained in carrying out their tasks. 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 should not disclose information acquired or exchanged by them pursuant to this Regulation and of the kind covered by the obligation of professional secrecy. This should also apply to the European Semiconductor Board and the Semiconductor Committee established in this Regulation. Where appropriate, the Commission should be able to adopt implementing acts to specify the practical arrangements for the treatment of confidential information in the context of information gathering. Any breach of this confidentiality should result in a full investigation by the Commission, and if and where necessary, the Commission should revise the practical arrangements and guidance for the treatment of confidential information.

Amendment 327 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Recital 59

Amendment 328 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Christophe GRUDLER

Proposal for a regulation
Recital 59 a (new)

(59 a) Innovative businesses are increasingly exposed to unlawful or anticompetitive practices aimed at misappropriating intellectual property and trade secrets, such as theft, unauthorised copying, industrial espionage or the breach of confidentiality requirements from outside the Union, particularly in high-technology fields like the semiconductor sector. Intellectual property theft or the unlawful use of trade secrets in the semiconductor sector could compromise the objectives of the Chips Act by inhibiting the ability of private holders of intellectual property to obtain legitimate first-mover returns from their innovation-related efforts and thus diminish incentives for private investment. In the absence of the effective enforcement of the existing rules for the protection of intellectual property in third countries, incentives to engage in innovation-related activity beyond the borders of the internal market could therefore be undermined. This Regulation should therefore ensure the effective enforcement of intellectual property law in the semiconductor sector, in full respect of Directives (EU) 2016/9431a and 2004/48/EC1b of the European Parliament and of the Council. Further more, it introduces stricter terms for beneficiaries for engaging in significant transactions in third countries with an intellectual property theft programme directed at the Union of a Member State.

Amendment 329 #

Proposal for a regulation
Recital 60

(60) Compliance with the obligations imposed under this Regulation should be enforceable by means of fines and periodic penalty payments. To that end, appropriate levels of fines and periodic penalty payments should also be laid down for non-compliance with the obligations. Limitation periods should apply for the impositions of fines and periodic penalty payments, in addition to limitation periods for the enforcement of penalties. In addition, the Commission should give the concerned undertaking or representative organisations of undertakings the right to be heard.deleted

Amendment 330 #

Proposal for a regulation
Recital 61

(61) The power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission in order to amend Annex I to this Regulation to reflect technological change and market developments, with regard to the actions set out therein in a manner fully consistent with the objectives of this Regulation and to amend Annex II thereto with regard to the measurable indicators where considered to be necessary as well as to supplement this Regulation with provisions on the establishment of a monitoring and evaluation frameworkspecified in this Regulation. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making63 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. _________________ 63 OJ L 123, 12.5.2016, p. 1.

Amendment 331 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Recital 62

(62) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards the selection of ECICs and as regards the procedure for establishing and defining the tasks of competence centres and the procedure for establishing the network, so that the objectives of the Initiative are achieved. Furthermore, implementing powers should be conferred on the Commission as regards activating the crisis stage in a semiconductor crisis, to allow a rapid and coordinated response, and for specifying the practical arrangements for the treatment of confidential information, including trade secrets or content protected by intellectual property right. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council64 of the European Parliament and of the Council. _________________ 64 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers, (OJ L 55, 28.2.2011, p. 13).

Amendment 332 #

Proposal for a regulation
Recital 62

(62) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards the selection of ECICs and as regards the procedure for establishing and defining the tasks of competence centres and the procedure for establishing the network, so that the objectives of the Initiative are achieved. Furthermore, implementing powers should be conferred on the Commission as regards activating the crisis stage in a semiconductor crisis, to allow a rapid and coordinated response, ~~and for specifying the practical arrangements for the treatment of confidential inform~~which should be fully based on the findings of the impact assessment outlined in this Regulation. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council64 of the European Parliament and of the Council. _________________ 64 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers, (OJ L 55, 28.2.2011, p. 13).

Amendment 333 #

Proposal for a regulation
Recital 63

(63) Since the objective of this Regulation cannot be sufficiently achieved by the Member States and can rather, by reason of the scale or effects of the action, be better achieved at Union level, the Union may only adopt measures that are fully based on the findings of the impact assessment outlined in this Regulation and that are in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

Amendment 334 #

Proposal for a regulation
Article 1 – paragraph 1 – point b

(b) setting the criteria to recognise and to support first-of-a-kind or of a common interest Integrated Production Facilities and Open EU Foundries that foster the security of supply ~~of semiconductor~~and the resilience of the semiconductor ecosystems and deployment of novel and innovative semiconductor technologies in the Union;

Amendment 335 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

Proposal for a regulation
Article 1 – paragraph 1 – point b

Amendment 336 #

Proposal for a regulation
Article 1 – paragraph 1 – point b

Amendment 337 #

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism between the Member States ~~and~~ the Commission ~~for monitoring the supply of semiconductors and crisis response to semiconductor shortage~~, stakeholders from the semiconductor supply chain as well as stakeholders from critical sectors that might be affected by disruptions to the supply of semiconductors for mapping and monitoring the semiconductor supply chain and identify potential bottlenecks with publicly and commercially available data as well as data voluntarily provided by the stakeholders, and articulating crisis prevention and management tools.

Amendment 338 #

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism between the Member States ~~and the Commission~~, the Commission and the actors in the semiconductor value chain, for mapping the semiconductor value chain and for monitoring the supply of semiconductors and crisis prevention and response to semiconductor shortages, including support for manufacturing and supply of existing technology semiconductors which are used in critical infrastructures.

Amendment 339 #

Proposal for a regulation
Article 1 – paragraph 1 – point c

Amendment 340 #

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism between the Member States and the Commission for monitoring the supply of semiconductors and crisis response to semiconductor shortages in specific cases.

Amendment 341 #

Adriana MALDONADO LÓPEZ, Lina GÁLVEZ MUÑOZ, Maria-Manuel LEITÃO-MARQUES, Tsvetelina PENKOVA, Nicolás GONZÁLEZ CASARES, Marcos ROS SEMPERE, Alicia HOMS GINEL

Proposal for a regulation
Article 2 – paragraph 1 – point 1 – point a

(a) a material, either elemental, such as Silicon, or compound, such as Silicon Carbide or Indium Phosphide, whose electrical conductivity or optical performance can be modified, or

Amendment 342 #

Proposal for a regulation
Article 2 – paragraph 1 – point 2

(2) ‘chip’ means an electronic device comprising various functional elements on a single piece of semiconductor material, typically taking the form of memory, logic, processor, light information or signal detector, signal generator and analogue devices, also referred to as ‘integrated circuit’;

Amendment 343 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 2 – paragraph 1 – point 4

(4) ‘semiconductor supply chain’ means the system of activities, organisations, actors, technology, information, resources and services involved in the production of semiconductors, including raw materials and gases, manufacturing equipment, design, fabrication, assembly, testing an, packaging and advanced packaging;

Amendment 344 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Article 2 – paragraph 1 – point 4

(4) ‘semiconductor supply chain’ means the system of activities, organisations, actors, technology, information, resources and services involved in the production of semiconductors, including raw materials, intermediate product, manufacturing equipment, design, fabrication, assembly, testing and packaging;

Amendment 345 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Article 2 – paragraph 1 – point 5

(5) ‘semiconductor value chain’ means the set of activities in relation to a semiconductor product from its conception to its end use, including raw materials, intermediate product, manufacturing equipment, research, design, fabrication, testing, assembly and packaging to embedding and validation in end products;

Amendment 346 #

Proposal for a regulation
Article 2 – paragraph 1 – point 10

(10) ‘first-of-a-kind facility’ means a~~n industrial facility capable of semiconductor manufacturing, including front-end or back-end, or both~~ semiconductor manufacturing facility, including front-end or back-end, or both, capable of manufacturing materials or passive components or equipment specifically used in semiconductor manufacturing or process improvements in terms of efficiency and innovation, with regard to the manufacturing process or final product, that is not yet substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance. This includes, but is not limited to, innovation that concerns performance, improvements in computing power or in the level of security, safety or reliability, or in energy and environmental performance, or in the use of a new technology node or processing of raw and substrate material, contributing to the security of chips supply in the internal and export markets or un the implementation of production processes that lead to efficiency or competitiveness gains;

Amendment 347 #

Proposal for a regulation
Article 2 – paragraph 1 – point 10

(10) ‘first-of-a-kind facility’ means a~~n industrial facility capable of semiconductor manufacturing, including front-end or back-end, or both~~ semiconductor manufacturing facility, including front-end or back-end, or both, capable of manufacturing materials or passive components or equipment specifically used in semiconductor manufacturing or process improvements in terms of efficiency and innovation, with regard to the manufacturing process or final product, that is not yet substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance. This includes, but is not limited to, innovation that concerns performance, improvements in computing power or in the level of security, safety or reliability, or in energy and environmental performance, or in the use of a new technology node or processing of raw and substrate material contributing to the security of chips supply in the internal and export markets or in the implementation of production processes that lead to efficiency or competitiveness gains;

Amendment 348 #

(10) ‘first-of-a-kind facility’ means an new or retrofitted industrial facility capable of semiconductor manufacturing or design, including front-end or back-end, or both, or capable of manufacturing materials or equipment specifically used in semiconductor manufacturing, that is not substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, ~~and~~or other product or production innovation that can offer ~~better performance, process innovation or energy and environmental performance~~state-of-the-art performance, increases the recyclability of semiconductors, reduces significantly and demonstrably the required production inputs, such as energy, water, toxic chemicals and heavy metals, demonstrably enables energy savings in other industries and sectors and enables the deployment of renewable energy, storage and transmission capacities;

Amendment 349 #

Proposal for a regulation
Article 2 – paragraph 1 – point 10

(10) ‘first-of-a-kind facility’ means a~~n industrial facility capable of semiconductor manufacturing, including front-end or back-end, or both~~ semiconductor manufacturing facility (Integrated Device Manufacturer or Open Foundry), including new facilities, industrialization, scale-up and modernization of existing facilities, which provides innovation with regard to the manufacturing process or final product, that is not yet substantively ~~already~~ present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance. This includes, but is not limited to, innovation that concerns performance, improvements in computing power or in the level of security, safety or reliability, or in energy and environmental performance, or in the use of a new technology node or substrate material, or the integration of different processes and devices, or in the implementation of production processes that lead to efficiency gains;

Amendment 350 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 2 – paragraph 1 – point 10

(10) ‘first-of-a-kind facility’ means an industrial facility capable of contributing to the semiconductor manufacturing ecosystem, 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 the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performanceand ambitious and innovative as well as aimed at developing technologies and processes that go beyond current technology or that will allow major improvements in performance, process, energy consumption, safety, and environmental impact, and capable of contributing to a common objective, by enabling security of supply for the future of the Union's semiconductor industry, and where relevant, the security of the global semiconductor supply chain.;

Amendment 351 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI

Proposal for a regulation
Article 2 – paragraph 1 – point 10

(10) ‘first-of-a-kind facility’ means: (i) 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 the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance; or (ii) investments in the production of mature technology microchips, in the event of a structural lack of investments on the European market;

Amendment 352 #

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 the technology node, substrate material, such as silicon carbide and gallium nitride, ~~and~~or other product innovation that can offer better performance, or process innovation or energy and environmental performance; or investments in the production of mature technology microchips, in the event of a structural lack of investments on the European market;

Amendment 353 #

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 the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance, potentially yielding exceptional social and environmental benefits, both of end products and during the manufacturing process;

Amendment 354 #

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, or capable of manufacturing materials or equipment used for semiconductor manufacturing, that is not substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as indium phosphide, silicon carbide and gallium nitride, silicon nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance;

Amendment 355 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

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, or capable of manufacturing materials or equipment exclusively used in semiconductor manufacturing, that is not substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide, indium phosphide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance;

Amendment 356 #

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 the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance, such as reducing the amount of energy and water used in the semiconductor manufacturing process;

Amendment 357 #

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, including in the production of mature technology microchips, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance;

Amendment 358 #

Proposal for a regulation
Article 2 – paragraph 1 – point 10 a (new)

(10 a) ‘semiconductor manufacturing’ means any of the stages of production and processing of semiconductor wafers, including substrate and equipment manufacturing, front-end and back-end, necessary to deliver a finished semiconductor product, including eventually design;

Amendment 359 #

Proposal for a regulation
Article 2 – paragraph 1 – point 11

(11) ‘next generation chips’ and ‘next generation semiconductor technologies’ means chips and semiconductor technologies that go beyond the state of the art in offering significant improvements in computing power ~~or energy efficiency as well as other significant energy and environmental gain~~, power management, security, or energy generation, storage, transmission and efficiency or improvements in recyclability as well as other significant energy and environmental gains or that require significantly and demonstrably less production inputs, such as energy, water, toxic chemicals and heavy metals;

Amendment 360 #

Proposal for a regulation
Article 2 – paragraph 1 – point 11

(11) ‘next generation chips’ and ‘next generation semiconductor technologies’ means chips and semiconductor technologies that go beyond the state of the art in offering significant improvements in electrical and optical performance, such as for instance computing power or energy efficiency as well as other significant energy and environmental gains;

Amendment 361 #

Adriana MALDONADO LÓPEZ, Lina GÁLVEZ MUÑOZ, Maria-Manuel LEITÃO-MARQUES, Tsvetelina PENKOVA, Nicolás GONZÁLEZ CASARES, Marcos ROS SEMPERE, Alicia HOMS GINEL

Proposal for a regulation
Article 2 – paragraph 1 – point 11

Amendment 362 #

Proposal for a regulation
Article 2 – paragraph 1 – point 11

Amendment 363 #

Proposal for a regulation
Article 2 – paragraph 1 – point 11

(11) ‘next generation chips’ and ‘next generation semiconductor technologies’ means chips and semiconductor technologies that go beyond the state of the art in the Union in offering significant improvements in computing power or energy efficiency as well as other significant energy and environmental gains;

Amendment 364 #

Proposal for a regulation
Article 2 – paragraph 1 – point 12

(12) ‘front-end’ means the entire processing of a semiconductor wafer including substrate manufacturing;

Amendment 365 #

Proposal for a regulation
Article 2 – paragraph 1 – point 13

(13) ‘back-end’ means the ~~packaging, assembly and test of each individual integrated circui~~bonding, assembly and packaging, as well as the functional and quality test of each individual component coming out from the manufacturing of the semiconductor product;

Amendment 366 #

(13) ‘back-end’ means the ~~packaging, assembly and test of each individual integrated circui~~bonding, assembly and packaging, as well as functional and quality test of each individual component coming out from the manufacturing of the semiconductor product;

Amendment 367 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 2 – paragraph 1 – point 15

(15) ‘key market actors’ means undertakings in the Union semiconductor ~~sector~~value chain, the reliable functioning of which is essential for the semiconductor supply chain;

Amendment 368 #

Proposal for a regulation
Article 2 – paragraph 1 – point 15 a (new)

(15 a) ‘key market representative organisations’ means trade associations representing key market actors, users of semiconductors or other undertakings of the semiconductor value chain with relevant activities in the areas of processor and semiconductor technologies, including distributors;

Amendment 369 #

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, all sectors producing equipment for the development and deployment of renewable energy generation, storage, distribution and transmission capacity, the defence sector and space and other activities that are relevant for public safety and security;

Amendment 370 #

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, the defence sector and other activities that are relevant foror subsector crucial for the maintenance of vital societal functions, namely public health and public safety and security;

Amendment 371 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

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, the defence sector and other activities that are relevant for publicmedical, energy, military and defence sectors which are crucial for maintaining vital societal functions and ensuring public health, safety and security;

Amendment 372 #

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, the defence, aerospace, automotive and telecommunications sectors and other activities that are relevant for public safety and security;

Amendment 373 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK

Proposal for a regulation
Article 2 – paragraph 1 – point 16

Amendment 374 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Article 2 – paragraph 1 – point 16

Amendment 375 #

Proposal for a regulation
Article 2 – paragraph 1 – point 16

Amendment 376 #

Proposal for a regulation
Article 2 – paragraph 1 – point 16

Amendment 377 #

Amendment 378 #

Proposal for a regulation
Article 2 – paragraph 1 – point 16

Amendment 379 #

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, ~~the defence~~ notably strategic sectors a~~nd other activities that are relevant for public safety and security~~s energy, housing, health, digital and transport;

Amendment 380 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Christophe GRUDLER

Proposal for a regulation
Article 2 – paragraph 1 – point 16 a (new)

(16 a) ‘crisis’ means a serious and unforeseen event which has a severe impact on the Union and substantially endangers or restricts the security, safety and the public health and alters the normal functioning of society and of the economy, and requires exceptional last- resort measures in order to supply the population with critical necessities;

Amendment 381 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

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, that are affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereofproducts and services within the semiconductor supply chain, that are in line with Directive of the European Parliament and of the Council on the resilience of critical entities;

Amendment 382 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Christophe GRUDLER

Proposal for a regulation
Article 2 – paragraph 1 – point 17

(17) ‘crisis-relevant product’ means semiconductors, intermediate products ~~and~~, critical raw materials and gases required to produce semiconductors or intermediate products, that are materially affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereof;

Amendment 383 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17

(17) ‘crisis-relevant product’ means semiconductors, their packaging as well as intermediate products and raw materials required to produce semiconductors or intermediate products, that ~~are affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereof~~can demonstrably remedy dysfunctionalities in one of the critical sectors in providing essential goods and services to Union citizens;

Amendment 384 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17

Amendment 385 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)

(17 a) ‘semiconductor crisis’ means a serious disruption to the supply of semiconductors for critical entities leading to a significant secular structural shortage of products or services which leads to an extraordinary situation which poses a serious threat to the functioning, health, or security and defence of the infrastructure, economy, institutions, Member States or Union citizens; attention must be paid to the difference between the cyclical and secular shortage;

Amendment 386 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)

(17 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 demonstrably prevents the normal functioning of critical sectors in providing essential goods and services to Union citizens;

Amendment 387 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)

(17 a) ‘crisis’ means a serious and extraordinary disruption to the supply of semiconductors, leading to a significant shortage of products or services, which poses a serious and immediate threat to the functioning, health, economy, and security and defence of the Member States and Union citizens;

Amendment 388 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)

(17 a) ‘semiconductor crisis’ means a serious disruption to the supply of semiconductors, leading to significant shortages of semiconductors, intermediate products, or raw or processed materials, at any link of the semiconductor supply chain, which prevents the functioning of critical sectors;

Amendment 389 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)

(17 a) ‘serious disruption’ means a situation that might occur in the case of natural disasters, interruptions in global logistics, shortages in raw material supply or geopolitical constraints;

Amendment 390 #

Proposal for a regulation
Article 2 – paragraph 1 – point 19 a (new)

(19 a) ‘demonstrably’ means ‘as demonstrated’ by independent experts in their relevant fields in a respective and publicly available report endorsed by the Commission under the advice of the European Semiconductor Board;

Amendment 391 #

Proposal for a regulation
Article 3 – paragraph 2

Amendment 392 #

Proposal for a regulation
Article 3 – paragraph 2 a (new)

2 a. Important Projects of Common European Interest (IPCEIs) in the area of semiconductors can be co-financed through the Chips Act.

Amendment 393 #

Proposal for a regulation
Article 3 – paragraph 2 a (new)

2 a. Important Projects of Common European Interest (IPCEIs) in the area of semiconductors can be co-financed through the Chips Act.

Amendment 394 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

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’s semiconductor value chain and 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 and packaging capabilities~~, as we~~. It shall aslso contribute to the achievement of the twin digital and green transition, improving the sustainability, reducing the environmental impact of next generation chips and strengthening the circular economy processes, and address security needs by enabling secure and resilient designs that defend against cybersecurity threats.

Amendment 395 #

Proposal for a regulation
Article 4 – paragraph 1

1. The general objective of the Initiative is to support large-scale technological capacity building and research and innovation throughout the Union’s semiconductor value chain to enable development and deployment of cutting- edge and next generation semiconductor and ~~quantum~~semiconductor technologies for quantum chips that will reinforce the Union advanced design, systems integration and chips production capabilities, as well as it shall also contribute to the achievement of the ~~twin~~ digital and green transitions, improve quality employment, strengthen the sustainability circular economy processes and address security needs and cybersecurity threats.

Amendment 396 #

Proposal for a regulation
Article 4 – paragraph 1

1. The general objective of the Initiative is to ~~support large-sca~~improve the long-term relative competitiveness of the Union's semiconductor industry by leveraging already existing capabilities and comparative advantages and investing in a cost-effective way and foster to the extent possible 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 twin digital and green transition.

Amendment 397 #

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 twin digital and green transition. This initiative also aims to strengthen regional industrial clusters of excellence, as well as their links between them, which are essential for the European semiconductor ecosystem.

Amendment 398 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

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 and to enable development and deployment of cutting- edge and next generation semiconductor and quantum technologies ~~that~~and the development and innovation of established technologies. Such measures will reinforce the Union advanced design, systems integration and chips production capabilities, as well as contribute to the achievement of the twin digital and green transition and a thriving economy.

Amendment 399 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

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 to leverage next generation semiconductor, photonic and quantum technologies that will reinforce the Union advanced design, systems integration and chips production capabilities, including manufacturing equipment, as well as contribute to the achievement of the twin digital and green transition.

Amendment 400 #

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 for quantum chips and photonic semiconductors that will reinforce the Union advanced design, systems integration and chips production capabilities, as well as contribute to the achievement of the twin digital and green transition.

Amendment 401 #

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 twin digital and green transition, and fulfill ambitious social objectives.

Amendment 402 #

Proposal for a regulation
Article 4 – paragraph 2 – point a – introductory part

(a) building up advanced ~~large-scale~~ and specialised design capacities for integrated semiconductor technologies. This operational objective shall be achieved through:

Amendment 403 #

Proposal for a regulation
Article 4 – paragraph 2 – point a – point 1

Amendment 404 #

Proposal for a regulation
Article 4 – paragraph 2 – point a – point 2

(2) upgrading and extending the design capacity ~~with ongo~~by fostering innovative developments, such as processor architectures based on the open- source Reduced Instruction Set Computer Architecture (RISC-V), reprogrammable chips based on Field Programmable Gate Arrays (FPGAs), new 3D and heterogeneous system architectures and architectures that are built by “security by design” and including a commercialisation roadmap to ensure that any elements subject to intellectual property rights are ready to meet production quality standards;

Amendment 405 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Mauri PEKKARINEN, Christophe GRUDLER

Proposal for a regulation
Article 4 – paragraph 2 – point a – point 2

(2) upgrading the design capacity with ongoing innovative developments, such as reprogrammable chips based on Field Programmable Gate Arrays (FPGAs), new 3D and heterogenous system architectures, processor architectures based on ~~the~~ open- source ~~Reduced~~ Instruction Set ~~Computer~~ Architectures (e.g. RISC-V) and architectures that are built by “security by design” and including a commercialisation roadmap to ensure that any elements subject to intellectual property rights are ready to meet production quality standards;

Amendment 406 #

Mauri PEKKARINEN, Bart GROOTHUIS

Proposal for a regulation
Article 4 – paragraph 2 – point a – point 3 a (new)

(3 a) enhancing international collaboration, especially with like-minded partners, which is crucial to bridge the current gap between research and design and manufacturing.

Amendment 407 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – introductory part

(b) enhancing existing and developing new advanced pilot lines ensuring broad geographical coverage. This operational objective shall be achieved through:

Amendment 408 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 1

(1) strengthening technological capabilities in next generation chips production technologies, by integrating research and innovation activities and preparing the development of future technology nodes, including leading-edge nodes below two nanometres, Fully Depleted Silicon on Insulator (FD-SOI) at 10 nanometres and below, new semiconductors materials (i.e. WBG materials, new gate dielectrics structure, thick metalization schemes, nobel metals integrations, new dielectric materials and passivation schemes) and 3D heterogeneous systems integration and advanced packaging, such as power models;

Amendment 409 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 1

(1) strengthening technological capabilities in next generation chips production technologies, by integrating research and innovation activities and preparing the development of future technology nodes, including leading-edge nodes below two nanometres, Fully Depleted Silicon on Insulator (FD-SOI) at 10 nanometres and below, new semiconductors materials and 3D heterogeneous systems integration and advanced packaging;

Amendment 410 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 1

Amendment 411 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2

(2) supporting large scale innovation through access to new or existing pilot lines for experimentation, test, and validation of new design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility, lower energy consumption, security, higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies; promoting international cooperation between different chips production technologies with third countries and the Union; encourage and maintain competitiveness by learning from different sectors of the chips industry;

Amendment 412 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2

(2) supporting ~~large scale~~ innovation through access to new or existing pilot lines for experimentation, test, and validation of new design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering ~~sustainable energy and~~renewable energy, manufacturing according to the highest environmental standards with an obligation to reduce the required production inputs, such as water, energy, toxic chemicals and heavy metals , electro mobility, lower energy consumption, energy efficiency, security, higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies;

Amendment 413 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2

(2) supporting large scale innovation through access to new or existing pilot lines for experimentation, test, ~~and~~ validation and semiconductors defectiveness management and control to improve the final devices reliability of new design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility, lower energy consumption, ~~securi~~cyber security, functional safety, higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies;

Amendment 414 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2

(2) supporting large scale innovation through access to new or existing pilot lines for experimentation, test, and validation of new design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility, lower energy consumption, security, higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies, guaranteeing open- source results or proportionate public ownership of intellectual property rights;

Amendment 415 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Mauri PEKKARINEN, Christophe GRUDLER

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2

(2) supporting large scale innovation through access to new or existing pilot lines for experimentation, test, and validation of new design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility, lower energy consumption, security, higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies and integration of electronics, photonics and microfluidics in heterogenous systems;

Amendment 416 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2

Amendment 417 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2

(2) supporting large scale innovation through access to new or existing pilot lines for experimentation, test, and validation of new and evolving existing design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility, lower energy consumption, security, higher levels of computing performance or integrating breakthrough technologies s. Such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies;

Amendment 418 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2 a (new)

(2 a) supporting large scale innovation through access to new or existing pilot lines for experimentation, test, and validation of new less energy and water demanding manufacturing processes;

Amendment 419 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 3

(3) providing support to Integrated Production Facilities and Open EU Foundries through ~~priority~~access to the new pilot lines, as well as providing access to ~~the~~ new pilot lines for all interested parties and guaranteeing access to start-ups and SMEs.

Amendment 420 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 3

(3) providing support to Integrated Production Facilities and public or non- for-profit Open EU Foundries through priority access to the new pilot lines, guaranteeing a proportionate public return on investment.

Amendment 421 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

Proposal for a regulation
Article 4 – paragraph 2 – point c

(c) building advanced technology and engineering capacities for accelerating the innovative development ~~of quantum chips.~~and manufacturing of quantum and photonic chips; this includes, but is not limited to, developing innovative design libraries, reducing the entry-barrier and accelerating the innovation cycles for the development and production, and providing capabilities and infrastructures;

Amendment 422 #

Proposal for a regulation
Article 4 – paragraph 2 – point c

(c) building advanced technology and engineering capacities for accelerating the innovative development ~~of quantum chip~~cutting-edge chips and next generation of quantum chips and photonic semiconductors.

Amendment 423 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 4 – paragraph 2 – point c

(c) building advanced technology and engineering capacities for accelerating the innovative development of quantum ~~chip~~technologies.

Amendment 424 #

Proposal for a regulation
Article 4 – paragraph 2 – point c

(c) building advanced technology and engineering capacities for accelerating ~~the~~ innovativon, such as the development of quantum chips.

Amendment 425 #

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 increasing programmes for attracting third-country talent through initiatives such as the 'EU Talent Pool' and the European Skills Agenda. The Union shall also seek to streamline market tests in the semiconductor ecosystem to better facilitate attracting and developing skills of the future to realise the objectives of this Regulation; with an emphasis on support for academic, reskilling programmes and qualification, up to PhD level in the area of STEM (Science, Technology, Engineering, and Mathematics), and computer science.

Amendment 426 #

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 challenges regarding the acquisition and retention of talent.

Amendment 427 #

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 with advanced skills up to the PhD level for strengthening the semiconductor sector, including via reskilling and up skilling of students and skilled workers.

Amendment 428 #

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 2

Amendment 429 #

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 2

(2) address the skills shortage and mismatch nurturing, attracting and mobilising new talent and supporting the emergence of a suitably skilled workforce for strengthening the semiconductor sector, including students orientation, via reskilling and upskilling of workers.

Amendment 430 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 2

(2) address the skills shortage and mismatch, nurturing, attracting and mobilising new talent and supporting the emergence of a suitably skilled workforce for strengthening the semiconductor sector, including ~~via~~students orientation, reskilling and upskilling of workers.

Amendment 431 #

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 2

(2) address the skills shortage and mismatch, 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.

Amendment 432 #

Proposal for a regulation
Article 4 – paragraph 2 – point e – introductory part

(e) undertaking activities, to be described collectively as a ‘Chips Fund’ activities to 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, maintaining proportionate ownership of intellectual property rights resulting from these actions, with a view to:

Amendment 433 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 4 – paragraph 2 – point e – point 1

(1) improving the leverage effect of the Union budget spending and achieving a higher multiplier effect in terms of attracting private-sector financing; in this regard clear guidance and access points shall be provided in order to assist start- ups and SMEs in accessing public and private funds.

Amendment 434 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 4 – paragraph 2 – point e – point 3

Amendment 435 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tomas TOBÉ, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS, Pernille WEISS

Proposal for a regulation
Article 4 – paragraph 2 – point e – point 3

Amendment 436 #

Proposal for a regulation
Article 5

Components of the Initiative 1. The Initiative shall have the following five components: (a) design capacities for integrated semiconductor technologies; (b) pilot lines for preparing innovative production, and testing and experimentation facilities; (c) advanced technology and engineering capacities for quantum chips; (d) a network of competence centres and skills development; (e) ‘Chips Fund’ activities for access to debt financing and equity to start-ups, scale-ups, SMEs and other companies in the semiconductor value chain.Article 5 deleted

Amendment 437 #

Proposal for a regulation
Article 5 – paragraph 1 – point b

(b) pilot lines for preparing innovative production, and testing and experimentation facilities; , as well as for materials and manufacturing equipment development and testing;

Amendment 438 #

Proposal for a regulation
Article 5 – paragraph 1 – point b

(b) pilot lines for preparing innovative sustainable production, and testing and experimentation facilities;

Amendment 439 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 5 – paragraph 1 – point c

Amendment 440 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Article 5 – paragraph 1 – point c

Amendment 441 #

Proposal for a regulation
Article 5 – paragraph 1 – point c

Amendment 442 #

Proposal for a regulation
Article 6 – paragraph 1

1. The Initiative shall enable synergies with Union programmes, as referred to in Annex III. The Commission shall ensure that the achievement of the objectives isof the other programmes are not hampered when leveraging the complementary character of the Initiative with Union programmes.

Amendment 443 #

Proposal for a regulation
Article 6 – paragraph 1 a (new)

1 a. The Commission shall ensure that the allocation of funding from Union programmes is geographically balanced, taking into account the spending capacity of each Member State.

Amendment 444 #

Proposal for a regulation
Article 7 – paragraph 1

1. For the purpose of pooling knowledge, expertise, resources and existing strengths in one pan-European ecosystem to accelerate the implement~~ing~~ation of eligible actions and other related tasks funded under the Initiative a European Chips Infrastructure Consortium (‘ECIC’) may be established under the conditions set out in this Article.

Amendment 445 #

Proposal for a regulation
Article 7 – paragraph 1

1. For the purpose of implementing eligible actions and other related tasks funded under the Initiative a Public European Chips Infrastructure Consortium (‘PECIC’) may be established under the conditions set out in this Article.

Amendment 446 #

Proposal for a regulation
Article 7 – paragraph 1

Amendment 447 #

Proposal for a regulation
Article 7 – paragraph 1

1. For the purpose of implementing eligible actions ~~and other related tasks~~ funded under the Initiative a European Chips Infrastructure Consortium (‘ECIC’) may be established under the conditions set out in this Article.

Amendment 448 #

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 of the Member States, and private legal entities;, with the participation of SMEs.

Amendment 449 #

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 of the Member States~~, and private legal entities~~;

Amendment 450 #

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, guarantees regarding a fair return on public investment, including in terms of IP and ownership of the results, governance, including decision making procedure and specific role and if applicable voting rights of Member States and the Commission, winding-up, reporting and strong liability. obligations, including stringent environmental and social conditionalities.

Amendment 451 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

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 and specific role and if applicable voting rights of Member States ~~and the Commission~~, winding-up, reporting and liability.

Amendment 452 #

Proposal for a regulation
Article 7 – paragraph 3 – point b a (new)

(b a) a document detailing how the actions taken by the ECIC will be technically contributing to the objectives laid down in Article 4;

Amendment 453 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 7 – paragraph 3 – point b b (new)

(b b) a detailed statement on why and how much public funding is necessary to achieve the actions outlined in the application;

Amendment 454 #

Proposal for a regulation
Article 7 – paragraph 4 – point d

(d) the appropriate financial and technical viability corresponding to the level of Union funds it will be called upon to manage and demonstrated, where appropriate, through guarantees issued preferably by a public authority;

Amendment 455 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 7 – paragraph 4 – point f

(f) the ~~appropriate~~ ability of the ECIC to ensure coverage of the needs of industry.

Amendment 456 #

Proposal for a regulation
Article 7 – paragraph 4 – point f a (new)

(f a) the clear and demonstrable contribution of the eligible action proposed to be implemented to the long term competitiveness of the Union semiconductor industry and the objectives laid down in Article 4;

Amendment 457 #

Proposal for a regulation
Article 7 – paragraph 4 – point f a (new)

(f a) the composition of the ECIC with regard to facilitating contributions and participation of SMEs.

Amendment 458 #

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 459 #

Proposal for a regulation
Article 7 – paragraph 4 – point f b (new)

(f b) cost-effectiveness of the eligible action proposed to be implemented;

Amendment 460 #

Proposal for a regulation
Article 7 – paragraph 4 – point f c (new)

(f c) contribution to achieving the twin transition, of the eligible action proposed to be implemented;

Amendment 461 #

Proposal for a regulation
Article 7 – paragraph 4 – point f d (new)

(f d) the environmental impact of the eligible action proposed to be implemented and a credible strategy and commitment to prevent any damages to the environment and biodiversity, including sufficient measures to ensure that any negative consequences will be treated according to the polluter pays principle;

Amendment 462 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 7 – paragraph 4 – point f e (new)

(f e) the participation of SMEs and start-ups;

Amendment 463 #

Proposal for a regulation
Article 7 – paragraph 8

8. The ECIC shall have substantial overall aut~~onom~~hority to lay down its membership, governance, funding, budget and the modalities by which the respective financial contributions from the members are called upon, voting rights and working methods. However, the organisation, composition and working methods of the ECIC, including any amendments to the Statutes, shall be in accordance with and contribute to the aims and objectives of this Regulation and the Chips for Europe Initiative and shall be notified to the Commission.

Amendment 464 #

Proposal for a regulation
Article 7 – paragraph 9

9. The ECIC shall produce an annual activity report, containing a technical description of its activities and financial statement as well as a social impact report including in terms of employment and training. The annual activity report shall be transmitted to the Commission and made publicly available. The Commission may provide recommendations regarding the matters covered in the annual activity report.

Amendment 465 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 7 – paragraph 9

9. The ECIC shall produce an annual activity report, containing a technical description of its activities and financial statement. The annual activity report shall be transmitted to the Commission and made publicly available. The Commission may provide recommendations regarding the matters covered in the annual activity report. The Commission shall make this report available to the European Parliament.

Amendment 466 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 8 – paragraph 1

Amendment 467 #

Proposal for a regulation
Article 8 – paragraph 1

Amendment 468 #

Proposal for a regulation
Article 8 – paragraph 2 – point b

(b) raising awareness and providing the necessary knowhow, expertise and skills to the stakeholders for helping them accelerate the development and integration of new semiconductor technologies, manufacturing equipment, design options and system concepts by using effectively the infrastructure;

Amendment 469 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Sara SKYTTEDAL, Tomas TOBÉ, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS, Pernille WEISS

Proposal for a regulation
Article 8 – paragraph 2 – point d

(d) facilitating the transfer of experience, expertise and knowhow between Member States ~~and regions~~, regions and international partners, encouraging exchanges of skills, knowledge and good practices and encouraging joint programmes;. Clear guidelines shall be established by the Commission in consultation with the European Semiconductor Board and industry representatives regarding the protection of valuable intellectual property, and the prevention of unauthorised access to confidential and sensitive business, economic and security related information, and trade secrets.

Amendment 470 #

Adriana MALDONADO LÓPEZ, Lina GÁLVEZ MUÑOZ, Maria-Manuel LEITÃO-MARQUES, Tsvetelina PENKOVA, Nicolás GONZÁLEZ CASARES, Marcos ROS SEMPERE, Eva KAILI, Alicia HOMS GINEL

Proposal for a regulation
Article 8 – paragraph 2 – point d

(d) facilitating the transfer of expertise and knowhow between Member States and regions encouraging exchanges of skills, knowledge and good practices and encouraging joint programmes; involving international partners and attracting international high skilled talent

Amendment 471 #

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 but not limited to increase the STEM studies awareness among young population, promoting the reskilling of current workers, and fostering placements and short stays of students and researchers in the industry.

Amendment 472 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

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 by promoting human potential and skills through STEM education from primary stages of education up to the PhD level, with a specific focus on women, which are under-represented in these sectors.

Amendment 473 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Article 8 – paragraph 2 – point e

(e) developing and managing specific training actions on semiconductor technologies and on their applications to support the development of the talent pool in the Union.

Amendment 474 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

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., as referred to in Article 4(d)2;

Amendment 475 #

Adriana MALDONADO LÓPEZ, Lina GÁLVEZ MUÑOZ, Maria-Manuel LEITÃO-MARQUES, Tsvetelina PENKOVA, Nicolás GONZÁLEZ CASARES, Marcos ROS SEMPERE, Eva KAILI, Alicia HOMS GINEL

Proposal for a regulation
Article 8 – paragraph 2 a (new)

2 a. Competence Centers shall perform the activities in close cooperation with industry, universities or research and technology organizations across the value chain, particularly with those facilities designated as “first -of-a-kind”.

Amendment 476 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 8 – paragraph 3

3. Member States shall designate candidate competence centres in accordance with its national procedures, administrative and institutional structures through an open and competitive process. The Commission shall, provide a clear set of guidelines as to the procedures for selecting competence centres. The Commission shall by means of implementing acts, set the procedure for establishing competence centres, including selection criteria, and further tasks and functions of the centres with respect to the implementation of the actions under the Initiative, the procedure for establishing the network as well to adopt decisions on the selection of entities forming the network. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 33(2).

Amendment 477 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 8 – paragraph 3

3. Member States shall designate candidate competence centres in accordance with its national procedures, administrative and institutional structures through an open and competitive process. The Commission shall, by means of implementing acts, set the procedure for establishing competence centres, including selection criteria, including priority and preference for public or non-for- profit entities and further tasks and functions of the centres with respect to the implementation of the actions under the Initiative, the procedure for establishing the network as well to adopt decisions on the selection of entities forming the network. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 33(2).

Amendment 478 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Christophe GRUDLER

Proposal for a regulation
Article 8 – paragraph 3

Amendment 479 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 8 – paragraph 4

4. The network shall have substantial overall autonomy to lay down its organisation, composition and working methods. However, the organisation, composition and working methods of the network shall represent the Union’s semiconductor valuechain, and be in accordance with and contribute to the aims and objectives of this Regulation and the Initiative.

Amendment 480 #

Proposal for a regulation
Article 8 – paragraph 4

4. The network shall have substantial overall aut~~onom~~hority to lay down its organisation, composition and working methods. However, the organisation, composition and working methods of the network shall be in accordance with and contribute to the aims and objectives of this Regulation and the Initiative.

Amendment 481 #

Proposal for a regulation
Article 9 – paragraph 1

1. The ~~components listed in points (a) to (d) of Article 5 under the Initiative may be entrusted to~~general objectives as well as the operational objectives laid down in Article 4(2), paragraphs a, b and c shall be stated in their entirety in the basic act establishing the Chips Joint Undertaking ~~referred to in~~, Council Regulation XX/XX amending Council Regulation (EU) 2021/2085 and implemented in the work programme of the Chips Joint Undertaking.

Amendment 482 #

Proposal for a regulation
Article 9 – paragraph 1

1. The components listed in Article 4 and points (a) to (d) of Article 5 under the Initiative may be entrusted to the Chips Joint Undertaking referred to in Council Regulation XX/XX amending Council Regulation (EU) 2021/2085 and implemented in the work programme of the Chips Joint Undertaking.

Amendment 483 #

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, or capable of manufacturing materials or equipment used in semiconductor manufacturing, in the Union that contribute to the security of supply for the internal market, either directly or by providing leverage.

Amendment 484 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 10 – paragraph 1

1. Integrated Production Facilities are first-of-a-kind semiconductor design, or capable of manufacturing materials or equipment exclusively used in semiconductor manufacturing 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.

Amendment 485 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 10 – paragraph 1

1. Integrated Production Facilities are new or retrofitted 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 or improve the relative competitiveness of the Union's semiconductor industry.

Amendment 486 #

Amendment 487 #

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~~and the resilience of the semiconductor ecosystem within the internal market.

Amendment 488 #

Proposal for a regulation
Article 10 – paragraph 2 – point a

~~(a) it qualifies as a first-of-a-kind facility;~~deleted

Amendment 489 #

Proposal for a regulation
Article 10 – paragraph 2 – point a

(a) it qualifies as a first-of-a-kind facility, guaranteeing a fair return on public investment;

Amendment 490 #

Proposal for a regulation
Article 10 – paragraph 2 – point a

(a) it qualifies as a first-of-a-kind facility or as a facility of common interest;

Amendment 491 #

Proposal for a regulation
Article 10 – paragraph 2 – point b

Amendment 492 #

Proposal for a regulation
Article 10 – paragraph 2 – point b

(b) its establishment ~~and operation have a clear~~, operation, corporate object, purpose and governance structures guarantee a clear long-term positive impact on the Union’s semiconductor value chain with regard to ensuring societal benefits, the security of supply ~~and increasing qualified workforce~~, supply chain diversification, increasing qualified workforce, quality jobs and positive environmental impact;

Amendment 493 #

Proposal for a regulation
Article 10 – paragraph 2 – point b

(b) its establishment and operation have a clear positive impact on the economy of the Union and the Union’s semiconductor value chain with regard to ensuring the security of supply and increasing qualified workforce, as well as it shall also contribute to the achieving the objectives of the digital and green transitions;

Amendment 494 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 10 – paragraph 2 – point b

(b) its establishment and operation have a clear positive impact on the efficacy of the Union’s semiconductor value chain with regard to ensuring the security ~~of supply and increasing qualifi~~, efficiency, adaptability, and stability of supply and increasing the pool of a qualified and skilled workforce;

Amendment 495 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 10 – paragraph 2 – point b

Amendment 496 #

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 ~~with regard to ensur~~, has been assessed withing the ~~security of supply and increasing qualified workforc~~State Aid balance test on the positive side;

Amendment 497 #

Proposal for a regulation
Article 10 – paragraph 2 – point b a (new)

(b a) its establishment and operation fulfil the investment spill-over principle, through a clear positive impact on levelling the Member States’ economic and scientific potentials in their participation in semiconductor value chains, particularly with regard to cohesion countries and regions facing permanent natural disadvantages, such as islands.

Amendment 498 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

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, fulfilling the investment spill-over principle, while creating a level playing field for the Member States’ economic and scientific potential, especially with regards to peripheral, remote and insular regions, which face additional challenges.

Amendment 499 #

Proposal for a regulation
Article 10 – paragraph 2 – point c

Amendment 500 #

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;

Amendment 501 #

Tsvetelina PENKOVA

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, and to restrictions to business operation and supply 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;

Amendment 502 #

Proposal for a regulation
Article 10 – paragraph 2 – point c

(c) it is an asset for a publicly-led industrial policy and 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;

Amendment 503 #

Proposal for a regulation
Article 10 – paragraph 2 – point d

~~(d) it commits to invest in the next generation of chips.~~deleted

Amendment 504 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 10 – paragraph 2 – point d

(d) it commits to invest in the next generation of chips, in projects that are highly ambitious, aimed at developing technologies and processes that go beyond current technology and will allow for major improvements in performance, safety, security, and environmental impact in line with the needs and aims of the Union's digital and green transformation; giving due consideration to ongoing and planned R&D&I activities and projects.

Amendment 505 #

Proposal for a regulation
Article 10 – paragraph 2 – point d

(d) it commits to invest in the next generation of chips. or any other chips in accordance with public policy priorities and the related training of workers;

Amendment 506 #

Proposal for a regulation
Article 10 – paragraph 2 – point d

(d) it commits to invest in the next generation of chips, such as recycled and recyclable chips, and quantum technologies.

Amendment 507 #

Proposal for a regulation
Article 10 – paragraph 2 – point d

(d) it commits to invest in the design, production, packaging, reuse or recycling of next generation of chips.

Amendment 508 #

Proposal for a regulation
Article 10 – paragraph 2 – point d

(d) it commits to invest in the next generation of chips across the Member States.

Amendment 509 #

Proposal for a regulation
Article 10 – paragraph 2 – point d a (new)

(d a) it commits with its energy supplier to expand the supplier production of renewable energy by the same amount of the total energy employed by the facility, including the energy used to treat the wastewater and produce Ultrapure Water.

Amendment 510 #

Proposal for a regulation
Article 10 – paragraph 3

Amendment 511 #

Proposal for a regulation
Article 10 – paragraph 3

3. For the purpose of investing in the design, production, packaging, reuse or recycling next generation of chips according to paragraph 2, point (d), the Integrated Production Facility shall have ~~priority~~ access to the pilot lines set up in accordance with Article 54, point (b). Any such ~~priority~~ access shall be without prejudice to effective access to the pilot lines by other interested undertakings, especially SMEs and start-ups.

Amendment 512 #

Proposal for a regulation
Article 10 – paragraph 3

3. For the purpose of investing in the next generation of chips and quantum technologies according to paragraph 2, point (d), the Integrated Production Facility shall have priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings.

Amendment 513 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 10 – paragraph 3

3. For the purpose of ~~invest~~fulfilling in the ~~next generation of chips according to~~objectives in paragraph 2, point (d), the Integrated Production Facility shall have priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings.

Amendment 514 #

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 priority access to the pilot lines set up in accordance with Article 5, point (b). ~~Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertaking~~Public funds used shall yield equivalent intellectual property rights and/or public ownership of results.

Amendment 515 #

Proposal for a regulation
Article 11 – paragraph 1

1. Open EU Foundries are new or retrofitted 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 or improve the relative competitiveness of the Union's semiconductor industry.

Amendment 516 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 11 – paragraph 1

1. Open EU Foundries are non-for- profit or public 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, as well as the diversification of supply chains.

Amendment 517 #

Proposal for a regulation
Article 11 – paragraph 1

Amendment 518 #

Proposal for a regulation
Article 11 – paragraph 2 – point a

~~(a) it qualifies as a first-of-a-kind facility;~~deleted

Amendment 519 #

Proposal for a regulation
Article 11 – paragraph 2 – point a

(a) it qualifies as a first-of-a-kind facility, guaranteeing a fair return on public investment;

Amendment 520 #

Proposal for a regulation
Article 11 – paragraph 2 – point a

(a) it qualifies as a first-of-a-kind facility or as a facility of common interest;

Amendment 521 #

Proposal for a regulation
Article 11 – paragraph 2 – point b

(b) its ~~establishment and operation have a clear~~ positive impact on the EU~~nion~~’s semiconductor value chain with regard to ensuring the security of supply and increasing qualified workforce, taking into account in particular the extent to which it offers front-end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand, has been assessed within the State Aid balance test on the positive side;

Amendment 522 #

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 with regard to ensuring the security of supply inter alia by increasing the strategic relevance of or demand for specific Union's semiconductor products and services within the global semiconductor value chain, and increasing qualified workforce, taking into account in particular the extent to which it offers design or front-end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand;

Amendment 523 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 11 – paragraph 2 – point b

(b) its establishment ~~and operation have a clear~~, operation, corporate object, purpose and governance structures guarantee a clear and long- term positive impact on the Union’s semiconductor value chain with regard to ensuring the security of supply ~~and~~, supply chain diversification, increasing qualified workforce, quality jobs and positive environmental impact; taking into account in particular the extent to which it offers front-end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand;

Amendment 524 #

Proposal for a regulation
Article 11 – paragraph 2 – point b

(b) its establishment and operation have a clear positive impact onand efficacy of the Union’s semiconductor value chain with regard to ensuring the security ~~of supply and increasing qualified workforce, taking into account in particular the extent to which~~ , efficiency, adaptability, and stability of~~fers front-end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand~~ supply and increasing the pool of a qualified and skilled workforce;

Amendment 525 #

Proposal for a regulation
Article 11 – paragraph 2 – point b

(b) its establishment and operation have a clear positive impact on the Union's economy of the and on the Union’s semiconductor value chain with regard to ensuring the security of supply, improving quality employment and increasing qualified workforce, taking into account in particular the extent to which it offers front-end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand;

Amendment 526 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

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 with regard to ensuring the security of supply and increasing qualified workforce, taking into account in particular the strengthen of its production capacity to meet the rising demand the extent to which it offers front- end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand;

Amendment 527 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

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 with regard to ensuring the security of supply ~~and~~, increasing the qualified workforce and contributing to the Union’s green transition, taking into account in particular the extent to which it offers front-end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand;

Amendment 528 #

Proposal for a regulation
Article 11 – paragraph 2 – point b a (new)

Amendment 529 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 11 – paragraph 2 – point b a (new)

Amendment 530 #

Proposal for a regulation
Article 11 – 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 to any conflicts of interest or compatibility with existing contractual obligations.

Amendment 531 #

Proposal for a regulation
Article 11 – paragraph 2 – point c

Amendment 532 #

Tsvetelina PENKOVA

Proposal for a regulation
Article 11 – paragraph 2 – point c

Amendment 533 #

Proposal for a regulation
Article 11 – paragraph 2 – point c

Amendment 534 #

Proposal for a regulation
Article 11 – paragraph 2 – point d

~~(d) it commits to invest in the next generation of chips.~~deleted

Amendment 535 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 11 – paragraph 2 – point d

(d) it commits to invest in the next generation of chips and in projects that are highly ambitious, aim to develop technologies and processes that go beyond current technology and will allow major improvements in performance, safety, security and environmental impact in line with the ongoing and planned R&D&I activities and projects.

Amendment 536 #

Proposal for a regulation
Article 11 – paragraph 2 – point d

(d) it commits to invest in the next generation of chips., or any other chips in accordance with public policy priorities and the related training of workers;

Amendment 537 #

Proposal for a regulation
Article 11 – paragraph 2 – point d

(d) it commits to invest in the next generation of chips, such as recycled and recyclable chips, and quantum technologies.

Amendment 538 #

Proposal for a regulation
Article 11 – paragraph 2 – point d

(d) it commits to invest in the design, production, packaging, reuse or recycling of next generation of chips.

Amendment 539 #

Proposal for a regulation
Article 11 – paragraph 2 – point d

(d) it commits to invest in the next generation of chips across the Member States.

Amendment 540 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 11 – paragraph 2 – point d a (new)

Amendment 541 #

Proposal for a regulation
Article 11 – paragraph 3

3. Where an Open EU Foundry offers production capacity to undertakings not related to the operator of the facility, it shall establish and maintain ~~adequate and~~ effective functional separation of the design and manufacturing processes in order to ensure the protection of information gained at each stage.

Amendment 542 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 11 – paragraph 3 a (new)

3 a. The operator of the Open EU Foundry should be able to flexibly adjust the share of capacity dedicated to serve unrelated undertakings, as opposed to that dedicated to its own semiconductor manufacturing purposes.

Amendment 543 #

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 priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings.deleted

Amendment 544 #

Proposal for a regulation
Article 11 – paragraph 4

4. For the purpose of investing in the design, production, packaging, reuse or recycling of next generation of chips according to paragraph 2, point (d), the Open EU Foundry shall have ~~priority~~ access to the pilot lines set up in accordance with Article 5, point (b). Any such ~~priority~~ access shall be without prejudice to effective access to the pilot lines by other interested undertakings, especially SMEs and start- ups.

Amendment 545 #

Proposal for a regulation
Article 11 – paragraph 4

4. For the purpose of investing in the next generation of chips and quantum technologies according to paragraph 2, point (d), the Open EU Foundry shall have priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings.

Amendment 546 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Cătălin Sorin IVAN

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 priority access to the pilot lines set up in accordance with Article 5, point (b). ~~Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertaking~~Public funds used shall yield equivalent intellectual property rights and/or public ownership of results.in regard to own programmes and activities.

Amendment 547 #

Proposal for a regulation
Article 11 – paragraph 4

4. For the purpose of ~~invest~~fulfilling in the ~~next generation of chips according to~~objectives of paragraph 2, point (d), the Open EU Foundry shall have priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings.

Amendment 548 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 11 – paragraph 4 a (new)

4 a. EU Foundries for small to medium batch sizes should be prioritised to allow SMEs or start-ups that design chips but do not produce them themselves to test and produce initially smaller volumes.

Amendment 549 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point b

(b) a business plan evaluating the financial and technical viability of the project, including information on any planned public support;. All data and documentation submitted as part of this application shall be carefully protected in accordance with the rules reflected in this regulation, and which reflects the sensitive business, economic, and security related information contained.

Amendment 550 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point b

(b) a business plan evaluating the financial viability of the project, including ~~inform~~a detailed calculation of any funding gap including a description of the methodology that is used for this calculation onand any information on planned public support;

Amendment 551 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point b

(b) a business plan evaluating the financial viability of the project, including information on any planned public support and a detailed breakdown of private funding;

Amendment 552 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point c

~~(c) proven experience of the applicant in installing and operating similar facilities;~~deleted

Amendment 553 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d

(d) provision of an appropriate supporting document proving the readiness of the Member State or Member States where the applicant intends to establish its facility to facilitate the set-up of such a facility. The Commission shall provide clear guidelines on the information required and its relevant format, in order to provide uniformity of applications and assessment.

Amendment 554 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d

Amendment 555 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d a (new)

(d a) a detailed environmental and climate impact assessment, especially focusing on water and energy use as well as the use, treatment and disposal of toxic chemicals and heavy metal;

Amendment 556 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d b (new)

(d b) its cost-effectiveness in achieving the stated targets;

Amendment 557 #

(d c) the commitment to invest in re- and upskilling of the existing labour force as well investing into the training and education of students from BSc to the PhD level.

Amendment 558 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 a (new)

The Commission shall process the application and adopt its decision in a timely manner and maximum within 3 months after receipt of the application notify the applicant thereof.

Amendment 559 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 2

The Commission shall request additional information where it considers the information provided by the applicant as incomplete and process the application and adopt its decision in a timely manner and notify the applicant thereof.

Amendment 560 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 2

The Commission shall process the application and adopt its decision within a ~~timely manner~~set time period and notify the applicant thereof.

Amendment 561 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 12 – paragraph 3

3. The Commission shall regularly monitor the activities of the Integrated Production Facilities and the Open EU Foundries. Where the Commission finds that a facility no longer fulfils the criteria set out in Articles 10(2) or in Article 11(2) respectively, it shall notify the findings to the European Semiconductor Board. ~~After consulting~~The Commission shall produce a change in circumstance assessment in consultation with the European Semiconductor Board ~~and~~; after hearing from the facility. Depending upon the outcome of the assessment and the hearing, the Commission may repeal the decision granting a facility the status of Integrated Production Facility or Open EU Foundry. The facility shall be notified at the earliest possible stage that such a decision is being considered.

Amendment 562 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 12 – paragraph 3

3. The Commission shall monitor the activities of the Integrated Production Facilities and the Open EU Foundries only to the extent necessary to evaluate if all the requirements for recognising a facility as Integrated Production facility or Open EU Foundry are fulfilled. Where the Commission finds that a facility no longer fulfils the criteria set out in Articles 10(2) or in Article 11(2) respectively, it shall notify the findings to the European Semiconductor Board. After consulting the European Semiconductor Board and after hearing the facility, the Commission may repeal the decision granting a facility the status of Integrated Production Facility or Open EU Foundry.

Amendment 563 #

Proposal for a regulation
Article 12 – paragraph 4

4. The Commission may, after consulting the European Semiconductor Board, repeal a decision recognising the status of an Integrated Production Facility or an Open EU Foundry if the recognition was based on an application containing incorrect information. that was intentional or showed bad faith, which fundamentally affects the premise of fulfilling the eligibility to access its status as an Integrated Production Facility or an Open EU Foundry, and in which the facility has failed to remedy the situation, or is unable to remedy the situation.

Amendment 564 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 12 – paragraph 5 a (new)

5 a. Stresses that it is essential for undertakings to have business certainty and continuity in order to operate. Therefore, undertakings shall have the right to appeal the decision to withdraw status within an agreed deadline set by the European Semiconductor Board and the Commission. In the event of a decision being appealed by an undertaking, the original assessment and any additional findings shall be examined. If the decision to withdrawal status is disputed within the European Semiconductor Board, the Board shall hold a vote in order to confirm the final decision and continue with the repeal of the existing Integrated Production Facility or Open EU Foundry status. In the event the decision is confirmed, a managed and phased end to such relationship shall be agreed and enacted.

Amendment 565 #

Public interest and public support 1. Integrated Production Facilities and Open EU Foundries shall be considered to contribute to the security of supply of semiconductors in the Union and therefore to be in the public interest. 2. In order to reach security of supply in the Union, Member States may, without prejudice to Articles 1~~07 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.~~3 deleted

Amendment 566 #

Proposal for a regulation
Article 13 – title

13 Public ~~interest and public~~ support

Amendment 567 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 13 – paragraph 1

1. To the extent their activities are driven by the public interest, Integrated Production Facilities and Open EU Foundries shall be considered to contribute to the security of supply of semiconductors in the Union and therefore to be in the public interest.;

Amendment 568 #

Proposal for a regulation
Article 13 – paragraph 1

1. Integrated Production Facilities and Open EU Foundries shall be considered to contribute to the security, efficiency, adaptability and stability of supply of semiconductors in the Union and therefore to be in the public interest.

Amendment 569 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Article 13 – paragraph 1

1. Integrated Production Facilities and Open EU Foundries ~~shall~~may be considered to contribute to the security of supply of semiconductors in the Union and therefore to ~~be in the public~~provide services of general interest.

Amendment 570 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Nicola DANTI, Christophe GRUDLER

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. The Commission shall commit to assess in a timely manner the intended state aid support schemes for first-of-a-kind semiconductor facilities pursuant to Article 107 (3) (c) TFEU.

Amendment 571 #

Proposal for a regulation
Article 13 – paragraph 2

Amendment 572 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 13 – paragraph 2

2. In order to reach security, efficiency, adaptability and stability 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.

Amendment 573 #

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 Ar~~to the extent that they are compaticble~~s 107 and 108 of the Treaty~~ with applicable state aid rules, apply support schemes and provide for administrative support to Integrated Production Facilities and Open EU Foundries in accordance with Article 14.

Amendment 574 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

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 or individual measures and provide for administrative support to Integrated Production Facilities and Open EU Foundries in accordance with Article 14.

Amendment 575 #

Proposal for a regulation
Article 13 – paragraph 2 a (new)

2 a. The Commission shall provide clear and transparent guidance on how the funding gap is assessed, including the information required to ensure uniform assessment for applications.

Amendment 576 #

Proposal for a regulation
Article 13 – paragraph 2 a (new)

2 a. Important Projects of Common European Interest (IPCEIs) in the area of semiconductors can be co-financed through the Chips Act.

Amendment 577 #

Proposal for a regulation
Article 13 – paragraph 2 a (new)

2 a. Important Projects of Common European Interest (IPCEIs) in the area of semiconductors can be co-financed through the Chips Act.

Amendment 578 #

Proposal for a regulation
Article 13 – paragraph 2 a (new)

2 a. All financial and regulatory support provisions referred in Article 10 to 14 shall cease to apply at latest on 31st December 2027.

Amendment 579 #

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 and timely manner. To that end, all national authorities concerned sh~~all ensure that the most rapid treatment legally possibl~~ould provide binding information on investment support to investors within six months of their application, to allow them to make adequate ris ~~given to these application~~k and investment assessments.

Amendment 580 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 14 – paragraph 1

Amendment 581 #

Proposal for a regulation
Article 14 – paragraph 2

2. Where such status exists in national law, Integrated Production Facilities and Open EU Foundries shall be allocated the status of the highest national significance possible ~~and be treated as such in permit granting processes, including those relating to environmental assessm~~. In order to comply to the goals of the twin green and digital transition, no derogation from environmental assessments and requirements shall be granted, while stringent requirements shall be put in place for the use of water and the reduction of biodiversity impact. In determining the location of such facilities, the spatial planning procedures shall apply to the outmost extents and ~~if national law so provides, in spatial planning~~the interaction with the regional infrastructure and its environmental and social consequences shall be factored in the decision to allow the construction.

Amendment 582 #

Proposal for a regulation
Article 14 – paragraph 2

Amendment 583 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

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 shall seek to establish recommendations to establish minimum restrictions by public authorities at a national level, in order to encourage faster permitting processes, create a uniform process and standard across Member States, and to reduce fragmentation across the Union.

Amendment 584 #

Proposal for a regulation
Article 14 – paragraph 3

Amendment 585 #

Proposal for a regulation
Article 14 – paragraph 3

Amendment 586 #

Tsvetelina PENKOVA

Proposal for a regulation
Article 14 – paragraph 3

3. The security of supply of semiconductors may be considered an imperative reason of overriding public interest within the meaning of Article 6(4) and Article 16(1)(c) of Directive 92/43/EEC and of overriding public interest within the meaning of Article 4(7) of Directive 2000/60. Therefore, the planning, construction and operation of Integrated Production Facilities and Open EU Foundries may be considered of overriding public interest, provided that the remaining other conditions set out in these provisions are fulfilled. In consideration of the public funding support received facilities under Integrated Production Facilities and Open EU Foundry, Member States shall ensure that unjustified restrictions to the business operations and supply chain of these facilities originating from the extraterritorial application of third countries' restrictions are eliminated or minimised.

Amendment 587 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 14 – paragraph 3

3. The security of supply ~~of semiconductors may be considered an imperative reason of overriding public interest within~~is of key public interest, therefore, full consideration shall be given with regard to the planning, construction and operation of Integrated Production Facilities and Open EU Foundries and the necessity to override the meaning of Article 6(4) and Article 16(1)(c) of Directive 92/43/EEC and of ~~overriding public interest within the meaning of~~ Article 4(7) of Directive 2000/60. Therefore, the planning, construction and operation of Integrated Production Facilities and Open EU Foundries may be considered of overriding public interest, provided that the remaining other conditions set out in these provisions are fulfilled. Nonetheless, this Regulation must fulfil the objectives of a sustainable digital and green transition.

Amendment 588 #

Proposal for a regulation
Article 14 – paragraph 4

4. For each Integrated Production Facility and Open EU Foundry, the Member State concerned shall nominate an authority responsible for facilitating and coordinating administrative applications related to planning, construction and operation. The authority shall appoint a coordinator who shall serve as the single point of contact for the Integrated Production Facility or Open EU Foundry. The authority may establish a working group where all authorities involved in the administrative applications are represented in order to draw up a permit granting schedule and to monitor and coordinate its implementation. If the setting up of an Integrated Production Facility or an Open EU Foundry requires decisions to be taken in two or more Member States, the respective authorities shall take all necessary steps for efficient and effective cooperation and coordination among themselves. In all cases the goals of the twin green and digital transition must be respected and the polluter pays principle must be effectively and efficiently implemented.

Amendment 589 #

Proposal for a regulation
Article 14 – paragraph 4 a (new)

4 a. For projects that are within the ecosystem of the Integrated Production Facilities and Open EU Foundries the provisions of Article 14(4) shall apply. The project shall notify the authority responsible for facilitating and coordinating administrative applications related to planning, construction and operation in written form, and shall include a reasonably detailed outline of the connection with the ecosystem

Amendment 590 #

Proposal for a regulation
Chapter IV – title

IV M~~onitor~~apping and Crisis ~~Response~~Prevention

Amendment 591 #

Proposal for a regulation
Chapter IV – Section 1 – title

1 M~~onitor~~apping

Amendment 592 #

Proposal for a regulation
Article 15

~~[...]~~deleted

Amendment 593 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

To ensure a secure, efficient, agile and stable Union-wide semiconductor ecosystem, supply chain monitoring must be a key objective of this Regulation and the role of the European Semiconductor Board. Member States shall carry out regular monitoring of the semiconductor value chain. In particular, they shall:

Amendment 594 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

Amendment 595 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

~~Member States~~The Commission, assisted by national competent authorities, shall carry out regular monitoring of the semiconductor value chain. In particular, it~~hey~~ shall:

Amendment 596 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

The Commission, in cooperation with Member States shall carry out regular monitoring of the semiconductor value chain. In particular, they shall:

Amendment 597 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a

(a) monitor early warning indicators identified pursuant to Article 16; such indicators shall be established in partnership with the European Semiconductor Board and industry stakeholders from across the entire semiconductor ecosystem, and they shall be updated in the event of significant market and geopolitical developments;

Amendment 598 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a

(a) ~~monitor~~encourage relevant stakeholders to monitor and inform them about early warning indicators identified pursuant to Article 16;

Amendment 599 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a

(a) identify and monitor early warning indicators identified pursuant to Article 16;

Amendment 600 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a a (new)

(a a) identify best practices for risk mitigation and crisis measures;

Amendment 601 #

(a b) assess the risks threatening the functioning of critical entities in relation to semiconductors;

Amendment 602 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a c (new)

(a c) compare and quantify the impacts of the available risk mitigation measures;

Amendment 603 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point b a (new)

(b a) identify best practices for risk mitigation and crisis measures;

Amendment 604 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2

Member States and industry representatives shall provide relevant findings to the European Semiconductor Board in the form of regular updates. Their regularity shall be reviewed during crisis situations.

Amendment 605 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2

Member States shall provide relevant findings to the European Semiconductor Board ~~in the form of regular updates~~.

Amendment 606 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2

~~Member States~~They shall provide relevant findings to the European Semiconductor Board in the form of regular updates.

Amendment 607 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 15 – paragraph 1 a (new)

1 a. The Commission shall establish a standing sub-group of the European Semiconductor Board composed of the Commission, national competent authorities and key market representative organisations. This standing sub-group shall meet at least twice a year, in order to assess the results of this monitoring. National competent authorities or key market representative organisations of third countries, and experts from academia and civil society, may be invited to the meetings of the standing sub-group.

Amendment 608 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 15 – paragraph 2

2. The Commission, in cooperation with Member States shall invite the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set-up for these updates.

Amendment 609 #

Proposal for a regulation
Article 15 – paragraph 2

2. Member States through the structures of the European Semiconductor Board shall invite the main users of semiconductors and other relevant stakeholders, including third country partners to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. ~~To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set- up for these updates.~~

Amendment 610 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 15 – paragraph 2

Amendment 611 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 15 – paragraph 2 a (new)

2 a. To facilitate the exchange of information the Commission shall establish a single point of contact for the information to be provided and collected. In order to ensure uniformity so that data can be collated and analysed in a meaningful and effective way, guidance shall be provided by the Commission on the type of information required and the format it is to be provided in. The Commission shall ensure there are sufficient expertise and resources allocated to this role. Guidance on the information required shall be amended and adapted depending on technological, geopolitical, and market developments.

Amendment 612 #

Proposal for a regulation
Article 15 – paragraph 3

3. National competent authorities designated pursuant to Article 26(1) may request through the structures of the European Semiconductor Board, information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. National competent authorities in such case will pay particular attention to SMEs to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27. This information shall be provided through the single point of contact established by the Commission.

Amendment 613 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 15 – paragraph 3

3. The Commission, in cooperation with National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. ~~National competent authorities in such case will pay particular attention to SMEs~~They will provide for standardised and secure means for the information collection and processing for the purpose of paragraph 1, with due regard to minimiszing the administrative burden ~~resulting from the request~~, in particular for SMEs, and will privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.

Amendment 614 #

Proposal for a regulation
Article 15 – paragraph 3

3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. National competent authorities in such case wishall pay particular attention to SMEs to minimise administrative burden resulting from the request and wishall privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27. Provision of such information shall be voluntary.

Amendment 615 #

Proposal for a regulation
Article 15 – paragraph 3

3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of key undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. National competent authorities in such case will pay particular attention to SMEs to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.

Amendment 616 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 15 – paragraph 3 a (new)

3 a. The European Semiconductor Board sub-group referred to in paragraph 1a shall adopt guidelines related to the type of information to be provided pursuant to paragraphs 2 and 3 with a view to ensuring that data is comparable, collected securely, and can be analysed in a meaningful and effective way. Guidance on the information required shall be updated when necessary in order to reflect technological, geopolitical, and market developments. The Commission shall ensure there are sufficient expertise and resources allocated to this sub-group. Particular attention shall be paid to minimising administrative requirements

Amendment 617 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tomas TOBÉ, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Pernille WEISS

Proposal for a regulation
Article 15 – paragraph 3 a (new)

3 a. The Commission shall produce an annual report in cooperation with the European Semiconductor Board in order to assess the regularity of information requests, the type and volume of information being requested, in particular from SMEs. It shall identify if necessary, the need to further streamline processes and provide further support in navigating information requests in the context of this Regulation.

Amendment 618 #

Proposal for a regulation
Article 15 – paragraph 4

4. Where a Member State becomes aware of a potential semiconductor crisis, a significant fluctuation in demand or has concrete and reliable information of any other risk factor or event materialising, it shall immediately alert the Commission (‘early warning’). A semiconductor crisis, a significant fluctuation in demand and other risk factors, shall be pre-defined alongside a clear set of benchmarks, in order to avoid unnecessary market intervention and to ensure the provisions of this Regulation are applied in a necessary and proportionate manner. The Commission shall undertake such task in cooperation with the European Semiconductor Board and representatives of the semiconductor industry.

Amendment 619 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 15 – paragraph 4

4. Where a Member State becomes aware of a potentially considerable semiconductor crisis, a significant fluctuation in demand or has concrete and reliable information of any other risk factor or event materialising, it shall ~~immediately~~ alert the Commission (‘early warning’).

Amendment 620 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 15 – paragraph 5 – point a – point 1 a (new)

(1 a) coordinating with stakeholders of the semiconductor value chain with a view of identifying, preparing and operationalising preventative measures to mitigate shortages and choke points that would prevent escalation towards a crisisstage;

Amendment 621 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 15 – paragraph 5 – point b

(b) enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking ~~cooperative~~ solutions to address supply chain disruptions or third country decisions, such as those related to extraterritorial export restrictions, that could cause such disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora or other diplomatic measures, while ensuring robust engagement with the stakeholder community.

Amendment 622 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Sara SKYTTEDAL, Tomas TOBÉ, Angelika NIEBLER, Othmar KARAS, Pernille WEISS

Proposal for a regulation
Article 15 – paragraph 5 – point b

(b) enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora. Representatives of third countries may also be invited to address and cooperate with the European Semiconductor Board or a sub-group.

Amendment 623 #

Proposal for a regulation
Article 15 – paragraph 7

Amendment 624 #

Proposal for a regulation
Article 15 a (new)

Article 15 a Strategic mapping As mandatory sharing of sensitive corporate data of Union's semiconductor companies might risk the competitiveness of the Union's semiconductor industry a strategic long term mapping of the Union's semiconductor value chain shall be conducted as a basis to demonstrate unequivocally, whether such mandatory sharing of sensitive corporate data is necessary or feasible to contribute to tackling a semiconductor crisis and shall be implemented as follows: 1. After a public consultation, the Commission shall work together with the European Semiconductor Board and relevant stakeholders to develop a framework and transparent methodology for a long-term strategic mapping of the semiconductor value chain. Such framework and methodology shall be approved by the members of the European Semiconductor Board. 2. The Commission, based on the approved framework, shall: a) build new and bundle existing capacities and expertise that are capable of conducting the long-term strategic mapping according to the framework and methodology approved by the European Semiconductor Board; b) lay out the exact data requirements to conduct the long-term strategic mapping according to the framework and methodology referred to in paragraph 1; c) propose strategies on how to incentivise stakeholders to provide voluntarily data that are deemed necessary to conduct the long-term strategic mapping according to the framework and methodology referred to in paragraph 1; d) propose legislation requiring stakeholders to provide data that are deemed necessary to conduct the long- term strategic mapping according to the framework and methodology referred to in paragraph 1 if this data can not be received by stakeholders on a voluntary basis. Such legislation shall be proposed based on an impact assessment that also analyses concrete proposals on how to store, protect and analyse the respective data; e) conduct the long-term strategic mapping of the semiconductor value chain and produce an annual report that is made publicly available; f) based on the long-term strategic mapping of the semiconductor value chain identify early warning indicators for risks that may disrupt, compromise or negatively affect the supply of semiconductors and conduct a risk assessment. 3. The first annual report shall constitute the basis for an impact assessment of the following emergency measures: a) priority rated orders; b) common purchasing; c) export restrictions; d) reserve stocks;

Amendment 625 #

Proposal for a regulation
Article 16

Union risk assessment and early warning 1. The Commission shall, after consulting the European Semiconductor Board, assess risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment). In the Union risk assessment, the Commission shall identify early warning indicators. 2. The Commission shall review the Union risk assessment including the early warning indicators as necessary. 3. When monitoring the semiconductor value chain pursuant to Article 15, Member States shall monitor the early warning indicators identified by the Commission.Article 16 deleted indicators

Amendment 626 #

Proposal for a regulation
Article 16 – paragraph 1

1. The Commission shall~~, after consulting the European Semiconductor Board,~~ assess risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment). In the Union risk assessment, the Commission shall identify early warning indicators. In order to undertake this task, the Commission shall consult a specific task force composed of the European Semiconductor Board and relevant stakeholder organisations, including industry associations and representatives of the main user categories. The Commission may establish this task force as an open-ended working group within the European Semiconductor Board.

Amendment 627 #

Proposal for a regulation
Article 16 – paragraph 1

Amendment 628 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 16 – paragraph 1

1. The Commission shall, after consulting the European Semiconductor Board, assess risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment). In the Union risk assessment, the Commission shall identify early warning indicators and it shall publish those indicators and keep them publicly available until [6 months after the date of entry into force of this Regulation].

Amendment 629 #

Proposal for a regulation
Article 16 – paragraph 1

1. The Commission shall, after consulting the European Semiconductor Board, and where necessary third country representatives, assess risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment). In the Union risk assessment, the Commission shall identify early warning indicators.

Amendment 630 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Christophe GRUDLER

Proposal for a regulation
Article 16 – paragraph 1

1. The Commission shall~~, after consulting~~ develop a list of early warning indicators in cooperation with the European Semiconductor Board~~, assess~~ with a view to identify risks that may disrupt, compromise or negatively affect the supply of semiconductors ~~(Union risk assessment). In the Union risk assessment, the Commission shall identify early warning indicators~~.

Amendment 631 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Christophe GRUDLER

Proposal for a regulation
Article 16 – paragraph 2

2. The Commission shall review the ~~Union risk assessment including the~~ early warning indicators as necessary.

Amendment 632 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 16 – paragraph 2 a (new)

2 a. By [18 months after the date of entry into force of this Regulation], the Commission shall assess whether, in view of regulatory and market development, the risk assessment and early warning indicators are effective, proportionate, evidence-based and sufficient to identify the risks. The early warning indicators shall also assess the optimal level of resilience considering the market effectiveness, the resilience price premium and the risk premium. Where appropriate, the Commission shall amend or terminate this Article for that purpose, accompanied by impact assessment including quantified cost-benefit analysis and an external study.

Amendment 633 #

Proposal for a regulation
Article 16 – paragraph 3

3. When monitoring the semiconductor value chain pursuant to Article 15, Member States, and where necessary and proportionate, industry representatives that are members of the Semiconductor Board, shall monitor the early warning indicators identified by the Commission.

Amendment 634 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Christophe GRUDLER

Proposal for a regulation
Article 16 – paragraph 3

3. When monitoring the semiconductor value chain pursuant to Article 15, Member States shall monitor the early warning indicators identified by the Commission and the European Semiconductor Board.

Amendment 635 #

Proposal for a regulation
Article 16 – paragraph 3

3. When ~~monitoring~~assessing information about the semiconductor value chain pursuant to Article 15, Member States shall monitor the early warning indicators identified by the Commission.

Amendment 636 #

Proposal for a regulation
Article 16 – paragraph 3

3. When monitoring the semiconductor value chain pursuant to Article 15, Member States shall identify and monitor the early warning indicators identified by the Commission.

Amendment 637 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 17

Amendment 638 #

Proposal for a regulation
Article 17 – paragraph 1 – introductory part

1. Member States in consultation where necessary and proportionate with industry representatives shall identify key market actors along the semiconductor supply chains in their national territory in accordance with a pre-defined criteria agreed by the European Semiconductor Board and the Commission, taking into account the following elements:

Amendment 639 #

Proposal for a regulation
Article 17 – paragraph 1 – introductory part

1. ~~Member States~~The Commission, assisted by national competent authorities, shall identify key market actors along the semiconductor supply chains in the~~ir national territory~~ internal market, taking into account the following elements:

Amendment 640 #

Proposal for a regulation
Article 17 – paragraph 1 – introductory part

1. Member States, in cooperation with the Commission, shall identify key market actors along the semiconductor supply chains in their national territory, taking into account the following elements:

Amendment 641 #

Amendment 642 #

Proposal for a regulation
Article 17 – paragraph 1 – point d

(d) the impact a disruption of supply of the service or good provided by the market actor may have on the Union’s semiconductor supply chain ~~and dependent markets~~.

Amendment 643 #

Proposal for a regulation
Article 17 – paragraph 1 – point d a (new)

(d a) the outcome of the mapping exercise pursuant to Article 17b.

Amendment 644 #

Proposal for a regulation
Article 17 – paragraph 1 a (new)

1 a. The Commission, assisted by national competent authorities, shall identify key market representative organisations of the global semiconductor value chain.

Amendment 645 #

Proposal for a regulation
Article 17 a (new)

Article 17 a Governance and risk mitigation obligations 1. Key market actors shall diligently assess the security of their supply of semiconductor raw materials, intermediary products, and equipment and design, and implement risk mitigation measures with the aim of reducing the risks of shortages, such as diversification of suppliers or stockpiling of crisis- relevant products with higher risk of future shortages. 2. Critical sector entities shall diligently assess the security of their supply of semiconductor products and implement risk mitigation measures with the aim of reducing the risks of shortages. 3. National competent authorities shall ensure that the management bodies of key market actors and critical sector entities approve the risk mitigation measures taken pursuant to paragraphs 1 and 2, supervise its implementation and be accountable for the non-compliance with the obligations under this Article. 4. Key market actors shall disclose potential disruptions of the supply chain of their products to the users of semiconductors using such particular products. All participants to these exchanges shall respect the confidentiality of commercially confidential information and business secrets of a natural or legal person, including intellectual property rights. 5. The Commission shall adopt delegated acts in accordance with Article 32 to provide guidelines setting out the details of the procedure to be followed for the application of this Article.

Amendment 646 #

Proposal for a regulation
Article 17 b (new)

Article 17 b Mapping of the semiconductor value chain 1. The Commission, assisted by national competent authorities, shall carry out a periodic mapping exercise of the European and global semiconductor value chains with the aim 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. In particular, it shall: (a) assess risks that may disrupt, compromise or negatively affect the production and supply of semiconductors, including the potential direct and indirect impacts of foreign governments’ geopolitical measures; (b) ensure a good level of understanding of the market, the barriers to entry, the technology characteristics, the dependencies on foreign technology and providers, and chokepoints of the value chain; (c) focus on all levels of the value chain, namely inputs, production steps, and products of the semiconductor industry; (d) identify key products and critical infrastructures in the internal market depending on semiconductors; (e) assess global stocks of critical raw materials and risks of shortages within the sector; (f) evaluate the environmental impact of the semiconductor industry and drawing recommendations and best practices for sustainability. 2. The Commission shall create a dedicated structure, adequately staffed, for the conduction of the exercise described in paragraph 1. 3. National competent authorities designated pursuant to Article 26(1) shall map undertakings operating along the semiconductor supply chain in their national territory, including non- confidential information on the services or goods, and contact information. They shall notify this list and any subsequent update to the Commission and the European Semiconductor Board. The Commission may issue guidance, after consulting the European Semiconductor Board, to further specify the information to be gathered and define the technical specifications and formats

Amendment 647 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 18 – paragraph 1 – introductory part

1. A semiconductor crisis shall be considered to occur when there ~~are~~is a serious and extraordinary disruption~~s in~~ to the supply of semiconductors, leading to a significant shortage~~s, which:~~ of products or services, which poses a serious and immediate threat to the functioning, health, economy, and security and defence of the Member States and the Union citizens;

Amendment 648 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Christophe GRUDLER

Proposal for a regulation
Article 18 – paragraph 1 – introductory part

1. A semiconductor crisis shall be considered to occur as defined in Article 2(1)(16a) when there are serious disruptions in the supply of semiconductors leading to significant shortages, which:

Amendment 649 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 18 – paragraph 1 – point a

~~(a) entail significant delays or significant negative effects on one or more important economic sectors in the Union, or~~deleted

Amendment 650 #

Proposal for a regulation
Article 18 – paragraph 1 – point a

~~(a) entail significant delays or significant negative effects on one or more important economic sectors in the Union, or~~deleted

Amendment 651 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK

Proposal for a regulation
Article 18 – paragraph 1 – point a

(a) entail significant delays or significant negative effects on one or more ~~important economic~~critical sectors in the Union~~, or~~

Amendment 652 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 18 – paragraph 1 – point b

~~(b) prevent the supply, repair and maintenance of essential products used by critical sectors.~~deleted

Amendment 653 #

Proposal for a regulation
Article 18 – paragraph 2

2. Where an assessment of the Commission provides concrete, serious, and reliable evidence of a semiconductor crisis, the Commission may activate the crisis stage by means of implementing acts in accordance with Article 33(2). The duration of the activation shall be specified in the implementing act. Where, in view of the scope and gravity of the semiconductor crisis, duly justified imperative grounds of urgency so require, the procedure provided for in Article 33(3) shall apply to implementing acts adopted pursuant to this Article.

Amendment 654 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER

Proposal for a regulation
Article 18 – paragraph 2

2. Where an assessment of the Commission provides concrete, serious, and reliable evidence of a semiconductor crisis, the Commission may, after consulting the European semiconductor Board, activate the crisis stage by means of implementing acts in accordance with Article 33(2). The duration of the activation shall be specified in the implementing act. The Commission shall report on a regular basis to the European Semiconductor Board. Where, in view of the scope and gravity of the semiconductor crisis, duly justified imperative grounds of urgency so require, the procedure provided for in Article 33(3) shall apply to implementing acts adopted pursuant to this Article.

Amendment 655 #

Proposal for a regulation
Article 18 – paragraph 2

2. WOnly after having consulted the European Semiconductor Board and having fully taken into consideration its opinion and where an assessment of the Commission provides concrete, serious, and reliable evidence of a semiconductor crisis, the Commission may activate the crisis stage by means of ~~implementing~~delegated acts in accordance with Article 33(2). The duration of the activation shall be specified in the implementing act. Where, in view of the scope and gravity of the semiconductor crisis, duly justified imperative grounds of urgency so require, the procedure provided for in Article 33(3) shall apply to implementing acts adopted pursuant to this Articledelegated act.

Amendment 656 #

Proposal for a regulation
Article 18 – paragraph 2

2. Where an assessment of the Commission provides concrete, serious, and reliable evidence of a semiconductor crisis, the Commission may activate the crisis stage by means of implementing acts in accordance with Article 33(2). The duration of the activation, which in any case shall not exceed 6 months, shall be specified in the implementing act. Where, in view of the scope and gravity of the semiconductor crisis, duly justified imperative grounds of urgency so require, the procedure provided for in Article 33(3) shall apply to implementing acts adopted pursuant to this Article.

Amendment 657 #

Proposal for a regulation
Article 18 – paragraph 3

3. Before the expiry of the duration for which the crisis stage was activated, the Commission shall, after consulting the European Semiconductor Board, assess whether the activation of the crisis stage should be prolonged. Where the assessment, including quantified evidence and cost-benefit analysis, concludes that a prolongation is appropriate, the Commission may prolong the activation by means of implementing acts. ~~The durati~~Special attention shall be paid to a possible distortion of market competition and avoiding unneccessary isolation of the Union's market and businesses. The assessment shall be made publicly available, taking into account the professional or other relevant secrecy. The duration and reason of the prolongation shall be specified in the implementing acts adopted in accordance with Article 33(2). The Commission may repeatedly decide to prolong the activation of the crisis stage where this is appropriate.

Amendment 658 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 18 – paragraph 3

Amendment 659 #

Proposal for a regulation
Article 18 – paragraph 4

Amendment 660 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 18 – paragraph 4

4. During the crisis stage, the Commission shall, upon request from a Member State or on its own initiative, convene extraordinary meetings of the European Semiconductor Board as necessary. Member States and industry representatives shall work closely with the Commission and coordinate any national measures taken with regard to the semiconductor supply chain within the European Semiconductor Board.

Amendment 661 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 18 – paragraph 4 a (new)

Amendment 662 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 18 – paragraph 5

5. Upon expiry of the duration for which the crisis stage is activated, the measures taken in accordance with Articles 20, 21 and 22 shall cease to apply. The Commission in consultation with the European Semiconductor Board shall review the Union risk assessment pursuant to Article 16(2) no later than six months after the expiry of the duration of the crisis stage, the conclusions of that review shall be made available to the European Parliament.

Amendment 663 #

Amendment 664 #

Proposal for a regulation
Article 18 – paragraph 5

5. Upon expiry of the duration for which the crisis stage is activated, the measures taken in accordance with Articles 20, 21 and 22 shall cease to apply. The Commission shall review the Union risk assessment pursuant to Article 165a(2f) no later than six months after the expiry of the duration of the crisis stage.

Amendment 665 #

Lina GÁLVEZ MUÑOZ, Adriana MALDONADO LÓPEZ, Carlos ZORRINHO, Marcos ROS SEMPERE, Nicolás GONZÁLEZ CASARES

Proposal for a regulation
Article 19 – paragraph 1

Amendment 666 #

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, after consulting the European Semiconductor Board, 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.

Amendment 667 #

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~~may 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.

Amendment 668 #

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 addit~~according to the impact assessment pursuant to Article 15a(3) and after having consulted the Semiconductor Board, in order to address the semiconductor crisis in the Union, the Commission may take the measures provided for in Article 21 or Article 22, or both, under the conditions laid down therein.

Amendment 669 #

Proposal for a regulation
Article 19 – paragraph 2

2. The Commission ~~may, after~~shall consult~~ing~~ the European Semiconductor Board, on the proportionality of the actions proposed and may limit the measures provided for in Articles 21 and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis.

Amendment 670 #

Proposal for a regulation
Article 19 – paragraph 2

2. The Commission ~~may, after consulting the European Semiconductor Board~~shall, limit the measures provided for in Articles 21 and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis.

Amendment 671 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 19 – paragraph 2

Amendment 672 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 19 – paragraph 3 – introductory part

3. Where the crisis stage is activated and where appropriate in order to address the semiconductor crisis in the Union, the European Semiconductor Board ~~may~~shall assess and advise on further appropriate and effective emergency measures, for example:

Amendment 673 #

Proposal for a regulation
Article 19 – paragraph 3 – point a

(a) assess the impact and consequences to the Union's semiconductor industry of the possible imposition of protective measures, including in particular whether the market situation corresponds to a significant shortage of an essential product pursuant to Regulation 2015/479 ~~and provide an opinion to the Commission;~~ , and a crisis, as defined in this Regulation; and provide an opinion to the Commission after detailed consultation with industry stakeholders and international partners. The activation of a crisis stage and the protective measures taken, shall not place the Union's semiconductor industry at risk of increased vulnerability as a consequence;

Amendment 674 #

Proposal for a regulation
Article 19 – paragraph 3 – point a

(a) assess the impact of the possible imposition of protective measures, including in particular whether the market situation corresponds to a significant shortage of an essential product pursuant to Regulation 2015/479 and provide an opinion to the Commission, taking into account the findings of the impact assessment pursuant to Article 15a(3);

Amendment 675 #

Proposal for a regulation
Article 19 – paragraph 3 – point a

Amendment 676 #

Proposal for a regulation
Article 19 – paragraph 3 – point b

(b) assess and advise on further appropriate and effective emergency measures, taking into account the findings of the impact assessment pursuant to Article 15a(3).

Amendment 677 #

Proposal for a regulation
Article 19 – paragraph 4

Amendment 678 #

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, taking fully into account the findings of the impact assessment pursuant to Article 15a(3); and must be in the best long term interest of the Union. The use of these measures shall avoid placing disproportionate administrative burden ~~on SME~~, especially on SMEs and start-ups.

Amendment 679 #

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~~. Measures must be in the best interest of the Union and shall not disproportionally favour or disfavour any one or group of Member States. The use of these measures shall avoid placing disproportionate administrative burden on SMEs.

Amendment 680 #

Proposal for a regulation
Article 19 – paragraph 5

5. The Commission shall regularly inform the European Parliament and the Council of any measures taken in accordance with paragraph 1 ~~and explain~~, explain and publish the reasons of its decision while taking into account the professional or other relevant secrecy requirements.

Amendment 681 #

Proposal for a regulation
Article 19 – paragraph 6

6. The Commission may, after consulting the European Semiconductor Board, issue guidance on the implementation and the use of the emergency measures, taking fully into account the findings of the impact assessment pursuant to Article 15a(3).

Amendment 682 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

6. The Commission ~~may~~shall, after consulting the European Semiconductor Board and industry stakeholders, issue guidance on the implementation and the use of the emergency measures.

Amendment 683 #

Proposal for a regulation
Article 20

1. The Commission shall, after consulting the European Semiconductor Board, request representative organisations of undertakings or, if necessary, individual undertakings operating along the semiconductor supply chain to inform the Commission about their production capabilities, production capacities, current primary disruptions and provide other existing data necessary to assess the nature of the semiconductor crisis or to identify and assess potential mitigation or emergency measures at national or Union level. 2. The request for information shall state its legal basis, be proportionate in terms of the granularity and volume of the data and frequency of access to the data requested, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, and set out the time limit within which the information is to be provided. It shall also indicate the penalties provided for in Article 28. 3. The owners of the undertakings or their representatives and, in the case of legal persons, companies or firms, or associations having no legal personality, the persons authorised to represent them by law or by their constitution shall supply the information requested on behalf of the undertaking or the association of undertakings concerned. Lawyers duly authorised to act may supply the information on behalf of their clients. The latter shall remain fully responsible if the information supplied is incomplete, incorrect or misleading. 4. Should an undertaking supply incorrect, incomplete or misleading information in response to a request made pursuant to this Article, or not supply the information within the prescribed time limit, it shall be subject to fines set in accordance with Article 28. 5. Should an undertaking established in the Union be subject to a request for information related to its semiconductor activities from a third country, it shall inform the Commission in such a manner as to enable the Commission to request similar information. The Commission shall inform the European Semiconductor Board of the existence of such request from a third country.Article 20 deleted Information gathering

Amendment 684 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 20 – paragraph 1

Amendment 685 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 20 – paragraph 1

1. The Commission shall, after consulting the European Semiconductor Board, request representative organisations of key undertakings or, if necessary, individual undertakings operating along the semiconductor supply chain to inform the Commission about their production capabilities, production capacities, current primary disruptions and provide other existing data necessary to assess the nature of the semiconductor crisis or to identify and assess potential mitigation or emergency measures at national or Union level. The Commission shall limit the collection of sensitive and business confidential data to what is directly relevant and necessary for the assessment of the nature of the semiconductor crisis or the potential mitigation or emergency measures at national or Union level.

Amendment 686 #

Proposal for a regulation
Article 20 – paragraph 1

Amendment 687 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Article 20 – paragraph 1

Amendment 688 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 20 – paragraph 1

1. The Commission ~~shall~~may, after consulting the European Semiconductor Board, request representative organisations of undertakings or, if necessary, individual undertakings operating along the semiconductor supply chain to inform the Commission about their production capabilities, production capacities, current primary disruptions and provide other existing data necessary to assess the nature of the semiconductor crisis or to identify and assess potential mitigation or emergency measures at national or Union level.

Amendment 689 #

Proposal for a regulation
Article 20 – paragraph 1 a (new)

1 a. In the event of a crisis situation, and the information already provided by organisations and undertakings proves insufficient to fully assess the measures needed to be taken to mitigate the risks, then on a case-by-case basis and after consultation with the European Semiconductor Board, further information may be requested. Such information shall be treated in accordance with the basic principles and minimum standards of security for protecting information and data of this nature.

Amendment 690 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 20 – paragraph 1 b (new)

1 b. In the event of a data breach or unauthorised disclosure of information and data collected, this shall result in a full investigation by the Commission or competent authority, and if necessary a revision of the guidelines applied to the treatment, storage and handling of the data under the requirements of this Regulation. The Commission or Member States shall ensure the appropriate action is taken. The entity or undertaking has the right to decline sharing further information until an investigation has been carried out, and a remedy has been sought.

Amendment 691 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 20 – paragraph 1 c (new)

1 c. There shall be a single point of contact established by the Commission for such information to be provided to reduce administrative burden in reporting measures, and to reduce the risk of data breaches and the unauthorised disclosure of business, security, and economically sensitive information.

Amendment 692 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 20 – paragraph 2

2. The request for information shall state its legal basis, be proportionate in terms of the granularity and volume of the data and frequency of access to the data requested, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, and set out the time limit within which the information is to be provided. It shall also indicate the penalties provided for in Article 28. If the request for information is addressed to SMEs, its relevance for the wider Union supply chain shall be taken into account.

Amendment 693 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 20 – paragraph 2

2. The request for information shall state its legal basis, be proportionate in terms of the granularity and volume of the data and frequency of access to the data requested, have regard for the legitimate aims of the undertaking ~~and~~, take into account the protection of trade secrets and business sensitive information, the cost and effort required to make the data available, and set out the time limit within which the information is to be provided. It shall also indicate the penalties provided for in Article 28.

Amendment 694 #

Proposal for a regulation
Article 20 – paragraph 2

2. The request for information shall state its legal basis, be proportionate and necessary in terms of the granularity and volume of the data and frequency of access to the data requested, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, and set out the time limit within which the information is to be provided. It shall also indicate the penalties provided for in Article 28.

Amendment 695 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 20 – paragraph 4

4. Should an undertaking supply incorrect, incomplete or misleading information in response to a request made pursuant to this Article as a consequence of bad faith or recklessness, or not supply the information within the prescribed time limit, it shall be subject to fines set in accordance with Article 28.

Amendment 696 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Article 20 – paragraph 5

Amendment 697 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 20 – paragraph 5

5. Should an undertaking established in the Union be subject to a request for information related to its semiconductor activities from a third country, it shall inform the Commission in such a manner as to enable the Commission to request similar information if necessary and relevant to its tasks. The Commission shall inform the European Semiconductor Board of the existence of such request from a third country.

Amendment 698 #

Proposal for a regulation
Article 20 – paragraph 5 a (new)

5 a. Any mandatory request for information from companies in crisis situations must be limited to an absolute minimum. Business secrets must be protected by all means and at all costs. Administrative burden for companies must be limited to the absolute minimum.

Amendment 699 #

Proposal for a regulation
Article 21

~~[...]~~deleted

Amendment 700 #

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 after having consulted the European Semiconductor Board may oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of crisis-relevant products (‘priority rated order’) only if this can be justified based on the findings of the impact assessment pursuant to to Article 15a(3). The obligation shall take precedence over any performance obligation under private or public law.

Amendment 701 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 21 – paragraph 1

1. ~~Where necessary and proportionate~~Only with particular regard to proportionality and in exceptional crises and emergencies of the Union as referred to in Article 18 and in order to ensure the ~~opera~~functioning of all or certain critical sectors, the Commission may, at last resort, oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of crisis-relevant products (‘priority rated order’). The obligation shall take precedence over any performance obligation under private or public law.

Amendment 702 #

Proposal for a regulation
Article 21 – paragraph 1

1. Where necessary and proportionate to ensure the operation of all or certain critical sectors, and in line with the Directive of the European Parliament and of the Council on the resilience of critical entities, the Commission may oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of crisis-relevant products (‘priority rated order’). The obligation shall take precedence over ~~any~~other performance obligations under private or public law.

Amendment 703 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Article 21 – paragraph 1

1. WIn extraordinary circumstances, where necessary and proportionate to ensure the basic 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’). The obligation shall take precedence over any performance obligation under private or public law.

Amendment 704 #

Proposal for a regulation
Article 21 – paragraph 1

Amendment 705 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Article 21 – paragraph 2

2. The obligation under paragraph 1 can also be imposed by the Commission after having consulted the European Semiconductor Board to other semiconductor undertakings which have accepted such possibility in the context of receiving ~~public support~~European or Member State public support, only if this can be considered justified based on the findings of the impact assessment pursuant to Article 15a(3).

Amendment 706 #

Proposal for a regulation
Article 21 – paragraph 2

2. The ~~obligation~~request under paragraph 1 can also be imposed to other semiconductor undertakings which have accepted such possibility in the context of receiving public support.

Amendment 707 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

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 shall inform the Commission. Should that obligation significantly impact the operation of certain critical sectors, the Commission after having consulted the European Semiconductor Board may oblige that undertaking to accept and prioritise orders of crisis relevant products in line with paragraph 4, 5 and 6, only if this can be considered justified based on the findings of the impact assessment pursuant to Article 15a(3).

Amendment 708 #

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 shall inform the Commission. Should that obligation significantly impact the operation of certain critical sectors, and if the Union is also in a crisis situation, the Commission may oblige that undertaking, where necessary and proportionate, to accept and prioritise orders of crisis relevant products in line with paragraph 4, 5 and 6.

Amendment 709 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Article 21 – paragraph 3

Amendment 710 #

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 shall inform the Commission. Should that ~~obligation~~request significantly impact the operation of certain critical sectors, the Commission may ~~oblig~~advise that undertaking to accept and prioritise orders of crisis relevant products in line with paragraph 4, 5 and 6.

Amendment 711 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN

Proposal for a regulation
Article 21 – paragraph 4

4. The obligations under paragraph 1, 2 and 3 shall be enacted by the Commission via decision. The decision shall be ~~taken~~a last resort measure taken after consulting the European Semiconductor Board, in accordance with all applicable Union legal obligations, having regard to the circumstances of the case, including the principles of necessity and proportionality. The ~~decision shall in particular have regard for~~beneficiary of such a priority order has a due-diligence obligation and should be able to show that it has exhausted all other preventative mitigation measures, such as finding alternative suppliers or creating stockpiles. The decision shall only be made when all other measures have been exhausted and in particular have regard for the preventative mitigation measures taken by the critical sector requesting the priority order and the legitimate aims of the undertaking concerned and the cost and effort required for any change in production sequence. In its decision, the Commission shall state the legal basis of the priority rated order, fix the time-limit within which the order is to be performed, and, where applicable, specify the product and quantity, and state the penalties provided for in Article 28 for non- compliance with the obligation. The priority rated order shall be placed at fair and reasonable price.

Amendment 712 #

Proposal for a regulation
Article 21 – paragraph 4

4. The obligations under paragraph 1, 2 and 3 shall be enacted by the Commission via decision. The decision shall be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case, including the principles of necessity and proportionality and especially the findings of the impact assessment pursuant to Article 15a(3) . The decision shall in particular have regard for the legitimate aims of the undertaking concerned and the cost and effort required for any change in production sequence. In its decision, the Commission shall state the legal basis of the priority rated order, fix the time-limit within which the order is to be performed, ~~and, where applicable,~~ specify the product and quantity, and, where applicable, state the penalties provided for in Article 28 for non- compliance with the obligation. The priority rated order shall be placed at ~~fair and reasonable pric~~a reasonable price, that accounts for the cost and efforts required for any change in the production sequence as well as the cost associated with cancellation or delaying of existing orders, based on the market conditions at that time.

Amendment 713 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 21 – paragraph 4

4. The obligations under paragraph 1, 2 and 3 shall be enacted by the Commission via decision. Before enacting such a decision, the Commission shall consult the European Semiconductor Board. The European Semiconductor Board may advise the Commission on the necessity and proportionality of the decision. The decision shall be taken in accordance with all applicable Union legal obligations, having regard to the advice of the European Semiconductor Board, circumstances of the case, including the principles of necessity and proportionality. The decision shall in particular have regard for the legitimate aims of the undertaking concerned and the cost and effort required for any change in production sequence. In its decision, the Commission shall state the legal basis of the priority rated order, fix the time-limit within which the order is to be performed, and, where applicable, specify the product and quantity, and state the penalties provided for in Article 28 for non- compliance with the obligation. The priority rated order shall be placed at fair and reasonable price.

Amendment 714 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 21 – paragraph 4

4. The obligations under paragraph 1, 2 and 3 shall be enacted by the Commission via decision. The decision shall be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case, including the principles of necessity and proportionality. The decision shall in particular have regard for the legitimate aims of the undertaking concerned and the cost ~~and effort~~, effort, technical practicality, and long-term business consequences, required for any change in production sequence. In its decision, the Commission shall state the legal basis of the priority rated order, fix the time-limit within which the order is to be performed, and, where applicable, specify the product and quantity, and state the penalties provided for in Article 28 for non- compliance with the obligation. The priority rated order shall be placed at fair and reasonable price, reflective of the market price.

Amendment 715 #

Proposal for a regulation
Article 21 – paragraph 4 a (new)

4 a. For those facilities carrying out a priority rated order, the Commission may work within the structures of the European Semiconductor Board to enable Member States to introduce new tax incentives or substantially improve existing ones to stimulate investment in research in the area of semiconductors in accordance with the Commission Communication - Towards a more effective use of tax incentives in favour of R&D.

Amendment 716 #

Proposal for a regulation
Article 21 – paragraph 4 a (new)

4 a. The European Semiconductor Board shall continuously assess and advise the Commission on whether decisions enacted under this Article are appropriate and effective. The European Semiconductor Board may recommend the Commission to limit or cancel enacted decisions.

Amendment 717 #

Proposal for a regulation
Article 21 – paragraph 4 a (new)

4 a. The Commission shall ensure that these extra costs can be covered from the budget allocations before the priority rated order is placed.

Amendment 718 #

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 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 719 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

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, even under preferential treatment of the order;~~deleted

Amendment 720 #

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, or would entail unfeasible technical adjustments or an unrealistic period of time for technical adaptations, even under preferential treatment of the order;

Amendment 721 #

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 technical grounds including the time needed to change the production sequence, insufficient production capability or production capacity, even under preferential treatment of the order;

Amendment 722 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

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.~~deleted

Amendment 723 #

Proposal for a regulation
Article 21 – paragraph 5 – point b

(b) if acceptance of the order would place an unreasonable economic burden ~~and~~, risk to business continuity, or entail particular hardship for the undertaking.

Amendment 724 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 21 – paragraph 6

6. Where an undertaking is obliged to accept and prioritise a priority rated order, it shall not be liable for any breach of contractual obligations that is required to comply with the priority rated orders. The liability shall be excluded only to the extent the violation of contractual obligations was necessary for compliance with the mandated prioritisation. Where necessary and relevant, the Commission shall enter into dialogue with third parties.

Amendment 725 #

Tomas TOBÉ, Sara SKYTTEDAL, Pernille WEISS, Henna VIRKKUNEN

Proposal for a regulation
Article 21 – paragraph 6 a (new)

6 a. The Commission shall make financial and legal provisions for the case that an undertaking is sued for breach of contract outside the jurisdiction of the Member States as a result of the priority rated order.

Amendment 726 #

Proposal for a regulation
Article 22 – paragraph 1

1. The Commission may, upon the request of ~~two or more Member States~~a qualified majority of the Council, 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 certain critical sectors (‘common purchasing’).

Amendment 727 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 22 – paragraph 1

1. The Commission may, ~~upo~~in the ~~request of two or more Member St~~event of a crisis situation and where necessary and proportionates, establish a mandate to act as a central purchasing body on behalf of ~~the participating Member States (‘participating Member States’)~~Member States for their public procurement of crisis-relevant products for certain critical sectors (‘common purchasing’).

Amendment 728 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 22 – paragraph 2

2. The Commission shall, in consultation with the European Semiconductor Board, assess the utility, necessity and proportionality of the request, especially based on the findings of the impact assessment pursuant to Article 15a(3). Where the Commission intends not to follow the request, it shall inform the Member States concerned and the European Semiconductor Board and give reasons for its refusal.

Amendment 729 #

Proposal for a regulation
Article 22 – paragraph 2

2. The Commission shall, in consultation with the European Semiconductor Board, assess the utility, necessity and proportionality ~~of the request~~, and value to the Union, of acting as a common purchasing body. Where the Commission intends not to follow the request, it shall inform ~~the~~ Member States ~~concerned~~ and the European Semiconductor Board and give reasons for its refusal.

Amendment 730 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 22 – paragraph 2

Amendment 731 #

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 organise in detail the common purchasing referred to in paragraph 1.

Amendment 732 #

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 for its own procurement. In particular, special attention shall be paid to an appropriate integration of environmental, social and labour requirements into public procurement procedures, as well as on the principles of equal treatment and transparency, as referred to in the current Financial Regulation as well as in the Directives 2014/24/EU and 2014/25/UE on public procurement. The Commission may have the ability and responsibility, on behalf of all participating Member States, to enter into contracts with economic operators, including individual producers of crisis- relevant products, concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result.

Amendment 733 #

Proposal for a regulation
Article 22 – paragraph 5

5. Where the procurement of crisis- relevant products includes financing from the Union budget, specific conditions may be set out in specific agreements with economic operators. Public spending and support shall always ensure a fair return on investment and ensure strong social and environmental conditionalities.

Amendment 734 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 22 – paragraph 6

6. The Commission shall carry out the procurement procedures and conclude the contracts with economic operators on behalf of the participating Member States. not later than five months after receiving the request stated in paragraph 1 of this Article. The Commission shall invite the participating Member States to appoint representatives to take part in the preparation of the procurement procedures. The deployment and use of the purchased products shall remain the responsibility of the participating Member States.

Amendment 735 #

Proposal for a regulation
Article 22 – paragraph 6

6. The Commission shall carry out the procurement procedures and conclude the contracts with economic operators on behalf of ~~the participating~~ Member States. The Commission shall invite ~~the participating~~ Member States to appoint representatives to take part in the preparation of the procurement procedures. The deployment and use of the purchased products shall remain the responsibility of ~~the participating~~ Member States.

Amendment 736 #

Proposal for a regulation
Article 22 – paragraph 6 a (new)

6 a. By [18 months after the date of entry into force of this Regulation], the Commission shall assess whether, in view of regulatory, technical and market development, it is appropriate, effective, proportionate and justified to establish a common purchasing tool, and, where appropriate, shall amend or terminate this Article for that purpose, accompanied by an impact assessment including quantified cost-benefit analysis and an external study.

Amendment 737 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 22 – paragraph 6 a (new)

6 a. The Commission shall ensure that public policy priorities direct the joint undertakings, and that these operate in an open and transparent way, providing with all requested information in a regular and timely manner, notably through the full publication of signed joint undertaking contracts.

Amendment 738 #

Proposal for a regulation
Article 22 – paragraph 6 a (new)

6 a. The Commission shall ensure that separation of activities and independence is maintained throughout the process, in relation to its other tasks conducted under this Regulation and in relation to the European Semiconductor Board.

Amendment 739 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 23 – paragraph 2 – introductory part

2. The European Semiconductor Board shall provide the Commission with advice and assistance pursuant to this Regulation ~~and~~. Its primary function shall be monitoring the Union and global supply chain for potential disruptions, and facilitating cooperation with international partners in order to ensure stability of production and supply and in strengthening the overall semiconductor ecosystem, in particular, by:

Amendment 740 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 23 – paragraph 2 – point a

(a) ~~providing advice on the Initiative to the Public Authorities Board of the Chips Joint Undertaking~~monitoring Union and global supply chains and crisis response issues;

Amendment 741 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Angelika NIEBLER, Othmar KARAS

Proposal for a regulation
Article 23 – paragraph 2 – point a a (new)

(a a) provide a forum of cooperation, coordination and information exchange with third-country partners, to better enable the monitoring of global supply chains and trends that impact the Union, including through information gathering and crisis assessment, in line with international obligations;

Amendment 742 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 23 – paragraph 2 – point c

Amendment 743 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Angelika NIEBLER

Proposal for a regulation
Article 23 – paragraph 2 – point d

~~(d) addressing monitoring and crisis response issues;~~deleted

Amendment 744 #

Proposal for a regulation
Article 23 – paragraph 2 – point d

(d) addressing monitoring, mapping and value chain transparency in the internal market and globally, and crisis response issues;

Amendment 745 #

Proposal for a regulation
Article 23 – paragraph 2 – point d

(d) providing advice in addressing monitoring and crisis response issues;

Amendment 746 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)

(d a) Creating and regularly updating the long-term mapping of the dynamics in, as well as strengths and weaknesses of the semiconductor value chain in the Union.

Amendment 747 #

Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)

(d a) proposing early warning indicators to the Commission;

Amendment 748 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Angelika NIEBLER

Proposal for a regulation
Article 23 – paragraph 2 – point d b (new)

(d b) providing a forum for cooperation, information exchange and coordination between Member States, the Commission and trustworthy international partners;

Amendment 749 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 23 – paragraph 2 – point e a (new)

(e a) providing advice and assisting the Commission with regard to developing consistent guidelines on how to best protect, in the context of this Regulation, confidential information, including trade secrets or content protected by intellectual property rights, from unlawful access that risks intellectual property theft or industrial espionage.

Amendment 750 #

Proposal for a regulation
Article 23 – paragraph 2 – point e a (new)

(e a) providing advice on the Initiative to the Public Authorities Board of the Chips Joint Undertakings.

Amendment 751 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Angelika NIEBLER

Proposal for a regulation
Article 23 – paragraph 3

~~3. The European Semiconductor Board shall support the Commission in international cooperation, including information gathering and crisis assessment, in line with international obligations.~~deleted

Amendment 752 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Angelika NIEBLER

Proposal for a regulation
Article 23 – paragraph 3

3. The European Semiconductor Board shall support the Commission in international cooperation, including information gathering and crisis assessment, in line with international obligations involving, where appropriate, relevant third countries and within relevant international fora.

Amendment 753 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN

Proposal for a regulation
Article 23 – paragraph 3

3. The European Semiconductor Board shall support the Commission in international cooperation, including aggregated information gathering and crisis assessment, in line with international obligations.

Amendment 754 #

Proposal for a regulation
Article 23 – paragraph 4

4. The European Semiconductor Board shall ensure coordination, cooperation and information exchange, where appropriate, with the relevant crisis response and crisis preparedness structures established under Union law, as well as assist in the assessment and evaluation of Integrated Production Facility and Open EU Foundry status.

Amendment 755 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER, Pernille WEISS

Proposal for a regulation
Article 24 – paragraph 1

1. The European Semiconductor Board shall be composed of representatives of the Member States, representatives of industry stakeholders, for example the Industrial Alliance on Processors and Semiconductor Technologies, and shall be chaired by a representative of the Commission.

Amendment 756 #

Sara SKYTTEDAL

Proposal for a regulation
Article 24 – paragraph 1

1. The European Semiconductor Board shall be composed of representatives of the Member States and shall be chaired by a representative of the Commission. All member states that wish to do so shall have the opportunity to appoint a representative to the board.

Amendment 757 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Mauri PEKKARINEN, Christophe GRUDLER

Proposal for a regulation
Article 24 – paragraph 1

1. The European Semiconductor Board shall be composed of representatives of the Member States, three representatives of the Industrial Alliance on Processors and Semiconductor Technologies, and shall be chaired by a representative of the Commission.

Amendment 758 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 24 – paragraph 1

1. The European Semiconductor Board shall be composed of representatives of the Member States and the European Parliament and shall be chaired by a representative of the Commission.

Amendment 759 #

Proposal for a regulation
Article 24 – paragraph 3

3. On a proposal by and in agreement with the Commission, the European Semiconductor Board shall adopt its rules of procedure by a simple majority of its members. This includes the procedures for voting to remove or maintain the status as an Integrated Production Facility or an Open EU Foundry. Only representatives of Member States and the Commission shall have voting rights.

Amendment 760 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Angelika NIEBLER, Othmar KARAS

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 interests of the semiconductor industry, including the Industrial Alliance on Processors and Semiconductor Technologies, trade unions, and users of semiconductors at Union level, to such sub-groups in the capacity of observers. A sub-group including Union Research and Technology Organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the European Semiconductor Board. Each sub-groups shall be composed of equal representation, including trade unions and users’ organisations. Proceedings and conclusions of the sub-groups meetings shall be made public within short delays.

Amendment 761 #

Proposal for a regulation
Article 24 – paragraph 4

4. The Commission ~~may~~shall establish standing or temporary sub-groups for the purpose of examining specific questions. ~~Where appropriate, t~~The Commission ~~may~~shall invite organisations ~~representing the interests of the semiconductor industry, including the Industrial Alliance on Processors and Semiconductor Technologies and users of semiconductors at Union le~~and experts, industry stakeholders and third-country representativels, to ~~such~~ sub- groups ~~in the capacity of observers~~. A sub-group including Union Research and Technology Organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the European Semiconductor Board.

Amendment 762 #

Proposal for a regulation
Article 24 – paragraph 4

4. TIn addition to the standing sub- group referred to in Article 15(1a), 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 interests of the semiconductor industry, including the Industrial Alliance on Processors and Semiconductor Technologies and users of semiconductors at Union level, to such sub-groups in the capacity of observers. A sub-group including Union Research and Technology Organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the European Semiconductor Board.

Amendment 763 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Christophe GRUDLER

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~~should invite organisations representing the interests of the semiconductor industry, including members of the Industrial Alliance on Processors and Semiconductor Technologies and users of semiconductors at Union level, to participate in such sub- groups ~~in the capacity of observer~~as observers that enjoy speaking rights, but no voting rights. A sub-group including Union Research and Technology Organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the European Semiconductor Board.

Amendment 764 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

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 interests of the semiconductor industry, including the Industrial Alliance on Processors and Semiconductor Technologies and users of semiconductors at Union level, to provide input to such sub-groups in the capacity of observers. A sub-group including Union Research and Technology Organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the European Semiconductor Board.

Amendment 765 #

Proposal for a regulation
Article 25 – paragraph 1

1. The European Semiconductor Board shall hold ordinary meetings at least ontwice a year. It may hold extraordinary meetings at the request of the Commission or a Member State and as referred to in Article 15 and Article 18.

Amendment 766 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 25 – paragraph 3

3. The Chair shall convene the meetings and prepare the agenda in consultation with the members of the European Semiconductor Board, in accordance with the tasks of the European Semiconductor Board pursuant to this Regulation and with its rules of procedure. The Commission shall provide administrative and analytical support for the activities of the European Semiconductor Board pursuant to Article 23.

Amendment 767 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 25 – paragraph 4

4. ~~The Commission may appoint observers to take part in the meetings, as appropriate.~~ The Commission may invite experts with specific expertise, including from relevant stakeholder organisations, with respect to a subject matter on the agenda to take part in the meetings of the European Semiconductor Board on an ad hoc basis. The Commission may facilitate exchanges between the European Semiconductor Board and other Union bodies, offices, agencies and advisory groups. The Commission shall invite a representative from the European Parliament as an observer to the European Semiconductor Board. The Commission shall ensure the participation of relevant other Union institutions and bodies as observers to the European Semiconductor Board with respect to meetings concerning Chapter IV on monitoring and crisis response. ~~Observers and experts shall not have voting rights and shall not participate in the formulation of opinions, recommendations or advice of the European Semiconductor Board and its sub-groups.~~

Amendment 768 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Christophe GRUDLER

Proposal for a regulation
Article 25 – paragraph 4

4. The Commission ~~may~~should involve industry and civil society stakeholders in their respective roles, meaning that the Commission is encouraged to appoint observers to take part in the meetings, as appropriate. The Commission may invite experts with specific expertise, including from relevant stakeholder organisations, such as the Industrial Alliance for Processors and Semiconductor Technologies , with respect to a subject matter on the agenda to take part in the meetings of the European Semiconductor Board on an ad hoc basis. The Commission may facilitate exchanges between the European Semiconductor Board and other Union bodies, offices, agencies and advisory groups. The Commission shall invite a representative from the European Parliament as an observer to the European Semiconductor Board. The Commission shall ensure the participation of relevant other Union institutions and bodies as observers to the European Semiconductor Board with respect to meetings concerning Chapter IV on monitoring and crisis response. Observers and experts shall not have voting rights ~~and shall not~~but may be invited to participate in the formulation of opinions, recommendations or advice of the European Semiconductor Board and its sub-groups.

Amendment 769 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 25 – paragraph 4

Amendment 770 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 25 – paragraph 5

Amendment 771 #

Proposal for a regulation
Article 25 – paragraph 5

5. The European Semiconductor Board shall take the necessary measures to ensure the safe handling and processing of confidential information. Those measures shall comply with the guidance issued by the Commission.

Amendment 772 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 25 – paragraph 5 a (new)

5 a. After a public consultation, the Commission shall work together with the European Semiconductor board and relevant stakeholders to develop a framework and transparent methodology for a long-term strategic mapping of the semiconductor value chain. Those framework and methodology shall be approved by the members of the European Semiconductor board.

Amendment 773 #

Proposal for a regulation
Article 26 – paragraph 2

2. Where Member States designates more than one national competent authority, they shall clearly set out the respective responsibilities of the authorities concerned and ensure that they cooperate effectively and efficiently to fulfil their tasks under this Regulation, including with regard to the designation and activities of the national single point of contact referred to in paragraph 3.

Amendment 774 #

Proposal for a regulation
Article 26 – paragraph 4

4. Each Member State shall notify the Commission of the designation of the national competent authority not later than 60 days after the date of entry into force of this Regulation and, where applicable, the reasons for designating more than one national competent authority, and the national single point of contact, including their precise tasks and responsibilities under this Regulation, their contact information and any subsequent changes thereto.

Amendment 775 #

Adriana MALDONADO LÓPEZ, Lina GÁLVEZ MUÑOZ, Maria-Manuel LEITÃO-MARQUES, Tsvetelina PENKOVA, Nicolás GONZÁLEZ CASARES, Marcos ROS SEMPERE, Alicia HOMS GINEL

Proposal for a regulation
Article 26 a (new)

Article 26 a International Cooperation 1. The Commission, assisted by the European Semiconductor Board, shall enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to identify the availability of raw materials, intermediate products; to assess the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisation or acquisitions of key market actors. 2. The Commission, after consulting relevant third countries, shall seek cooperative solutions to address future supply chain disruptions, in compliance with international obligations and within, where appropriate, relevant international fora. 3. The Commission shall include collaboration in the field of semiconductors and along the entire semiconductor supply chain, in all future investment and trade agreements of the Union with relevant third countries.

Amendment 776 #

Proposal for a regulation
Chapter V – Section 2 a (new)

2a International cooperation Article 26a International cooperation 1. The Commission, on behalf of the Union, shall 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. Complementarities and interdependencies should be focused on the gaps identified through the mapping of undertakings operating in the Union along the semiconductor supply chain. 2. The Commission shall enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking cooperative solutions to address future supply chain disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora, and should ensure robust engagement with the stakeholder community. 3. In future investment and trade agreement of the Union with relevant third countries, collaboration in the field of semiconductors and along the entire semiconductor supply chain shall be a priority. 4. For the purpose of implementing actions under the Initiative's component referred to in Article 5, point d, the Commission may set up an exchange programme for doctoral researchers in semiconductors engineering. The programme shall finance exchange periods for doctoral researchers between two or more higher education institutions in the Union and EEA members, including universities and research and technology organisations, and the relevant third countries. The cooperation agreement shall aim for the reciprocal participation of legal entities established in the Union in equivalent programmes of associated countries.

Amendment 777 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

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 respect the confidentiality of information and data obtained in carrying out their tasks and activities in such a manner as to protect ~~in particular~~any intellectual property rights and sensitive business information orand trade secrets. They shall take appropriate technical and organisational measures to preserve the confidentiality of sensitive business information and trade secrets. This obligation shall apply to all representatives of Member States, key market actors observers, experts and other participants attending meetings of the European Semiconductor Board pursuant to Article 23 and the members of the Committee pursuant to Article 33(1).

Amendment 778 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

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 strictly respect the confidentiality of information and data obtained in carrying out their tasks and activities in such a manner as to protect in particular intellectual property rights and sensitive business, economic and security related information or trade secrets. This obligation shall apply to all representatives of Member States, observers, experts and other participants attending meetings of the European Semiconductor Board pursuant to Article 23 and the members of the Committee pursuant to Article 33(1).

Amendment 779 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 27 – paragraph 2

Amendment 780 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 27 – paragraph 2

2. The Commission and Member States may ~~exchange, where necessary,~~on a case-by-case basis, where necessary and proportionate, and in full compliance with the rules set out within this Regulation and Union law with regard to sensitive business, economic and security related information, exchange confidential information with competent authorities of third countries with which they have agreed on bilateral or multilateral confidentiality arrangements to provide an adequate level of confidentiality.

Amendment 781 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Mauri PEKKARINEN, Nicola DANTI, Christophe GRUDLER

Proposal for a regulation
Article 27 – paragraph 3 a (new)

3 a. 4. The Commission and Member States shall take all reasonable technical, legal and organisational measures to prevent international transfer or governmental access to confidential information, including trade secrets or content protected by intellectual property rights, where such transfer or access would be in contravention of Union law, the national law of the relevant Member State, or where it may impinge on national security or defence interests of the Union or its Member States, without prejudice to paragraph 5 or 6. 5. The Commission and Member States may, where necessary, allow transfer or give access to confidential information within the scope of this Regulation held in the Union to third countries where a bilateral or multilateral agreement on the enforcement of intellectual property rights and the protection of trade secrets and confidential information within the scope of this Regulation is in force and effectively complied with between the requesting entity in a third country and the Union, or between the requesting entity in a third country and a Member State. 6. In the absence of an international agreement as referred to in paragraph 2 of this Article, transfer of or access to confidential information, trade secrets or content protected by intellectual property rights within the scope of this Regulation held in the Union shall take place only where such a transfer or access takes place within one entity, with one or more of its subsidiaries or its direct business partners and where the protection of intellectual property rights, confidential information and trade secrets is ensured by reasonable technical, legal and organisational measures and in full respect of Directives (EU) 2016/943 and 2004/48/EC. 7. The European Semiconductor Board shall advise and assist the Commission in developing guidelines on the assessment of whether the conditions laid down in paragraphs 5 and 6 are met, in particular as regards the technical, legal and organisational measures put in place in order to protect confidential information, trade secrets or intellectual property rights and ensure their effective enforcement. 8. Where the conditions laid down in paragraph 5 or 6 are met, the entity transferring information or providing access thereto shall provide the minimum amount of information needed in order to fulfil the request.

Amendment 782 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 27 – paragraph 3 a (new)

3 a. Where necessary and proportionate the information and data provided by organisations, entities and undertakings shall be handled in accordance with the rules for protecting Union's classified information under Commission Decision (EU, Euratom) 2015/4441a and /or national rules.

Amendment 783 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 27 – paragraph 3 b (new)

3 b. The European Semiconductor Board and the Commission shall ensure that it provides clear and mandated rules safeguarding the circumventing technology protection measures, and the use of confidential data relating to sensitive business, economic and security related data. The requirements under Directive (EU) 2016/943 of the European Parliament and of the Council shall be extended to the provisions of this Regulation.

Amendment 784 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Sara SKYTTEDAL, Tomas TOBÉ, Tom BERENDSEN, Angelika NIEBLER, Pernille WEISS

Proposal for a regulation
Article 27 a (new)

Article 27 a Data and information exchange with third countries 1. The Commission and Member States may exchange, where necessary and proportionate, information with competent authorities of third countries with which they have agreed on bilateral or multilateral arrangements to provide an adequate level of confidentiality. 2. For the purpose of this Regulation, any data transferred to a third country must be tailored as narrowly as possible in order to minimise the amount of data transferred to fulfil the necessary activity. 3. Such information shall be transferred from a single contact point in the Commission, and transferred to a single designated contact point in the third country. The designated provider of the data shall keep a detailed log of all data transmitted to a third country for the purpose of the activities pursued. 4. The third country shall provide guarantees that the data provided is used strictly and exclusively for the purposes of the tasks being fulfilled under this Regulation, and that no further onwards transfers have been made. 5. To prevent unauthorised access to, or disclosure or loss of the data or any unauthorised form of processing, the provided data shall be held in a secure physical environment, stored separately from any other data, and maintained with high level systems and physical intrusion controls. That data shall not be interconnected with any other database. The data shall be limited to those persons involved in the undertaking of these tasks, the names of which shall be provided to the Commission. No copies of provided data shall be made, other than for disaster recovery and backup purposes. 6. Once the data is no longer required, it shall be deleted. This shall be reviewed by the relevant authority in the third country on an annual basis. 7. If it transpires that data has not been treated in accordance with the relevant rules or transferred onwards, then no further data shall be transferred under this Regulation.

Amendment 785 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Christophe GRUDLER

Proposal for a regulation
Article 27 a (new)

Article 27 a IP-theft Guardrails 1. Each undertaking receiving Union funds under this Regulation (beneficiary) shall enter into an agreement with the Commission that, for a duration of 10 years, precludes the beneficiary from engaging in any significant transactions, as defined in that agreement, involving the material expansion of semiconductor manufacturing or R&D capacity in a third country with an intellectual property theft programme directed at the Union or a Member State. This shall not apply to existing facilities, equipment or R&D of a beneficiary intended for manufacturing legacy semiconductors. 2. During the term of agreement, the beneficiary shall notify the Commission of any planned significant transactions. The Commission shall decide whether this constitutes a breach of the agreement, and shall notify the beneficiary. In case of a breach, the Commission can first propose and agree on conditions with the beneficiary for the mitigation of risks concerning intellectual property theft. In lieu of an agreement, the Commission shall request evidence that the planned significant transaction has ceased or has been abandoned. If the beneficiary fails to cease or abandon a breach, the Commission shall recover the full amount of the Union funds provided to the beneficiary, may repeal the decision granting the beneficiary facility the status of Integrated Production Facility or Open EU Foundry, and may impose fines. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.

Amendment 786 #

Proposal for a regulation
Article 27 a (new)

Article 27 a Technology transfer measures 1. Beneficiaries of the Chips for Europe initiative shall take measures, making use of the range of instruments available at Union and national level, to prevent unwanted technology and knowledge transfers. 2. In case of possible transfer of technologies or knowledge developed within the framework of the Chips for Europe initiative to a third country, beneficiaries shall notify the Member State. 3. Upon request of the Member State, the beneficiary shall provide a detailed outline of the measures taken to prevent the unwanted technology transfer to a third country as well as the measures taken to protect undisclosed know-how and business information. 4. The Member State is allowed to prevent or revoke the actions leading to unwanted technology transfer to a third country, based on an analysis on the impact of the transfer on economic and national security and only after careful consultation with the beneficiary, European Commission and other impacted Member States.

Amendment 787 #

Proposal for a regulation
Article 28

1. The Commission may, by decision, where deemed necessary and proportionate: (a) impose fines, where a representative organisations of undertakings or an undertaking, intentionally or through gross negligence, supplies incorrect, incomplete or misleading information in response to a request made pursuant to Article 20, or does not supply the information within the prescribed time limit; (b) impose fines, where an undertaking, intentionally or through gross negligence, does not comply with the obligation to inform the Commission of a third country obligation pursuant to Article 20(5) and Article 21(3); (c) impose periodic penalty payments, where an undertaking, intentionally or through gross negligence, does not comply with an obligation to prioritise the production of crisis-relevant products pursuant to Article 21. 2. Fines imposed in the cases referred to in paragraph 1 (a) and (b) shall not exceed 300 000 EUR. 3. Periodic penalty payments imposed in the cases referred to in paragraph 1 (c) shall not exceed 1.5 % of the average daily turnover in the preceding business year for each working day of non- compliance with the obligation pursuant to Article 21 calculated from the date established in the decision. 4. In fixing the amount of the fine or periodic penalty payment, regard shall be had to the nature, gravity and duration of the infringement, taking due account of the principles of proportionality and appropriateness. 5. Where the undertaking has satisfied the obligation which the periodic penalty payment was intended to enforce, the Commission may fix the definitive amount of the periodic penalty payment at a figure lower than that which would arise under the original decision. 6. The Court of Justice of the European Union shall have unlimited jurisdiction to review decisions whereby the Commission has fixed a fine or a periodic penalty payment. It may cancel, reduce or increase the fine or periodic penalty payment imposed.Article 28 deleted Penalties and fines

Amendment 788 #

Proposal for a regulation
Article 28 – paragraph 1 – point a

(a) impose fines, where a representative organisations of undertakings or an undertaking, intentionally or through gross negligence, supplies incorrect, incomplete or misleading information in response to a request made pursuant to Article 20, or does not supply the information within the prescribed time limit;, and without giving a justified rationale as to why the information was not provided in time.

Amendment 789 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Christophe GRUDLER

Proposal for a regulation
Article 28 – paragraph 1 – point a

(a) impose fines, where a representative organisations of undertakings or an undertaking, intentionally or through gross negligence, supplies incorrect, incomplete or misleading information in response to a request made pursuant to Article 20 and 27a, or does not supply the information within the prescribed time limit;

Amendment 790 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Christophe GRUDLER

Proposal for a regulation
Article 28 – paragraph 1 – point c

(c) impose periodic penalty payments, where an undertaking, intentionally or through gross negligence, does not comply with an obligation to prioritise the production of crisis-relevant products pursuant to Article 21 or fails to cease or abandon a breach pursuant to Article 27a.

Amendment 791 #

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 300 000 EUR.~~deleted

Amendment 792 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Christophe GRUDLER

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 300 000 EUR. If the concerned undertaking is an SME, the fines imposed shall not exceed 100 000 EUR.

Amendment 793 #

Bart GROOTHUIS, Ivars IJABS, Klemen GROŠELJ, Andrus ANSIP, Alin MITUȚA, Nicola BEER, Andreas GLÜCK, Christophe GRUDLER

Proposal for a regulation
Article 28 – paragraph 3

Amendment 794 #

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 ~~1.5~~ 6% of the average daily turnover in the preceding business year for each working day of non-compliance with the obligation pursuant to Article 21 calculated from the date established in the decision.

Amendment 795 #

Proposal for a regulation
Article 29

Limitation period for the imposition of fines and periodic penalty payments 1. The powers conferred on the Commission by Article 28 shall be subject to the following limitation periods: (a) two years in the case of infringements of provisions concerning requests of information pursuant to Article 20; (b) two years in the case of infringements of provisions concerning information obligation pursuant to Article 20(5) and Article 21(3); (c) three years in the case infringements of provisions concerning the obligation to prioritise the production of crisis-relevant products pursuant to Article 21. 2. The time shall begin to run on the day on which the infringement is committed. However, in case of continuous or repeated infringements, time shall begin to run on the day on which the infringement ceases. 3. Any action taken by the Commission or the competent authorities of the Member States for the purposes of ensuring compliance with the provisions of this Regulation shall interrupt the limitation period. 4. The interruption of the limitation period shall apply for all the parties which are held responsible for the participation in the infringement. 5. Each interruption shall start the time running afresh. However, the limitation period shall expire at the latest on the day in which a period equal to twice the limitation period has elapsed without the Commission having imposed a fine or a periodic penalty payment. That period shall be extended by the time during which the limitation period is suspended because the decision of the Commission is the subject of proceedings pending before the Court of Justice of the European Union.Article 29 deleted

Amendment 796 #

Proposal for a regulation
Article 30

Limitation period for the enforcement of 1. The power of the Commission to enforce decisions taken pursuant to Article 28 shall be subject to a limitation period of three years. 2. Time shall begin to run on the day on which the decision becomes final. 3. The limitation period for the enforcement of fines and periodic penalties payments shall be interrupted: (a) by notification of a decision varying the original amount of the fine or periodic penalty payment or refusing an application for variation; (b) by any action of the Commission or of a Member State, acting at the request of the Commission, designed to enforce payment of the fine or periodic penalty payment. 4. Each interruption shall start time running afresh. 5. The limitation period for the enforcement of fines and periodic penalty payments shall be suspended for so long as: (a) time to pay is allowed; (b) enforcement of payment is suspended pursuant to a decision of the Court of Justice.Article 30 deleted penalties

Amendment 797 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 31

Right to be heard for the imposition of 1. Before adopting a decision pursuant to 28, the Commission shall give the undertaking or representative organisations of undertakings concerned the opportunity of being heard on: (a) preliminary findings of the Commission, including any matter to which the Commission has taken objections; (b) measures that the Commission may intend to take in view of the preliminary findings pursuant to point (a) of this paragraph. 2. Undertakings and representative organisations of undertakings concerned may submit their observations to the Commission’s preliminary findings within a time limit which shall be fixed by the Commission in its preliminary findings and which may not be less than 14 days. 3. The Commission shall base its decisions only on objections on which undertakings and representative organisations of undertakings concerned have been able to comment. 4. The rights of defence of the undertaking or representative organisations of undertakings concerned shall be fully respected in any proceedings. The undertaking or representative organisations of undertakings concerned shall be entitled to have access to the Commission's file under the terms of a negotiated disclosure, subject to the legitimate interest of undertakings in the protection of their business secrets. The right of access to the file shall not extend to confidential information and internal documents of the Commission or the authorities of the Member States. In particular, the right of access shall not extend to correspondence between the Commission and the authorities of the Member States. Nothing in this paragraph shall prevent the Commission from disclosing and using information necessary to prove an infringement.Article 31 deleted fines or periodic penalty payments

Amendment 798 #

Marie DAUCHY, Thierry MARIANI, Paolo BORCHIA, Elena LIZZI, Matteo ADINOLFI, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a regulation
Article 31 – paragraph 4

Amendment 799 #

1. ~~By three years after the date of application of this Regulation and every four years thereafter,~~Every 18 months the Commission shall submit a report on the evaluation and review of this Regulation to the European Parliament and to the Council. The findings of the report shall be presented to the European Parliament. The reports shall be made public.

Amendment 800 #

Eva MAYDELL, Pilar del CASTILLO VERA, Maria da Graça CARVALHO, Angelika WINZIG, Ivan ŠTEFANEC, Marion WALSMANN, Tom BERENDSEN, Angelika NIEBLER

Proposal for a regulation
Article 35 – paragraph 1 a (new)

1 a. Sensitive and restricted information shall be redacted or processed by the European Parliament in accordance with existing rules and protocols.

Amendment 801 #

Proposal for a regulation
Annex I – Part 3 – paragraph 1 – point a

(a) Innovative design libraries for quantum chips building on the design and fabrication processes of the well- established processes of the classical semiconductor industry for semiconductor- and photonics-based qubit platforms; complemented by the development of innovative and advanced design libraries and fabrication processes for the alternative qubit platforms (superconductor-, ion-, and atom-based qubits) that are not compatible with semiconductors.

Amendment 802 #

Proposal for a regulation
Annex I – Part 3 – paragraph 1 – point b

(b) Pilot lines for the integration of quantum circuits and control electronics ~~for building quantum chips building on and capitalising on ongoing research; and,~~and for providing access to dedicated clean rooms and foundries for prototyping and production, reducing the entry-barrier for the development and production of small volumes of quantum components and accelerating the innovation cycles.

Amendment 803 #

Proposal for a regulation
Annex I – Part 3 – paragraph 1 – point c

(c) Testing and experimentation facilities for testing and validating advanced quantum components including those produced by the pilot lines, closing the innovation feedback loop between designers, producers and users of quantum components.

Amendment 804 #

Proposal for a regulation
Annex II

MEASURABLE INDICATORS TO MONITOR THE IMPLEMENTATION AND TO REPORT ON THE PROGRESS OF THE INITIATIVE TOWARDS THE ACHIEVEMENT OF ITS OBJECTIVES 1. The number of legal entities involved (subdivided by size, type and country of establishment) in the actions supported by the Initiative. 2. The number of design tools developed or integrated under the Initiative. 3. The total amount co-invested in design capacities and pilot lines under the Initiative. 4. The number of users or user communities getting access to design capacities and pilot lines under the Initiative. 5. The number of businesses, which have used the services of national competence centres supported by the Initiative. 6. The number of persons who have received training to acquire advanced skills and training on semiconductor and quantum technologies supported by the Initiative. 7. The number of start-ups, scale-ups and SMEs who have received venture capital from the ‘Chips Fund’ activities and the total amount of capital investments made. 8. The amount of investment by companies operating in the EU, taking into consideration the segment of the value chain in which they operate.deleted

source: 737.266

2022/10/26 BUDG 6 amendments...

Amendment 1 #

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union, always aiming at achieving the objectives of the green transition, and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies.

Amendment 2 #

Mauri PEKKARINEN, Nils TORVALDS, Olivier CHASTEL, Moritz KÖRNER

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, while also aiming to boost the industrial capacities in Member States where the research, design and production of semiconductors is underdeveloped.

Amendment 3 #

Proposal for a regulation
Recital 9 a (new)

(9 a) As the Chips Initiative was introduced after the adoption of the current 2021-2027 MFF, its implementation should not lead to a reduction of funding in other priority programmes, namely Horizon Europe and Digital Europe. Consequently any earmarking from those programmes to the Chips initiative should be compensated by alternative means, such as decommitments under Article 15(3) of the Financial Regulation, to full extent. Furthermore, to ensure stable funding of the initiative, the funding of the Chips Act should be prioritised in the mid-term review of the MFF.

Amendment 4 #

Mauri PEKKARINEN, Nils TORVALDS, Olivier CHASTEL, Moritz KÖRNER

Proposal for a regulation
Recital 9 a (new)

(9 a) In order to counter the emerging territorial distortion triggered by imbalances in economic means for investments in the semiconductor ecosystem between Member States and to enable the further development and regional diffusion of the semiconductor ecosystem also in smaller Member States, an instrument should be established to create a financial balancing mechanism.

Amendment 5 #

Proposal for a regulation
Recital 10

(10) The Horizon Europe Framework programme established by Regulation (EU) 2021/695 of the European Parliament and of the Council51 (Horizon Europe) – the Framework Programme for Research and Innovation, has the objective to strengthen the European research area (ERA), encouraging it to become more competitive, including in its industry, while promoting all research and innovation (R&I) activities to deliver on the Union's strategic priorities and commitments, which ultimately aim to promote peace, the Union's values and the well-being of its peoples. As a major priority of the Union, the total financial resources allocated to the programme should not be reduced and the reduction of the financial resources of the programme, aimed to reinforce the financial envelope of the Digital Europe programme with the aim of contributing to the Chips initiative, should be fully compensated by another source. Consequently, without prejudice to the institutional prerogatives of the European Parliament and of the Council, an amount of commitment appropriations equivalent to the reduction should be made available to Horizon Europe over the period 2023- 2027, resulting from total or partial non- implementation of projects belonging to that programme or its predecessor, as provided for in Article 15(3) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council52 (the Financial Regulation). This amount will be in addition to the EUR 0.5 billion (in 2018 prices) already mentioned in the Joint Declaration by the European Parliament, the Council and the Commission on the re- use of decommitted funds in relation to the research programme. _________________ 51 Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013. (OJ L 170, 12.5.2021, p. 1). 52 Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

Amendment 6 #

Proposal for a regulation
Recital 11

(11) In order to equip the Union with the semiconductor technology research and innovation capacities needed to maintain its research and industrial investments at a leading edge, and bridge the current gap between research and development and manufacturing, the Union and its Member States should better coordinate their efforts and co-invest, while aiming to boost the research capacities of Member States that do not have the ability to benefit from the industrial manufacturing of chips and their components, so that Member States can equally benefit from such long-term investments. To achieve this, the Union and Member States, should take into consideration the twin digital and green transition goals. The Initiative throughout all components and actions, to the extent possible, should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient, effective, clean and durable use of resources, including energy and materials necessary for production and the whole lifecycle use of semiconductors.

source: 737.474

2022/11/04 JURI 237 amendments...

Amendment 100 #

Proposal for a regulation
Recital 46

(46) A number of sectors are critical for the proper functioning of the internal market. Those critical sectors are the sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities61 as well as the producers of renewable energy, storage and distribution and transmission equipment. For the purposes of this Regulation, defence and other activities that are relevant for public safety and security should be additionally considered as a critical sector. Certain measures should only be enacted fur the purpose of securing supply to critical sectors. The Commission may limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation. _________________ 61 COM(2020) 829. 16.12.2020.

Amendment 101 #

Proposal for a regulation
Recital 48

Amendment 102 #

Proposal for a regulation
Recital 52

(52) The obligation to prioritise the production of certain products respects the essence of and will not disproportionately affect the freedom to conduct a business and the freedom of contract laid down in Article 16 of the Charter of Fundamental Rights of the European Union (‘the Charter’) and the right to property laid down in Article 17 of the Charter. Any limitation of those rights in this Regulation ~~will~~, in accordance with Article 52(1) of the Charter, needs to be provided for by law, respect the essence of those rights and freedoms, and comply with the principle of proportionality.

Amendment 103 #

(56) A representative of the Commission should chair the European Semiconductor Board. Each Member State’s national single point of contact should appoint at least one high-level representative to the European Semiconductor Board. They could also appoint different representatives in relation to different tasks of the European Semiconductor Board, for example, depending on which Chapter of this Regulation is discussed in the meetings of the European Semiconductor Board, the European Parliament should appoint a representative. The Commission may establish sub-groups and should be entitled to establish working arrangements by inviting experts to take part in the meetings on an ad hoc basis or by inviting organisations representing the interests of the Union semiconductors industry, such as the Industrial Alliance on Processors and Semiconductor Technologies, in its sub- groups as observers.

Amendment 104 #

Proposal for a regulation
Recital 58

(58) Member States hold a key role in the application and enforcement of this Regulation. In this respect, each Member State shcould designate ~~one or more national competent~~a competent national authorit~~ies~~y for the purpose of effective implementation of this Regulation and ensure that th~~ose~~at authorit~~ies are~~y is adequately empowered and resourced. Member States could designate an existing authority ~~or authorities~~. In order to increase organisation efficiency in the Member States and to set an official point of contact vis-a-vis the public and other counterparts at Member State and Union levels, including the Commission and the European Semiconductor Board, each Member State should designate, within ~~one of the~~any authorit~~ies it~~y it has designated as competent authority under this Regulation, one national single point of contact responsible for coordinating issues related to this Regulation and cross-border cooperation with competent authorities of other Member States.

Amendment 105 #

Proposal for a regulation
Recital 58

(58) ~~Member States hold a key role in the application and enforcement of this Regulation. In this respect, e~~Each Member State should designate one or more national competent authorities for the purpose of effective implementation of this Regulation and ensure that those authorities are adequately empowered and resourced, and that the relevant administrative bodies have the necessary level of expertise. Member States could designate an existing authority or authorities. In order to increase organisation efficiency in the Member States and to set an official point of contact vis-a-vis the public and other counterparts at Member State and Union levels, including the Commission and the European Semiconductor Board, each Member State should designate, within one of the authorities it designated as competent authority under this Regulation, one national single point of contact responsible for coordinating issues related to this Regulation and cross-border cooperation with competent authorities of other Member States.

Amendment 106 #

Proposal for a regulation
Recital 59

(59) In order to ensure trustful and constructive cooperation of competent authorities at Union and national level, all parties involved in the application of this Regulation should strictly respect the confidentiality of information and data obtained in ~~carrying out their task~~the course of their tasks, including trade secrets, security-related aspects and content protected by intellectual property rights. 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 should not disclose information acquired or exchanged by them pursuant to this Regulation and of the kind covered by the obligation of professional secrecy. This should also apply to the European Semiconductor Board and the Semiconductor Committee established in this Regulation. Where appropriate, the Commission should be able to adopt implementing acts to specify the practical arrangements for the treatment of confidential information in the context of information gathering. Any breach of this confidentiality should result in a full investigation by the Commission, and if and where necessary, the Commission should revise the practical arrangements and guidance for the treatment of confidential information.

Amendment 107 #

Proposal for a regulation
Recital 59

(59) In order to ensure trustful and constructive cooperation of competent authorities at Union and national level, all parties involved in the application of this Regulation should respect the confidentiality of information and data obtained in carrying out their tasks. 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 should not disclose information acquired or exchanged by them pursuant to this Regulation and of the kind covered by the obligation of professional secrecy. This should also apply to the European Semiconductor Board and the Semiconductor Committee established in this Regulation. Where appropriate, the Commission should be able to adopt ~~implementing~~delegated acts to specify the practical arrangements for the treatment of confidential information in the context of information gathering.

Amendment 108 #

Proposal for a regulation
Recital 62

(62) In order to ensure uniform conditions for the implementation of this Regulation, ~~implementing~~delegated powers should be conferred on the Commission as regards the selection of ECICs and as regards the procedure for establishing and defining the tasks of competence centres and the procedure for establishing the network, so that the objectives of the Initiative are achieved. Furthermore, ~~implementing~~delegated powers should be conferred on the Commission as regards activating the crisis stage in a semiconductor crisis, to allow a rapid and coordinated response, and for specifying the practical arrangements for the treatment of confidential information. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council64 of the European Parliament and of the Council. _________________ 64 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers, (OJ L 55, 28.2.2011, p. 13).

Amendment 109 #

Proposal for a regulation
Article premier – paragraph 1 – point c

(c) setting up a coordination mechanism between the Member States and the Commission for monitoring the supply of semiconductors and crisis response to semiconductor shortages, with the aim of contributing to the European Union's strategic autonomy in the field of technology.

Amendment 110 #

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism between the Member States and the Commission for monitoring the supply of semiconductors and crisis response to semiconductor shortages in the specific cases..

Amendment 111 #

Proposal for a regulation
Article 2 – paragraph 1 – point 2

(2) ‘chip’ means an electronic device comprising various functional elements on a single piece of semiconductor material, typically taking the form of memory, logic, processor and ~~analogue~~other, application-specific, analogue, digital, and mixed, permanently or temporarily programmed devices, also referred to as ‘integrated circuit’;

Amendment 112 #

Proposal for a regulation
Article 2 – paragraph 1 – point 4

(4) ‘semiconductor supply chain’ means the system of activities, organisations, actors, technology, information, resources and services involved in the production of semiconductors, including raw materials, manufacturing equipment, research, design, fabrication, assembly, testing and packaging;

Amendment 113 #

Proposal for a regulation
Article 2 – paragraph 1 – point 10

(10) ‘first-of-a-kind facility’ means an new or retrofitted industrial facility capable of semiconductor manufacturing or design, including front-end or back-end, or both, or capable of manufacturing materials or equipment specifically used in semiconductor manufacturing, that is not substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, and other product or production innovation that can offer state-of-the-art or better performance, process innovation or ~~energy and environmental performance;~~ increases the recyclability of semiconductors, reduces significantly and demonstrably the required production inputs, such as energy, water, toxic chemicals, heavy metals and rare earths, demonstrably enables energy savings in other industries and sectors and enables the deployment of renewable energy, storage and transmission capacities;

Amendment 114 #

Proposal for a regulation
Article 2 – paragraph 1 – point 11

(11) ‘next generation chips’ and ‘next generation semiconductor technologies’ means chips and semiconductor technologies that go beyond the state of the art in offering significant improvements in computing power or energy efficiency ~~as well as other significant energy and environmental gain~~, security, or the efficiency of energy generation, storage, and transmission, as well as improvements in recyclability and other significant energy and environmental gains, or that require significantly and demonstrably less production inputs, such as energy, water, toxic chemicals, heavy metals and rare earths;

Amendment 115 #

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, ~~the defen~~all sectors producing equipment for the development and deployment of renewable energy generation, storage, distribution and transmission capacity, the defence and space sector and other activities that are relevant for public safety and security;

Amendment 116 #

Proposal for a regulation
Article 2 – paragraph 1 – point 16

(16) ‘critical sector’ means 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, the defence sector and other activities that are relevant for public safety and security, in particular energy, health, transport and digital services;

Amendment 117 #

Proposal for a regulation
Article 2 – paragraph 1 – point 16 a (new)

(16 a) ‘critical entity’ means a critical entity as defined in Article 2(1) of Directive (EU) No 2022/…. on the resilience of critical entities];

Amendment 118 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17

Amendment 119 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)

(17 a) (17 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 demonstrably prevents the normal functioning of critical sectors in providing essential goods and services to EU citizens;

Amendment 120 #

Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)

Amendment 121 #

Jana TOOM, Karen MELCHIOR

Proposal for a regulation
Article 2 – paragraph 1 – point 19 a (new)

(19 a) (19a) ‘Free and open source’ means software or related content, such as source code or design documents, that can be freely run, copied, distributed, studied, or improved by anyone, based on code or documents that are distributed under licensing terms that permit universal access, modification and redistribution.

Amendment 122 #

Proposal for a regulation
Article 2 – paragraph 1 – point 19 a (new)

(19 a) ‘Free and open source’ means software or related content, such as source code or design documents, that is free to use and can be studied or improved by anyone because it is based on a code that anyone can use, under licensing terms that permit universal access, modification and free redistribution

Amendment 123 #

Proposal for a regulation
Article 2 – paragraph 1 – point 19 a (new)

(19a) 'open source' means software source code made publicly available and accessible, with the software concerned subsequently being modifiable and distributable free of charge by any natural or legal person.

Amendment 124 #

Proposal for a regulation
Article 3 – paragraph 2

Amendment 125 #

Proposal for a regulation
Article 4 – paragraph 1

1. The general objective of the Initiative is to ~~support large-sca~~improve the long-term relative competitiveness of the EU semiconductor industry by leveraging already existing capabilities and comparative advantages and investing in a cost-effective way and foster to the extent possible 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 twin digital and green transition.

Amendment 126 #

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 demonstrably and quantifiably prove the added value of the investment for the Union citizens, in sectors where no private alternative of funding exists, reinforce the Union advanced design, systems integration and chips production capabilities, as well as contribute to the achievement of the twin digital and green transition.

Amendment 127 #

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's capabilities and strategic autonomy regarding advanced design, systems integration and chips production ~~capabilities~~, as well as contribute to the achievement of the ~~twin~~ digital ~~and green~~ transition.

Amendment 128 #

Proposal for a regulation
Article 4 – paragraph 2 – point a – introductory part

(a) building up advanced ~~large-scale~~and specialised design capacities for integrated semiconductor technologies. This operational objective shall be achieved through:

Amendment 129 #

Proposal for a regulation
Article 4 – paragraph 2 – point a – point 2

(2) upgrading the design capacity with ongoing innovative developments, such as processor architectures based on the open- source Reduced Instruction Set Computer Architecture (RISC-V) or open-source computer-aided design tools;

Amendment 130 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2

(2) supporting ~~large scale~~ innovation through access to new or existing pilot lines for experimentation, test, and validation of new design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering ~~sustainable energy and~~renewable energy, manufacturing according to the highest environmental standards with an obligation to reduce the required production inputs, such as water, energy, toxic chemicals, heavy metals and rare earths, electro mobility, lower energy consumption, higher energy and resource efficiency, security, higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies;

Amendment 131 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2

(2) supporting large scale innovation through access to new or existing pilot lines for experimentation, test, and validation of new design concepts, designed by means of technologies such as open-source computers and software, integrating key functionalities, such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility, lower energy consumption, security, higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies;

Amendment 132 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2

(2) supporting large scale innovation through access to new or existing pilot lines for experimentation, test, and validation of new and evolving existing design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility, lower energy consumption, security, higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies;

Amendment 133 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 3

(3) providing support to Integrated Production Facilities and Open EU Foundries through priority access to the new pilot lines. Providing access to new pilot lines for all interested parties and guaranteeing access to start-ups and SMEs.

Amendment 134 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 3

(3) providing support to Integrated Production Facilities and Open EU Foundries, including public and non- profit-making structures, through priority access to the new pilot lines.

Amendment 135 #

Proposal for a regulation
Article 4 – paragraph 2 – point b – point 3 a (new)

3a) ensuring the European taxpayer a fair return on investment by sharing revenue in a manner proportionate to the financial contribution of the Union and the participating Member States.

Amendment 136 #

Proposal for a regulation
Article 4 – paragraph 2 – point c

(c) building advanced technology and engineering capacities for accelerating ~~the~~ innovativon, such as the development of quantum chips.

Amendment 137 #

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 2

Amendment 138 #

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 2

(2) address the skills shortage, attracting ~~and~~, mobilising and winning the loyalty of new talent and supporting the emergence of a suitably skilled workforce for strengthening the semiconductor sector, including via reskilling and upskilling of workers.

Amendment 139 #

Proposal for a regulation
Article 4 – paragraph 2 – point e – introductory part

(e) undertaking activities, to be described collectively as a ‘Chips Fund’ activities to 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, contingent upon proportionate ownership of the intellectual property rights resulting from these activities, with a view to:

Amendment 140 #

Proposal for a regulation
Article 4 – paragraph 2 – point e – point 1

Amendment 141 #

Proposal for a regulation
Article 5 – paragraph 1 – point c

Amendment 142 #

Proposal for a regulation
Article 6 – paragraph 1

Amendment 143 #

Proposal for a regulation
Article 7 – paragraph 1

Amendment 144 #

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 of the Member States, and private legal entities;

Amendment 145 #

Proposal for a regulation
Article 7 – paragraph 3 – point b a (new)

(b a) a document detailing how actions taken by the ECIC will technically contribute to the objectives described in Article 4;

Amendment 146 #

Proposal for a regulation
Article 7 – paragraph 3 – point b b (new)

(b b) a detailed and reasoned statement on how much public funding is necessary to achieve the actions outlined in the application.

Amendment 147 #

Proposal for a regulation
Article 7 – paragraph 4 – point f a (new)

(f a) the clear and demonstrable contribution of the eligible action proposed to be implemented to the long term competitiveness of the EU semiconductor industry and the objectives described in Article 4;

Amendment 148 #

Proposal for a regulation
Article 7 – paragraph 4 – point f b (new)

(f b) cost-effectiveness of the eligible action proposed to be implemented;

Amendment 149 #

Proposal for a regulation
Article 7 – paragraph 4 – point f c (new)

(f c) contribution to achieving the twin green and digital transition, of the eligible action proposed to be implemented;

Amendment 150 #

Proposal for a regulation
Article 7 – paragraph 4 – point f d (new)

Amendment 151 #

Proposal for a regulation
Article 7 – paragraph 4 – point f e (new)

(f e) the participation of SMEs and start-ups.

Amendment 152 #

Proposal for a regulation
Article 7 – paragraph 5 – subparagraph 1 – introductory part

The Commission by means of a~~n implementing~~ delegated act and based on the criteria set out in paragraph 4, shall adopt one of the following decisions:

Amendment 153 #

Proposal for a regulation
Article 7 – paragraph 5 – subparagraph 2

The ~~implementing~~delegated act shall be adopted in accordance with the examination procedure referred to in Article 33(2).

Amendment 154 #

Proposal for a regulation
Article 7 – paragraph 9

9. The ECIC shall produce an annual activity report, containing a technical description of its activities and financial statement as well as a social impact report concerning employment and training. The annual activity report shall be transmitted to the Commission and made publicly available. The Commission may provide recommendations regarding the matters covered in the annual activity report.

Amendment 155 #

Proposal for a regulation
Article 8 – paragraph 1

Amendment 156 #

Proposal for a regulation
Article 8 – paragraph 3

Amendment 157 #

Proposal for a regulation
Article 9 – paragraph 1

1. The ~~components listed in points (a) to (d) of Article 5 under the Initiative may be entrusted to~~general objectives as well as the objectives described in Article 4 paragraph 2, points a, b, and c, shall be stated in their entirety in the basic act establishing the Chips Joint Undertaking referred to in Council Regulation XX/XX amending Council Regulation (EU) 2021/2085 and implemented in the work programme of the Chips Joint Undertaking.

Amendment 158 #

Proposal for a regulation
Article 10 – paragraph 1

Amendment 159 #

Proposal for a regulation
Article 10 – paragraph 2 – point b

Amendment 160 #

Proposal for a regulation
Article 10 – paragraph 2 – point c

Amendment 161 #

Proposal for a regulation
Article 10 – paragraph 2 – point c

(c) it guarantees not to be subject to the extraterritorial application of laws or 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 a piece of legislation running counter to such an obligation arises;

Amendment 162 #

Proposal for a regulation
Article 10 – paragraph 2 – point d

(d) it commits to invest in the next generation of chips., including by means of workforce training activities;

Amendment 163 #

Proposal for a regulation
Article 10 – paragraph 2 – point d

(d) it commits to invest in the design, production, packaging, reuse or recycling of next generation of chips.

Amendment 164 #

Proposal for a regulation
Article 10 – paragraph 3

3. For the purpose of investing in the design, production, packaging, reuse or recycling of the next generation of chips according to paragraph 2, point (d), the Integrated Production Facility shall have ~~priority~~ access to the pilot lines set up in accordance with Article 5, point (b). Any such ~~priority~~ access shall be without prejudice to effective access to the pilot lines by other interested undertakings, especially SMEs and start-ups .

Amendment 165 #

Proposal for a regulation
Article 11 – paragraph 1

1. Open EU Foundries are new or retrofitted 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. or improve the relative competitiveness of the EU semiconductor industry.

Amendment 166 #

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 with regard to ensuring the security of supply, inter alia by increasing the strategic relevance of or demand for specific EU semiconductor products and services within the global semiconductor value chain, and increasing qualified workforce, taking into account in particular the extent to which it offers design or front-end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand;

Amendment 167 #

Proposal for a regulation
Article 11 – paragraph 2 – point c

Amendment 168 #

Proposal for a regulation
Article 11 – paragraph 2 – point c

Amendment 169 #

Proposal for a regulation
Article 11 – paragraph 2 – point d

(d) it commits to invest in the next generation of chips., including by means of workforce training activities;

Amendment 170 #

Proposal for a regulation
Article 11 – paragraph 2 – point d

(d) it commits to invest in the design, production, packaging, reuse or recycling of the next generation of chips.

Amendment 171 #

Proposal for a regulation
Article 11 – paragraph 4

4. For the purpose of investing in the design, production, packaging, reuse or recycling of the next generation of chips according to paragraph 2, point (d), the Open EU Foundry shall have priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings, especially SMEs and start-ups .

Amendment 172 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point b

(b) a business plan evaluating the financial and technical viability of the project, including information on any planned public support;. All data and documentation submitted as part of this application shall be carefully protected in accordance with the rules reflected in this regulation; in particular sensitive business, economic, and security related information in any such application must be protected.

Amendment 173 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point b

(b) a business plan evaluating the financial viability of the project, including ~~information on~~a detailed calculation of any funding gap including a description of the methodology that is used for this calculation and any planned public support;

Amendment 174 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d a (new)

(d a) a detailed environmental and climate impact assessment, especially focusing on water and energy use as well as the use, treatment and disposal of toxic chemicals, heavy metal and rare earths;

Amendment 175 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d b (new)

(d b) its cost-effectiveness in achieving the stated targets;

Amendment 176 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d c (new)

(d c) the commitment to invest in re- and upskilling of the existing labour force as well investing into training and education.

Amendment 177 #

Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 2

Amendment 178 #

Proposal for a regulation
Article 12 – paragraph 3

3. The Commission shall monitor the activities of the Integrated Production Facilities and the Open EU Foundries, in particular to the extent necessary to evaluate if all the requirements for recognising a facility as Integrated Production facility or Open EU Foundry are fulfilled. Where the Commission finds that a facility no longer fulfils the criteria set out in Articles 10(2) or in Article 11(2) respectively, it shall notify the findings to the European Semiconductor Board. After consulting the European Semiconductor Board and after hearing the facility, the Commission may repeal the decision granting a facility the status of Integrated Production Facility or Open EU Foundry.

Amendment 179 #

Proposal for a regulation
Article 14 – paragraph 2

2. Where such status exists in national law, Integrated Production Facilities and Open EU Foundries shall be allocated the status of the highest national significance ~~possible and be treated as such in permit granting processes, including those relating to environmental assessments and if national law so provides, in spatial planning~~. In order to comply to the goals of the twin green and digital transition, no derogation from environmental assessments and requirements shall be granted, while stringent requirements shall be put in place to reduce and remedy the use of water and biodiversity impact. In determining the location of such facilities, the spatial planning procedures shall continue applying unchanged and the interaction with regional infrastructure and its environmental and social consequences should be factored in to the decision to allow any construction.

Amendment 180 #

Proposal for a regulation
Article 14 – paragraph 3

Amendment 181 #

Proposal for a regulation
Article 14 – paragraph 4

Amendment 182 #

Proposal for a regulation
Chapter IV – title

IV Monitoring ~~and~~, Crisis Prevention and Response

Amendment 183 #

Proposal for a regulation
Article 15 – title

Monitoring and alerting of semiconductor crisis

Amendment 184 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

Amendment 185 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a

(a) ~~monitor~~encourage relevant stakeholders to monitor and inform them about early warning indicators identified pursuant to Article 16;

Amendment 186 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a a (new)

(a a) identify best practices for risk mitigation and crisis measures;

Amendment 187 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a b (new)

(a b) assess the risks threatening the functioning of critical entities in relation semiconductors;

Amendment 188 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a c (new)

(a c) compare and quantify the impacts of the available risk mitigation measures;

Amendment 189 #

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2

Member States shall provide relevant findings to the European Semiconductor Board ~~in the form of regular updates~~.

Amendment 190 #

Proposal for a regulation
Article 15 – paragraph 2

Amendment 191 #

Proposal for a regulation
Article 15 – paragraph 3

3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. Such information shall notably address the responsibility to respect human rights, social rights, human health and the environment throughout the semiconductor value chain. National competent authorities in such case will pay particular attention to SMEs to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.

Amendment 192 #

Proposal for a regulation
Article 15 – paragraph 3

3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. National competent authorities in such case will pay particular attention to SMEs to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27. Provision of such information shall be voluntary.

Amendment 193 #

Proposal for a regulation
Article 15 – paragraph 3 a (new)

3 a. The Commission shall produce an annual report in cooperation with the European Semiconductor Board in order to assess the regularity of information requests, the type and volume of information being requested, in particular from SMEs. It shall identify if necessary, the need to further streamline processes and provide further support in navigating information requests in the context of this Regulation.

Amendment 194 #

Proposal for a regulation
Article 15 – paragraph 4

Amendment 195 #

Proposal for a regulation
Article 15 – paragraph 4

Amendment 196 #

Proposal for a regulation
Article 15 – paragraph 7

7. National competent authorities designated pursuant to Article 26(1) ~~shall~~may map undertakings operating along the semiconductor supply chain in their national territory, including non- confidential information on the services or goods, and contact information. They ~~shall~~may notify this list and any subsequent update to the Commission. The Commission may issue guidance, after consulting the European Semiconductor Board, to further specify the information to be gathered and define the technical specifications and formats.

Amendment 197 #

Proposal for a regulation
Article 15 – paragraph 7 a (new)

7 a. The obligations provided under this Article are complementary to Directive [XXX] on Corporate Sustainability Reporting and to Directive [XXX] on Corporate Sustainability Due Diligence.

Amendment 198 #

Proposal for a regulation
Article 16 – paragraph 2 a (new)

2 a. 2 a. By [18 months after entering into force of this Regulation], the Commission shall assess whether, in view of regulatory and market development, the risk assessment and early warning indicators are effective, proportionate, evidence-based and sufficient to identify the risks. The early warning indicators shall also assess the optimal level of resilience considering the market effectiveness, market flexibility, the resilience price premium and the risk premium. Where appropriate, the Commission shall amend or terminate this article for that purpose, accompanied by impact assessment including quantified cost-benefit analysis and an external study.

Amendment 199 #

Proposal for a regulation
Article 17 – paragraph 1 – point c a (new)

(c a) the respect of due diligence obligations by a market actor, in relation to the impact of its activity on human rights, social rights, human health and the environment;

Amendment 200 #

Proposal for a regulation
Article 18 – paragraph 1 – introductory part

Amendment 201 #

Proposal for a regulation
Article 18 – paragraph 1 – introductory part

1. A semiconductor crisis shall be considered to occur when there are serious long-term or structural disruptions in the supply of semiconductors ~~leading to significant shortages, which:~~threatening the functioning of critical sectors.

Amendment 202 #

Proposal for a regulation
Article 18 – paragraph 1 – point a

~~(a) entail significant delays or significant negative effects on one or more important economic sectors in the Union, or~~deleted

Amendment 203 #

Proposal for a regulation
Article 18 – paragraph 1 – point b

~~(b) prevent the supply, repair and maintenance of essential products used by critical sectors.~~deleted

Amendment 204 #

Proposal for a regulation
Article 18 – paragraph 2

Amendment 205 #

Proposal for a regulation
Article 18 – paragraph 3

Amendment 206 #

Proposal for a regulation
Article 18 – paragraph 4

Amendment 207 #

Proposal for a regulation
Article 18 – paragraph 4 a (new)

Amendment 208 #

Proposal for a regulation
Article 19 – paragraph 2

Amendment 209 #

Proposal for a regulation
Article 19 – paragraph 2

Amendment 210 #

Proposal for a regulation
Article 19 – paragraph 3 – introductory part

Amendment 211 #

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 long term interest of the Union. The use of these measures shall avoid placing disproportionate administrative burden on SMEs and start-ups.

Amendment 212 #

Proposal for a regulation
Article 19 – paragraph 5

Amendment 213 #

Proposal for a regulation
Article 19 – paragraph 5

5. The Commission shall ~~regularly~~ inform the European Parliament and the Council twice a year of any measures taken in accordance with paragraph 1 and explain the reasons of its decision.

Amendment 214 #

1 a. In the event of a crisis situation, and if the information already provided by organisations and undertakings proves to be insufficient to fully assess the measures needed to be taken to mitigate the risks, then on a case-by-case basis and after consultation with the European Semiconductor Board, further information may be requested. Such information shall be treated in accordance with the basic principles and minimum standards of security for protecting information and data of this nature.

Amendment 215 #

Proposal for a regulation
Article 20 – paragraph 1 b (new)

1 b. Any data breach or unauthorised disclosure of information and data collected, shall result in a full investigation by the Commission or competent authority, and if necessary a revision of the guidelines applied to the treatment, storage and handling of the data under the requirements of this Regulation. The Commission or Member States shall ensure that appropriate action is taken. The entity or undertaking has the right to decline sharing further information until an investigation has been carried out, and a remedy has been sought.

Amendment 216 #

Proposal for a regulation
Article 20 – paragraph 1 c (new)

1 c. There shall be a single point of contact established by the Commission for such information tobe provided to reduce administrative burden in reporting measures, and to reduce the risk of data breaches and the unauthorised disclosure of business, security, and economically sensitive information.

Amendment 217 #

Proposal for a regulation
Article 20 – paragraph 2

2. The request for information shall be voluntary state its legal basis, be proportionate in terms of the granularity and volume of the data and frequency of access to the data requested, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, and set out the time limit within which the information is to be provided. ~~It shall also indicate the penalties provided for in Article 28.~~

Amendment 218 #

Proposal for a regulation
Article 20 – paragraph 2

2. The request for information shall state its legal basis, be proportionate, in particular in terms of the granularity and volume of the data and frequency of access to the data requested, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, and set out the time limit within which the information is to be provided. It shall also indicate the penalties provided for in Article 28.

Amendment 219 #

Proposal for a regulation
Article 20 – paragraph 2

Amendment 22 #

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core components of any digital device: from smartphones and cars, through ~~critical~~ applications and infrastructures ~~in health~~relating to healthcare, medicine, energy, communications and automation to most other industry sectors. ~~While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their suppl~~In the aftermath of the COVID-19 pandemic, the European Union has witnessed a shortage of semiconductors, which has led to plant closures in sectors ranging from cars to digital devices and caused an unprecedented disruption in supply at a time when semiconductors play a major role in the functioning of our modern economy and society. The current supply shortage is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notably ~~a str~~the extreme dependence of the entire semiconductor value chain ong third- countr~~y dependency in~~ies and hence on a very limited number of producers for the manufacturing and design of chips.

Amendment 220 #

Proposal for a regulation
Article 20 – paragraph 3

3. The owners of the undertakings or their representatives and, in the case of legal persons, companies or firms, or associations having no legal personality, the persons authorised to represent them by law or by their constitution ~~shall~~may supply the information requested on behalf of the undertaking or the association of undertakings concerned. Lawyers duly authorised to act may supply the information on behalf of their clients. The latter ~~shall~~may remain fully responsible if the information supplied is incomplete, incorrect or misleading.

Amendment 221 #

Proposal for a regulation
Article 20 – paragraph 4

4. Should an undertaking supply incorrect, incomplete or misleading information in response to a request made pursuant to this Article, or not supply the information within the prescribed time limit, it shall be subject to fines set in accordance with Article 28.deleted

Amendment 222 #

Proposal for a regulation
Article 20 – paragraph 5 a (new)

5 a. Any mandatory request for information from companies in crisis situations must be limited to an absolute minimum. Business secrets must be protected by all means and at all costs. Bureaucratic burden for companies must be limited to the absolute minimum.

Amendment 223 #

Proposal for a regulation
Article 21

~~[...]~~deleted

Amendment 224 #

Proposal for a regulation
Article 21 – paragraph 1

1. ~~Where necessary and proportionate~~Only with particular regard to proportionality and in exceptional crises and emergencies of the European Union as defined in Art. 18 and in order to ensure the ~~opera~~functioning of all or certain critical sectors, the Commission may, at last resort, oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of crisis-relevant products (‘priority rated order’). The obligation shall take precedence over any performance obligation under private or public law.

Amendment 225 #

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 shall inform the Commission. Should that obligation significantly impact the operation of certain critical sectors, the Commission may oblige that undertaking where necessary and proportionate, to accept and prioritise orders of crisis relevant products in line with paragraph 4, 5 and 6; if the Union is also in a crisis situation.

Amendment 226 #

Proposal for a regulation
Article 21 – paragraph 4

4. The obligations under paragraph 1, 2 and 3 shall be enacted by the Commission via decision. The decision shall be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case, including the principles of necessity and proportionality. The decision shall in particular have regard for the legitimate aims of the undertaking concerned and the cost and effort required for any change in production sequence. In its decision, the Commission shall state the legal basis of the priority rated order, fix the time-limit within which the order is to be performed, ~~and, where applicable,~~ specify the product and quantity, and, where applicable, state the penalties provided for in Article 28 for non- compliance with the obligation. The priority rated order shall be placed at ~~fair and reasonable pric~~a reasonable price, that accounts for the cost and efforts required for any change in the production sequence as well as the cost associated with cancellation or delaying of existing orders, based on the market conditions at that time.

Amendment 227 #

Proposal for a regulation
Article 21 – paragraph 4 a (new)

4 a. The Commission shall ensure that these extra costs can be covered from the budget allocations before the priority rated order is placed.

Amendment 228 #

Proposal for a regulation
Article 21 – paragraph 5 – point a

Amendment 229 #

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 technical grounds, including the time needed to change the production sequence, insufficient production capability or production capacity, even under preferential treatment of the order;

Amendment 23 #

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of many ~~digital~~ devices: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notablydisruptions have exposed a strong third- country dependency in manufacturing and design of chips.

Amendment 230 #

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, resulting in a loss of business or customers liable to jeopardise the short-term survival of the company.

Amendment 231 #

Proposal for a regulation
Article 21 – paragraph 6 a (new)

Amendment 232 #

Proposal for a regulation
Article 21 – paragraph 6 a (new)

6 a. The Commission shall make financial and legal provisions for the case that an undertaking is sued for breach of contract outside the jurisdiction of the Union as a result of the priority rated order.

Amendment 233 #

Proposal for a regulation
Article 22 – paragraph 1

Amendment 234 #

Proposal for a regulation
Article 22 – paragraph 2

Amendment 235 #

Proposal for a regulation
Article 22 – paragraph 2

Amendment 236 #

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 for its own procurement, which shall do its utmost to enforce rules on due oversight. The Commission may have the ability and responsibility, on behalf of all participating Member States, to enter into contracts with economic operators, including individual producers of crisis- relevant products, concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result.

Amendment 237 #

Proposal for a regulation
Article 22 – paragraph 5

Amendment 238 #

Proposal for a regulation
Article 22 – paragraph 6

6. The Commission shall carry out the procurement procedures ~~and~~in accordance with the principle of equal treatment between tenderers. It shall conclude the contracts with economic operators oin ~~behalf of~~coordination with the participating Member States and on their behalf. The Commission shall invite the participating Member States to appoint representatives to take part in ~~the preparation of the~~ procurement procedures. The deployment and use of the purchased products shall remain the responsibility of the participating Member States.

Amendment 239 #

Proposal for a regulation
Article 24 – paragraph 1

1. The European Semiconductor Board shall be composed of representatives of the Member States and a representative from the European Parliament, and shall be chaired by a representative of the Commission.

Amendment 24 #

Proposal for a regulation
Recital 1

Amendment 240 #

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 interests of the semiconductor industry, including the Industrial Alliance on Processors and Semiconductor Technologies, the social partners, civil society organisations and users of semiconductors at Union level, to such sub-groups in the capacity of observers. A sub-group including Union Research and Technology Organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the European Semiconductor Board.

Amendment 241 #

Proposal for a regulation
Article 25 – paragraph 4

4. The Commission may appoint 4. observers to take part in the meetings, as appropriate. The Commission may invite experts with specific expertise, including from relevant stakeholder organisations, with respect to a subject matter on the agenda to take part in the meetings of the European Semiconductor Board on an ad hoc basis. The Commission may facilitate exchanges between the European Semiconductor Board and other Union bodies, offices, agencies and advisory groups. ~~The Commission shall invite a representative from the European Parliament as an observer to the European Semiconductor Board.~~ The Commission shall ensure the participation of relevant other Union institutions and bodies as observers to the European Semiconductor Board with respect to meetings concerning Chapter IV on monitoring and crisis response. Observers and experts shall not have voting rights and shall not participate in the formulation of opinions, recommendations or advice of the European Semiconductor Board and its sub-groups.

Amendment 242 #

Proposal for a regulation
Article 25 – paragraph 5

Amendment 243 #

Proposal for a regulation
Article 26 – paragraph 4

Amendment 244 #

Proposal for a regulation
Article 26 – paragraph 6

Amendment 245 #

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 respect the confidentiality of information and data obtained in carrying out their tasks and activities in such a manner as to protect in particular intellectual property rights and sensitive business, economic and security related information or trade secrets. This obligation shall apply to all representatives of Member States, observers, experts and other participants attending meetings of the European Semiconductor Board pursuant to Article 23 and the members of the Committee pursuant to Article 33(1).

Amendment 246 #

Proposal for a regulation
Article 27 – paragraph 2

Amendment 247 #

Proposal for a regulation
Article 27 – paragraph 3

3. The Commission may adopt ~~implementing~~delegated acts, as necessary following experience gained in information gathering, to specify the practical arrangements for the treatment of confidential information in the context of exchange of information pursuant to this Regulation. Those ~~implementing~~delegated acts shall be adopted in accordance with the examination procedure referred to in Article 33(2).

Amendment 248 #

Proposal for a regulation
Article 27 – paragraph 3 a (new)

3 a. Where necessary and proportionate the information and data provided by organisations, entities and undertakings shall be handled in accordance with the rules for protecting EU classified information under Commission Decision (EU, Euratom) 2015/4441a and/or national rules.

Amendment 249 #

Proposal for a regulation
Article 27 a (new)

Amendment 25 #

Proposal for a regulation
Recital 1

(1) Semiconductors are at the core of any digital device: from smartphones ~~and cars, through~~to critical applications and infrastructures in health, energy, communications and automation ~~to most other industry sector~~, including cars and a large number of industrial goods. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong third-country dependency in manufacturing and design of chips.

Amendment 250 #

Kosma ZŁOTOWSKI

Proposal for a regulation
Article 28

Amendment 251 #

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 300 000 EUR.~~deleted

Amendment 252 #

Proposal for a regulation
Article 28 – paragraph 3

Amendment 253 #

Proposal for a regulation
Article 29

Amendment 254 #

Proposal for a regulation
Article 30

Amendment 255 #

Proposal for a regulation
Article 31

Amendment 256 #

Proposal for a regulation
Article 31 – paragraph 4

4. The rights of defence of the undertaking or representative organisations of undertakings concerned shall be fully respected in any proceedings. The undertaking or representative organisations of undertakings concerned shall be entitled to have access to the Commission's file under the terms of a negotiated disclosure, subject to the legitimate interest of undertakings in the protection of their business secrets. The right of access to the file shall not extend to confidential information and internal documents of the Commission or the authorities of the Member States. In particular, the right of access shall not extend to correspondence between the Commission and the authorities of the Member States, unless authorised by the right of access to EU documents. Nothing in this paragraph shall prevent the Commission from disclosing and using information necessary to prove an infringement.

Amendment 257 #

Proposal for a regulation
Article 35 – paragraph 1 a (new)

1 a. The report shall quantify the impacts, it may consider the Total Net Present Social Value and Business Net Present Value. The report shall cover at least the following areas: (a) analysis of impacts on the foreign direct investments in the Union, including the analysis of countries structure and trends; (b) ex-ante and ex-post analysis of impact of this Regulation on the consumer welfare, including short-term and long term impacts; (c) ex-post and ex-ante cost-benefit analysis of this Regulation;Quantifiable measurable indicators that would confirm that the proposed regulation brings more benefit than costs; (d) ex-post review of the objetives stated in this Regulation, analysis of the deviations; (e) analysis of the subsudies measures in third countries, if applicable their impact on the consumer and internal market; (f) analysis of past semiconductor significant shortages and impacts of market or regulatory interventions leading to market balance.Analysis of market flexibility and market bariers in the semiconductor supply chain. (g) analysis of results and added value of investments under this Regulation

Amendment 258 #

Proposal for a regulation
Article 36 – paragraph 2 a (new)

This regulation shall expire by 31 December 2029.

Amendment 26 #

Proposal for a regulation
Recital 1 a (new)

(1a) Semiconductors are of real importance because they form the basis of modern electronics and are component parts of devices such as: cars, radios, telephones, computers, household appliances, medical devices and devices for the defence industry.

Amendment 27 #

Proposal for a regulation
Recital 2

(2) A framework for increasing the Union’s resilience and potential in the field of semiconductor technologies should be established, stimulating investment, strengthening the capabilities of the Union’s semiconductor supply chain, developing research and innovation and increasing cooperation among the Member States and the Commission.

Amendment 28 #

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, security, adaptability and resilience of the Union’s semiconductor supply chain, and increasing cooperation among the Member States and the Commission and international partners.

Amendment 29 #

Proposal for a regulation
Recital 2

(2) A framework for increasing the Union’s resilience in the field of semiconductor technologies and their design should be established, stimulating investment, strengthening the capabilities of the Union’s semiconductor supply chain, and increasing cooperation among the Member States and the Commission.

Amendment 30 #

Proposal for a regulation
Recital 3

Amendment 31 #

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience, reliability, and security of supply in the field of semiconductor technologies. (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)

Amendment 32 #

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 on the Functioning of the European Union. These measures do not entail the harmonisation of national laws and regulations. In this regard, the Union should reinforce 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 produc~~, produce, package, reuse, and recycle 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, serving key industrial sectors and creating new markets.

Amendment 33 #

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 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 on a long-term basis. 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, serving key industrial sectors and creating new markets.

Amendment 34 #

Proposal for a regulation
Recital 5

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning of the internal market. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain. Given the lack of the impact assessment accompanying the Commission proposal and proposed untested method of subsidizing production, the Commission should regularly and carefully publish and deliver relevant information and assessments about the impact of this regulation on internal market, competitiveness and the EU and national budgets.

Amendment 35 #

Proposal for a regulation
Recital 5

(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient development and supply is essential for the functioning of the internal market. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain.

Amendment 36 #

Proposal for a regulation
Recital 6

(6) The achievement of these objectives will be supported by a governance mechanism. At Union level, this Regulation establishes a European Semiconductor Board, composed of representatives of the Member States, the European Parliament and chaired by the Commission. The composition of the European Semiconductor Board ~~will~~should be gender balanced. The European Semiconductor Board, granting stakeholders the possibility to become official observers and to provide expert input, will approve the methodology for the mapping of the semiconductor value and supply chain, provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and exchanging information on issues relating to this Regulation. The European Semiconductor Board should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high-level representatives and the Commission may establish subgroups, ensuring access to members and observers of the European Semiconductor Board .

Amendment 37 #

Proposal for a regulation
Recital 6

(6) The achievement of these objectives will be supported by a governance mechanism. At Union level, this Regulation establishes a European Semiconductor Board, composed of representatives of the Member States and chaired by the Commission. The European Semiconductor Board will provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and exchanging information on issues relating to this Regulation. The European Semiconductor Board should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high-level representatives, selected in such a way as to avoid any conflict of interest, and the Commission may establish subgroups.

Amendment 38 #

Proposal for a regulation
Recital 7

(7) Given the globalised nature of the semiconductor supply chain, international cooperation with third countries is an important element to achieve a resilience of the Union’s semiconductor ecosystem. Semiconductor production should therefore be counted as part of EU core strategic infrastructure. The actions taken under this Regulation should also enable the Union to play a stronger role, as a centre of excellence, in a better functioning global, interdependent semiconductors ecosystem. The Commission, assisted by the European Semiconductor Board, should cooperate and build partnerships with third countries with a view to seeking solutions to address, to the extent possible, disruptions of the semiconductor supply chain. Given the strategic nature of the semiconductor infrastructure, all investments from third-countries should be subject to scrutiny to avoid losing control to authoritarian or unfriendly foreign governments or their proxies.

Amendment 39 #

Proposal for a regulation
Recital 7

Amendment 40 #

Proposal for a regulation
Recital 7

Amendment 41 #

Proposal for a regulation
Recital 8

(8) The semiconductor sector is characterised by very high development and innovation costs and very high costs for building state of the art testing and experimentation facilities to support the industrial production. This has direct impact on the competitiveness and innovation capacity of the Union industry, as well as on the security and resilience of the supply. In light of the lessons learnt from recent shortages in the Union and worldwide, and the rapid evolution of technologyical challenges and innovation cycles affecting the semiconductor value chain, it is necessary to strengthen the Union’s competitiveness, resilience and innovation capacity by setting up the Initiative.

Amendment 42 #

Proposal for a regulation
Recital 9

Amendment 43 #

Proposal for a regulation
Recital 11

(11) In order to equip the Union with the semiconductor technology research and innovation capacities needed to maintain its research and industrial investments at a leading edge, develop fresh research and innovation capacity in this sector and bridge the current gap between research and development and manufacturing, the Union and its Member States should better coordinate their efforts and co-invest. To achieve this, the Union and Member States, should take into consideration the twin digital and green transition goals. The Initiative throughout all components and actions, to the extent possible, should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient, effective, clean and durable use of resources, including energy and materials necessary for production and the whole lifecycle use of semiconductors.

Amendment 44 #

Proposal for a regulation
Recital 11

(11) In order to equip the Union with the semiconductor technology research and innovation capacities needed to maintain its research and industrial investments at a leading edge, and bridge the current gap between research and development and manufacturing, the Union and its Member States should better coordinate their efforts and co-invest~~. To achieve this, the Union and Member States, should take into consideration the twin digital and green~~, and should align all investments with the goals of the twin green and digital transition goals. The Initiative throughout all components and actions, to the extent possible, should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient, effective, clean and durable use of resources, including energy and materials necessary for production and the whole lifecycle use of semiconductors.

Amendment 45 #

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 pre~~ducing environmental impacts as much as possible~~venting and remedying negative environmental impacts, especially reducing to a minimum the use of water, energy, toxic chemicals and heavy metals, and increasing refurbishing and recycling. 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 to the development of the semiconductors sector, the Initiative should support actions including on designing libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis ~~and on market terms (or cost plus reasonable margin basis)~~ for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross- fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

Amendment 46 #

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 to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs can benefit from preferential access orand reduced prices. Such access, including for international research and commercial partners, can lead to broader cross-fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

Amendment 47 #

Proposal for a regulation
Recital 12 a (new)

(12 a) The Commission should provide clear guidelines in the form of a specific Chips Fund Work Programme. It should include guidance on admissibility and eligibility, clear deadlines, the criteria for financial operational capacity and exclusion, information on mandatory documents to be provided, while respecting Art. 27, and guidance on preparing the applications. Information on the structure, budget and political priorities of the Chips Fund should also be included. The Commission should also provide guidance on procedures to register and submit applications online via a specific and dedicated EU Chips Fund Portal.

Amendment 48 #

(12 b) The Commission should provide clear and readily available guidelines on the terms and conditions for the development of, and third party access to, pilot lines, as well as the compatibility and accessibility of the Union virtual design platforms.

Amendment 49 #

Proposal for a regulation
Recital 12 c (new)

(12 c) Given the importance of collaboration with third parties in the area of R&D&I, the European Semiconductor Board and the Commission should establish clear and readily available guidelines on access modes, software and hardware for their participation in projects within the scope of this Regulation. Within the structures of the European Semiconductor Board, the EU-US Trade and Technology Council and other Union agreements and strategies with third countries,guidance should be provided to overcome existing obstacles to international cooperation in the field of R&D&I.

Amendment 50 #

Jana TOOM, Karen MELCHIOR

Proposal for a regulation
Recital 13

(13) In order to overcome the limitations of the current fragmented public and private investments efforts, facilitate integration, cross-fertilisation, and return on investment on the ongoing programmes and to pursue a common strategic Union vision on semiconductors as a means to realising the ambition of the Union and of its Member States to ensure a leading role in the digital economy, the Chips for Europe Initiative should facilitate better coordination and closer synergies between the existing funding programmes at Union and national levels, better coordination and collaboration with industry and key private sector stakeholders and additional joint investments with Member States~~. The implementation set up of t~~, and encourage the collaborative development and sharing of technology under free and open source licences, and following open access and open science principles, in particular in public procurement and where funding comes from Union and national public sources, to secure the longevity, sustainability, and reusability of such programmes and their outcomes. The Initiative is built to pool resources from the Union, Member States and third countries associated with the existing Union Programmes, as well as the private sector. The success of the Initiative can therefore only be ~~built~~measured on a collective effort by Member States, with the Union, to support both the significant capital costs and the wide availability of virtual design, testing and piloting resources and diffusion of knowledge, skills and competences. Where appropriate, in view of the specificities of the actions concerned, the objectives of the Initiative, specifically the ‘Chips Fund’ activities, should also be supported through a blending facility under the InvestEU Fund.

Amendment 51 #

Proposal for a regulation
Recital 13

(13) In order to overcome the limitations of the current fragmented public and private investments efforts, facilitate integration, cross-fertilisation, and return on investment on the ongoing programmes and to pursue a common strategic Union vision on semiconductors as a means to realising the ambition of the Union and of its Member States to ensure a leading role in the digital economy, the Chips for Europe Initiative should facilitate better coordination and closer synergies between the existing funding programmes at Union and national levels, better coordination and collaboration with industry and key private sector stakeholders and additional joint investments with Member States as well encourage the collaborative development and sharing of technology under free and open source licences and follow the principles of open access and open science, in particular in public procurement and in cases of public funding, to secure the longevity, sustainability, and reusability of such programmes and its outcomes. The implementation set up of the Initiative is built to pool resources from the Union, Member States and third countries associated with the existing Union Programmes, as well as the private sector. The success of the Initiative can therefore only be built on a collective effort by Member States, with the Union, to support both the significant capital costs and the wide availability of virtual design, testing and piloting resources and diffusion of knowledge, skills and competences. Where appropriate, in view of the specificities of the actions concerned, the objectives of the Initiative, specifically the ‘Chips Fund’ activities, should also be supported through a blending facility under the InvestEU Fund.

Amendment 52 #

Proposal for a regulation
Recital 14

(14) ~~Support from the Initiative~~Extended programmes and actions for semiconductor research and innovation, such as 'Digital Europe' and 'Horizon Europe', and support provided should be used to address and manage market failures or sub- optimal investment situations in a proportionate manner, and actions should not duplicate or crowd out private financing or ~~distor~~affect competition in the internal market. Actions should have a clear added value for the Union.

Amendment 53 #

Proposal for a regulation
Recital 14

(14) Support from the Initiative should be used to address market failures or sub- optimal investment situations in a proportionate, sustainable manner, and actions should not duplicate or crowd out private financing or distort competition in the internal market. Actions should have a clear added value for the Union.

Amendment 54 #

Proposal for a regulation
Recital 14

(14) Support from the Initiative should be used to address market failures or sub- optimal investment situations in a proportionate manner, and actions should not duplicate ~~or crowd out~~ private financing ~~or distort competition in the internal market~~. Actions should have a clear and proven added value for the Union, including in social and environmental terms.

Amendment 55 #

Proposal for a regulation
Recital 15

(15) The Initiative should build upon the strong knowledge base and enhance synergies with actions currently supported by the Union and Member States through programmes and actions in research and innovation in semiconductors ~~and~~, in developments of part of the supply chain, in particular Horizon Europe and the Digital Europe programme established by Regulation (EU) 2021/694 of the European Parliament and of the Council54, and initiatives regarding free and open source software, open access and open science, including ISA2 and its successor, Interoperable Europe, with the aim by 2030, to reinforce the Union as global player in semiconductor technology and its applications, with a growing global share in chips manufacturing. Complementing those activities, the Initiative wshould closely collaborate with other relevant stakeholders, including with the Industrial Alliance on Processors and Semiconductor Technologies. _________________ 54 Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing the Digital Europe Programme and repealing Decision (EU) 2015/2240. (OJ L 166, 11.5.2021, p. 1).

Amendment 56 #

Proposal for a regulation
Recital 15 a (new)

(15a) The Initiative should also support open source code innovation, which contributes to the emergence of business models based on the use of commonly developed knowledge. The dissemination of knowledge and information through open standardisation should be considered essential to provide additional opportunities for economic development in the semiconductor sector, especially for SMEs. The use of open hardware and software reduces the barriers to the development of technological solutions for key industries such as industrial automation, healthcare or the automotive sector, thus contributing to the technological independence of the Union. In view of these benefits, the Union should strive to develop a comprehensive open-source ecosystem in the semiconductor sector.

Amendment 57 #

Jana TOOM, Karen MELCHIOR

Proposal for a regulation
Recital 15 a (new)

(15 a) The Initiative should support free and open source lincensing and development models to leverage their potential for business and collaborative development, and to create shared, sustainable and longlived innovation and technological progress. It should promote open access and open science principles to seize opportunities for businesses as well as for society, and increase the access to technology and knowledge for market actors, civil society, and individuals across the EU.

Amendment 58 #

Proposal for a regulation
Recital 15 a (new)

(15 a) The Initiative should support free and open source licensing and development models and their principles to encourage a shared, sustainable and longlived innovation and increase the access to technology and knowledge for market actors, civil society, and individuals across the EU.

Amendment 59 #

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 Rresearch and Ttechnology Oorganizations. 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~~ECIC 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 60 #

Proposal for a regulation
Recital 17 a (new)

(17 a) ‘semiconductor crisis’ means a serious disruption to the supply of semiconductors, leading to significant long-term or structural shortages of semiconductors, which poses a serious threat to the functioning of critical sectors;

Amendment 61 #

Proposal for a regulation
Recital 19

(19) Integrated Production Facilities and Open EU Foundries should provide semiconductor manufacturing capabilities that are “first-of-a-kind” in the Union and contribute to the ~~security of supply and to a resilient ecosystem in the internal market. The qualifying factor for the production of a first-of-a-kind facility could b~~reliability, security, and resilience of the supply and the ecosystem in the EU through new or retrofitted industrial facilities capable of semiconductor manufacturing or design, including front-end or back-end, or both, or capable of manufacturing materials or equipment specifically used in semiconductor manufacturing, that is not substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, ~~and~~or other product or production innovation that can offer state-of-the-art or better performance, process technology or energy and environmental performance. A facility of a comparable capability on an industrial scale should not yet substantively be present or committed to be built within the Union, excluding facilities for research and deve, increases the recyclability of semiconductors, reduces significantly and demonstrably the required production inputs such as energy, water, toxic chemicals, heavy metals and rare earths, or demonstrably enables significant energy savings in related industries and sectors and enables the deplopyment o~~r small-scale production s~~f renewable energy, storage and transmission capacities.

Amendment 62 #

Proposal for a regulation
Recital 19

Amendment 63 #

Proposal for a regulation
Recital 22

Amendment 64 #

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 Foundries should commit to continued and efficient investment into the next generations of semiconductors, research and the discovery of new technologies, including by testing and experimenting new developments through priority access to the pilot lines set up by the Chips for Europe Initiative, without prejudice to effective access by others.

Amendment 65 #

Proposal for a regulation
Recital 23

Amendment 66 #

Proposal for a regulation
Recital 24

(24) To allow for a uniform and transparent procedure to attain recognition as an Integrated Production Facility and Open EU Foundry, the recognition decision should be adopted by the Commission following the application by an individual undertaking or a consortium of several undertakings. To account for the importance of a coordinated and cooperated implementation of the planned facility, the Commission should take into account in its assessment the readiness of the Member State or Member States where the applicant intends to establish its facilities to support the set-up. Furthermore, when assessing the viability of the business plan, the Commission could take into account the overall record of the applicant, the clear and demonstrable contribution of the eligible action proposed to be implemented to the long term competitiveness of the EU semiconductor industry and the objectives described in Article 4, the cost- effectiveness of the eligible action proposed to be implemented, the contribution to achieving the twin green and digital transition of the eligible action proposed to be implemented, the environmental impact of the eligible action proposed to be implemented and the commitment to prevent and remedy any existing and new negative impact to the environment or biodiversity, as well as the participation of SMEs and start-ups . In light of the privileges attached to recognition as an Integrated Production Facility or Open EU Foundry, the Commission should monitor whether facilities that have been granted this status continue to comply with the criteria set out in this Regulation.

Amendment 67 #

Proposal for a regulation
Recital 25

(25) In light of their importance for ensuring the security of supply and enabling a resilient semiconductor ecosystem, Integrated Production Facilities and Open EU Foundries should be considered to be in the public interest. Ensuring the security of supply of semiconductors is important also for digitalisation ~~that enables the green transition of many other sectors~~. To contribute towards security of supply of semiconductors in the Union, Member States may apply support schemes and provide for administrative support in national permit granting procedures. This is without prejudice to the competence of the Commission in the field of State aid under Article 107 and 108 of the Treaty, where relevant. Member States should support the set-up of Integrated Production Facilities and Open EU Foundries in accordance with Union law.

Amendment 68 #

Proposal for a regulation
Recital 26

(26) It is necessary that Integrated Production Facilities and Open EU Foundries are set-up as quickly as possible, while keeping the administrative burden to a minimum. For that reason, Member States should treat applications related to the planning, construction and operation of Integrated Production Facilities and Open EU Foundries in the most rapid manner possible. They should appoint an authority which will facilitate and coordinate the permit granting processes and appoint a coordinator, serving as a single point of contact for the project. Moreover, where necessary for granting a derogation under Council Directive 92/43/EEC56 and Directive 2000/60/EC of the European Parliament and Council57 , the establishment and operation of these facilities, which shall not prevent the necessary conducting of a climate and environmental impact assessment for every new or retrofitted facility. Extreme weather events, such as the droughts experienced in many ~~be considered as being of overriding public interest~~EU member states in Summer of 2022 together within the ~~meaning of the aforementioned legal texts, provided that the remaining other conditions set out in~~significant quantities of water and energy necessary for these provisions are fulfilled. _________________ 56 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora. 57 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policyduction of semiconductors highlight the importance of such climate and environmental impact assessments.

Amendment 69 #

Proposal for a regulation
Recital 26

(26) It is necessary that Integrated Production Facilities and Open EU Foundries are set-up as quickly as possible, while keeping the administrative burden to a minimum. For that reason, Member States should treat applications related to the planning, construction and operation of Integrated Production Facilities and Open EU Foundries in the most rapid manner possible. They shcould appoint an authority which will facilitate and coordinate the permit granting processes and appoint a coordinator, serving as a single point of contact for the project. Moreover, where necessary for granting a derogation under Council Directive 92/43/EEC56 and Directive 2000/60/EC of the European Parliament and Council57 , the establishment and operation of these facilities may be considered as being of overriding public interest within the meaning of the aforementioned legal texts, provided that the remaining other conditions set out in these provisions are fulfilled. _________________ 56 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora. 57 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy.

Amendment 70 #

Proposal for a regulation
Recital 27

Amendment 71 #

Proposal for a regulation
Recital 27

(27) The internal market would greatly benefit from common standards for green, trusted and secure chips and a level playing field in this area. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. To that end, the Union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact, while ensuring a transition period sufficient to allow businesses to adapt accordingly.

Amendment 72 #

Proposal for a regulation
Recital 27

(27) The internal market would greatly benefit from common standards and interoperability for green, trusted and secure chips. Future ~~smart~~ devices, systems, networks and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. To that end, the Union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact. Free and open source licensing, hard- and software development, open access and open science principles can contribute positively to these goals.

Amendment 73 #

Proposal for a regulation
Recital 27

Amendment 74 #

Proposal for a regulation
Recital 27 a (new)

(27 a) Free and open source licences allow users to run, copy, distribute, study, challenge and improve software and related documents freely. Both the EU Member States and the European Commission are promoting the use and development of free and open source solutions, and relying on open standards when building ICT systems, including through previous and current EU programmes for interoperability and standardisation such as ISA2 and Interoperable Europe.

Amendment 75 #

Proposal for a regulation
Recital 27 b (new)

(27 b) Research and development have to adhere to high standards of verifiability, falsifiability and reproducibility. Adherence to these principles increases the security, reliability, and resilience of research and development of European semiconductors and their supply chain. Free and open source licensing and the underlying principles fulfil these high standards and contribute to scientific research, education, and overall capacity building. Free and open source licensing enables the collaborative development and interoperability of soft and hardware.

Amendment 76 #

Proposal for a regulation
Recital 27 c (new)

(27 c) Semiconductor research and development should adhere to the principle “Security by design” established in the Commission Joint Communication “Resilience, Deterrence and Defence: Building strong cybersecurity for the EU” of 13 September 2017.

Amendment 77 #

Proposal for a regulation
Recital 28

Amendment 78 #

Proposal for a regulation
Recital 31

(31) Any relevant findings, including information, inter alia provided by relevant stakeholders and industry associations, should be provided to the European Semiconductor Board to allow for a regular exchange of information between ~~high- level~~the appointed representatives ~~of Member State~~and official observers and for integration of the information into a monitoring overview of the semiconductor value chains.

Amendment 79 #

Proposal for a regulation
Recital 31 a (new)

Amendment 80 #

Proposal for a regulation
Recital 32

(32) It is important to take into account the specific insights into the supply situation of users of semiconductors. Therefore, Member States should identify and regularly exchange with the main user categories on their national markets. Furthermore, Member States should offer the possibility for relevant stakeholder organisations, including industry associations and representatives of the main user categories, to provide information regarding significant changes in demand and supply, and known disruptions of their supply chain, this could include the unavailability of critical semiconductors or raw materials, longer than average lead-time, delays in delivery and exceptional price surges, with the exception of information which, by its very nature, could undermine internal market competitiveness.

Amendment 81 #

Proposal for a regulation
Recital 32 a (new)

(32 a) In order to ensure a coordinated and holistic monitoring mechanism, the European Semiconductor Board should seek to consider the objectives of the EU Critical Raw Materials Initiative as part of its supply chain monitoring, including coordination on this issue through the European Semiconductor Board. Such monitoring should also include assessment of the impact of any relocation of raw materials and component suppliers outside of the Union, in the context of the Regulation (EC)No 1907/2006 of the European Parliament and of the Council.

Amendment 82 #

Proposal for a regulation
Recital 32 b (new)

Amendment 83 #

Proposal for a regulation
Recital 33

(33) In order to carry out these monitoring activities, the competent authorities of Member States may need certain information, which may not be publicly accessible, such as information on the role of an individual undertaking along the semiconductor value chain. In those limited circumstances in which it is necessary and proportionate for the purpose of carrying out the monitoring activities, the competent authorities of Member States should be able to request this information from the undertaking in question. The responsibility to respect human rights, social rights, human health and the environment should apply to all manufacturing operations and other related business relationships of an economic operator throughout the semiconductor value chain. Therefore, in view of the expected exponential growth in semiconductor demand in the EU and the fact that the extraction, processing and trading of certain raw materials, chemicals and secondary raw materials that are used in the semiconductor manufacturing and occur in waste semiconductor treatment, carry particular risks, certain requirements for the semiconductor value chain due diligence process should be laid down, with the objective to address those risks, in accordance with internationally recognised due diligence standards and with EU law.

Amendment 84 #

Proposal for a regulation
Recital 33

Amendment 85 #

Proposal for a regulation
Recital 34

(34) Member States should alert the Commission if relevant factors indicate a potential semiconductor crisis. In order to ensure a coordinated response to address such crises, the Commission should upon the alert by a Member State or through other sources, ~~including~~such as information from international partners, convene a~~n extraordinary~~ meeting of the European Semiconductor Board for assessing the need to activate the crisis stage and for discussing whether it may be appropriate, necessary and proportionate for Member States to carry out coordinated joint procurement. The Commission should engage in consultations and cooperation with relevant third countries with a view to addressing any disruptions in the ~~international~~ supply chain, in compliance with international obligations and without prejudice to procedural requirements under the Treaty on international agreements.

Amendment 86 #

Proposal for a regulation
Recital 35

(35) As part of the monitoring, national competent authorities should also do a mapping of undertakings operating in the Union along the semiconductor supply chain established in their national territory and ~~notify this information to the Commission.~~ provide the Commission with this information. Robust conformity assessment procedures are needed to ensure that there is conformity with sustainable requirements and value chain due diligence obligations set out in EU law and in this Regulation in particular.

Amendment 87 #

Proposal for a regulation
Recital 35

Amendment 88 #

Proposal for a regulation
Recital 35

Amendment 89 #

Proposal for a regulation
Recital 36

(36) In order to facilitate effective monitoring, the Commission should provide an in-depth assessment of the risks associated with different stages of the semiconductor value chain ~~is needed~~, including on the origins and sources of supplies beyond the Union. Such risks may be related to critical inputs and equipment for the industry, including ~~digital~~ products that may be vulnerable, possible impact of counterfeit or underperforming semiconductors, manufacturing capacities and other risks that may disrupt, compromise or negatively affect the supply chain. Those risks could include supply chains with a single point of failure or which are otherwise highly concentrated. Other relevant factors could include the availability of substitutes or alternative sources for critical inputs and resilient and sustainable transport. The Commission should, assisted by the European Semiconductor Board and taking also into account information received from the main user categories, develop a Union level risk assessment. Special attention should be given to ensuring that the monitoring requirements of this Regulation relating to the production process of semiconductors are robust. Compliance with the carbon footprint declaration, recycled content, as well as human rights and semiconductor value chain due diligence obligations laid down in this Regulation should be therefore fully ensured.

Amendment 90 #

Proposal for a regulation
Recital 36

Amendment 91 #

Proposal for a regulation
Recital 37

(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, assisted by the European Semiconductor Board, identify and establish early warning indicators in the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, de-localisations or acquisitions of key market actors. Member States should monitor these early warning indicators. Industry stakeholders should be encouraged to do the same. The European Semiconductor Board and the Commission should establish mechanisms to provide guidance to industry on monitoring and reporting, in particular for start-ups and SMEs

Amendment 92 #

Proposal for a regulation
Recital 37

(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, assisted by the European Semiconductor Board, identify early warning indicators in the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human ~~capital~~resources needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. Member States should monitor these early warning indicators.

Amendment 93 #

Proposal for a regulation
Recital 37 a (new)

(37 a) With regard to increasing the capacity, capability, and availability of human resources in the field, the demand for skilled workers can only be fulfilled if efforts are made to achieve a balanced representation of genders, ethnic diversity, and non-discrimination against disabled persons in the sector and their training and education.

Amendment 94 #

Proposal for a regulation
Recital 39 a (new)

Amendment 95 #

Proposal for a regulation
Recital 40

(40) As part of the monitoring, Member States cshould specifically consider the availability and integrity of the services and goods of key markets actors. Such issues cshould be brought to the attention of the European Semiconductor Board and the Commission by the Member State concerned.

Amendment 96 #

Proposal for a regulation
Recital 42

(42) The semiconductor crisis stage should be triggered in the presence of concrete, serious, and reliable evidence of such a crisis. A semiconductor crisis occurs in case of serious disruptions to the ~~supply of~~ semiconductors ~~leading to significant shortages which entail significant~~supply chain, including intermediate products or raw and processed materials, at any link of the semiconductor value chain, and demonstrably leading to significant shortages or delays and negative effects on one or more important economic sectors in the Union, either directly or through ripple effects of the shortage, given that the Union’s industrial sectors represent a strong user base of semiconductors. Alternatively or in addition, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which prevent the supply, repair and maintenance of essential products used by critical sector or when serious disruptions lead to significant shortages which prevent the supply, repair and maintenance of essential products of the semiconductor supply chain itself or the normal functioning of critical sectors in providing essential goods and services to EU citizens, for instance medical and diagnostic equipment.

Amendment 97 #

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~~delegated acts and for a predetermined duration period, taking into account the opinion of the European Semiconductor Board. The Commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period, should such a necessity be ascertained, taking into account the opinion of the European Semiconductor Board.

Amendment 98 #

Proposal for a regulation
Recital 44

Amendment 99 #

Proposal for a regulation
Recital 45

(45) Appropriate, effective and proportionate measures should be identified and implemented when the crisis stage is activated without prejudice to possible continued international engagement with relevant partners with the view to mitigating the evolving crisis situation. Where appropriate, the Commission should request information from undertakings along the semiconductor supply chain, with the exception of that relating to trade secrets, the disclosure of which might disrupt internal market competition. Furthermore, the Commission should be able to, where necessary and proportionate, oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of the production of crisis-relevant products, and to act as a central purchasing body when mandated by Member States. The Commission could limit the measures to certain critical sectors in a proportionate manner, while maintaining a competitive market balance. In addition, the European Semiconductor Board may advise on the necessity of introducing an export control regime pursuant to Regulation (EU) 2015/479 of the European Parliament and of the Council60. The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures should be proportionate and restricted to what is necessary to address the significant disturbances at stake insofar as this is in the best interest of the Union. The Commission should regularly inform the European Parliament and the Council of the measures taken and the underlying reasons. The Commission may, after consulting with the Board, issue further guidance on the implementation and use of the emergency measures. _________________ 60 Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34).

source: 738.431

2022/11/07 BUDG 43 amendments...

Amendment 10 #

Mauri PEKKARINEN, Nils TORVALDS, Olivier CHASTEL, Moritz KÖRNER

Proposal for a regulation
Recital 9 a (new)

(9 a) In order to counter the emerging territorial distortion triggered by imbalances in economic means for investments in the semiconductor ecosystem between Member States and to enable the further development and regional diffusion of the semiconductor ecosystem also in smaller Member States, an instrument should be established to create a financial balancing mechanism.

Amendment 11 #

Proposal for a regulation
Recital 10

(10) The Horizon Europe Framework programme established by Regulation (EU) 2021/695 of the European Parliament and of the Council51 (Horizon Europe) – the Framework Programme for Research and Innovation, has the objective to strengthen the European research area (ERA), encouraging it to become more competitive, including in its industry, while promoting all research and innovation (R&I) activities to deliver on the Union's strategic priorities and commitments, which ultimately aim to promote peace, the Union's values and the well-being of its peoples. As a major priority of the Union, the total financial resources allocated to the programme should not be reduced and the reduction of the financial resources of the programme, aimed to reinforce the financial envelope of the Digital Europe programme with the aim of contributing to the Chips initiative, should be fully compensated by another source. Consequently, without prejudice to the institutional prerogatives of the European Parliament and of the Council, an amount of commitment appropriations equivalent to the reduction should be made available to Horizon Europe over the period 2023- 2027, resulting from total or partial non- implementation of projects belonging to that programme or its predecessor, as provided for in Article 15(3) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council52 (the Financial Regulation). This amount will be in addition to the EUR 0.5 billion (in 2018 prices) already mentioned in the Joint Declaration by the European Parliament, the Council and the Commission on the re- use of decommitted funds in relation to the research programme. _________________ 51 Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013. (OJ L 170, 12.5.2021, p. 1). 52 Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

Amendment 12 #

Proposal for a regulation
Recital 11

(11) In order to equip the Union with the semiconductor technology research and innovation capacities needed to maintain its research and industrial investments at a leading edge, and bridge the current gap between research and development and manufacturing, the Union and its Member States should better coordinate their efforts and co-invest, while aiming to boost the research capacities of Member States that do not have the ability to benefit from the industrial manufacturing of chips and their components, so that Member States can equally benefit from such long-term investments. To achieve this, the Union and Member States, should take into consideration the twin digital and green transition goals. The Initiative throughout all components and actions, to the extent possible, should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient, effective, clean and durable use of resources, including energy and materials necessary for production and the whole lifecycle use of semiconductors.

Amendment 13 #

Proposal for a regulation
Recital 11

(11) In order to equip the Union with the semiconductor technology research and innovation capacities needed to maintain its research and industrial investments at a leading edge, and bridge the current gap between research and development and manufacturing, the Union and its Member States should better coordinate their efforts and co-invest. To achieve this, the Union and Member States, should take into consideration the ~~twin digital and green~~green and digital transition goals. The Initiative throughout all components and actions~~, to the extent possible,~~ should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient, effective, clean and durable use of resources, including energy and materials necessary for production and the whole lifecycle use of semiconductors. In this regard the Union should invest in infrastructure for the chips that are most useful and widespread, with demand outlets in Europe (around 20nm) and in chips where it has unique expertise to remain the leader in this market segment.

Amendment 14 #

Proposal for a regulation
Recital 11 a (new)

(11 a) In order to achieve a circular economy, and to make the Union more resilient in its supply chain, this Initiative should foster investment in the recycling of rare metals and materials to turn e- waste into a resource.

Amendment 15 #

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 have a broad geographic coverage and 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 to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross-fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

Amendment 16 #

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 which should be defined by the Commission within 3 months of the adoption of the Chips Act. 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 17 #

Proposal for a regulation
Recital 25

(25) In light of their importance for ensuring the security of supply and enabling a resilient semiconductor ecosystem, Integrated Production Facilities and Open EU Foundries shcould be considered to ~~be in the public~~provide services of general interest. Ensuring the security of supply of semiconductors is important also for digitalisation that enables the green transition of many other sectors. To contribute towards security of supply of semiconductors in the Union, Member States may apply support schemes and provide for administrative support in national permit granting procedures~~. This is without prejudice to the competence of the Commission in the field of State aid under Article 107 and 108 of the Treaty, where~~, to extent that such support schemes are compatible with applicable state aid reule~~vant~~s. Member States should support the set-up of Integrated Production Facilities and Open EU Foundries in accordance with Union law.

Amendment 18 #

Proposal for a regulation
Recital 26

Amendment 19 #

Proposal for a regulation
Recital 27

(27) The internal market would greatly benefit from common standards for green, trusted and secure chips. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. To that end, the Union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact. Device durability, interoperability and sustainability of underlying infrastructure are key prerequisites to ensure that efficiency gains are not cancelled out by short renewal cycles

Amendment 20 #

Proposal for a regulation
Recital 27

Amendment 21 #

Proposal for a regulation
Recital 45

(45) Appropriate, effective and proportionate measures shthat do not exceed what is necessary to rectify the immediate crisis could be identified and implemented when the crisis stage is activated without prejudice to possible continued international engagement with relevant partners with the view to mitigating the evolving crisis situation. Where appropriate, the Commission shcould request information from undertakings along the semiconductor supply chain. Furthermore, the Commission should be able to~~, where necessary and proportionate,~~ act as a central purchasing body when mandated by Member States. In extraordinary circumstances and as a last resort, the Commission may oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of the production of crisis-relevant products, ~~and to act as a central purchasing body when mandated by Member States. The Commission~~in such cases where it is necessary and proportionate to ensure the basic operation of critical sectors. Before enacting any such decision, the Commission should consult the European Semiconductor Board. Furthermore, the Commission should consult the European Semiconductor Board on the proportionality of all proposed emergency actions and could limit the measures to certain critical sectors. In addition, the European Semiconductor Board may advise on the necessity of introducing an export control regime pursuant to Regulation (EU) 2015/479 of the European Parliament and of the Council60 . The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures should be proportionate and restricted to what is necessary to address the significant disturbances at stake insofar as this is in the best interest of the Union. The Commission should regularly inform the European Parliament and the Council of the measures taken and the underlying reasons. The Commission may, after consulting with the Board, issue further guidance on the implementation and use of the emergency measures. _________________ 60 Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34).

Amendment 22 #

Proposal for a regulation
Recital 48

Amendment 23 #

Proposal for a regulation
Recital 52 a (new)

(52 a) Priority rated orders should be continually assessed by the European Semiconductor Board, with a particular view to their effects on all economic sectors and Member States. If the Board finds that enacted decisions are disproportionate or do more harm than good, they can recommend the Commission to limit the scope of, or fully discontinue, enacted decisions.

Amendment 24 #

Mauri PEKKARINEN, Nils TORVALDS, Olivier CHASTEL, Moritz KÖRNER

Proposal for a regulation
Recital 55

(55) In order to facilitate a smooth, effective and harmonised implementation of this Regulation, cooperation and the exchange of information, the European Semiconductor Board should be established. The European Semiconductor Board should provide advice to and assist the Commission on specific questions. These should include providing advice on the Chips for Europe Initiative to the Public Authorities Board of the Chips Joint Undertaking; exchanging information on the functioning of the Integrated Production Facilities and Open EU Foundries; discussing and preparing the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products and addressing coordinated monitoring and crisis response. Furthermore, the European Semiconductor Board should ensure the consistent application of this Regulation, facilitate cooperation between Member States as well as exchange of information on issues relating to this Regulation. The European Semiconductor Board should support the Commission in international cooperation in line with international obligations, including in information gathering and crisis assessment. In addition, the European Semiconductor Board should coordinate, cooperate and exchange information with other Union crisis response and crisis preparedness structures with a view to ensure a coherent and coordinated Union approach as regards crisis response and crisis preparedness measures for semiconductor crises. The European Semiconductor Board should cooperate closely with the Commission in identifying specific critical services, system and products in the semiconductor supply chain, and in accordance with Article 19 of Directive [proposal NIS 2], consult the Commission in order to carry out a coordinated security risk assessment of the semiconductor supply chain aiming to enhance the resilience of the supply chain, the integrated security of components along the supply chain, and enable the achievement of strategic objectives in establishing a secure and robust semiconductor ecosystem in the Union.

Amendment 25 #

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 and the semiconductor value chain 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 twin digital and green transition, improving the sustainability, reducing the environmental impact of next generation chips and strengthening the circular economy processes, and address security needs by enabling secure and resilient designs that defend against cybersecurity threats.

Amendment 26 #

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 twin digital and green transition by improving their sustainability and their ability to protect against cybersecurity threats by developing green and cybersecurity credentials, in line with international standards and taking into account best practices.

Amendment 27 #

Proposal for a regulation
Article 4 – paragraph 2 – point a – point 2

(2) upgrading the design capacity with ongoing innovative developments, such as processor architectures based on the open- source ~~Reduced~~ Instruction Set ~~Computer~~ Architectures (e.g. RISC-V) and architectures that are built on "security by design";

Amendment 28 #

Mauri PEKKARINEN, Nils TORVALDS, Olivier CHASTEL, Moritz KÖRNER

Proposal for a regulation
Article 4 – paragraph 2 – point b – introductory part

(b) enhancing existing and developing new advanced pilot lines, ensuring broad geographical coverage. This operational objective shall be achieved through:

Amendment 29 #

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 1

(1) strengthen skills, knowledge and capacities and offer a wide range of expertise to the stakeholders, including end-user SMEs and start-ups, facilitating access to and effective use of the above capacities and facilities;

Amendment 30 #

Mauri PEKKARINEN, Nils TORVALDS, Olivier CHASTEL, Moritz KÖRNER

Proposal for a regulation
Article 4 – paragraph 2 – point d – point 2

(2) address the skills shortage, training, 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 by enhancing collaboration between the academia and industry.

Amendment 31 #

Mauri PEKKARINEN, Nils TORVALDS, Olivier CHASTEL, Moritz KÖRNER

Proposal for a regulation
Article 4 – paragraph 2 – point e – point 3

(3) accelerating investment in the field of semiconductor manufacturing technologies and chip design and to leveraging funding from both the public and the private sectors, while increasing the security of supply and protection of intellectual property for the whole semiconductor value chain.

Amendment 32 #

Proposal for a regulation
Article 6 – paragraph 1 a (new)

1 a. The Commission shall ensure that the allocation of funding from Union programmes is geographically balanced, taking into account the spending capacity of each Member State.

Amendment 33 #

Proposal for a regulation
Article 8 – paragraph 3

3. Member States shall designate candidate competence centres in accordance with its national procedures, administrative and institutional structures through an open and competitive process. The Commission shall, by means of implementing acts, set the procedure for establishing competence centres, including selection criteria, and further tasks and functions of the centres with respect to the implementation of the actions under the Initiative, the procedure for establishing the network as well to adopt decisions on the selection of entities forming the network, taking into account the need to have the entire Union’s semiconductor value chain represented. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 33(2). The network shall avoid fragmentation of activities and duplication of efforts.

Amendment 34 #

Proposal for a regulation
Article 8 – paragraph 4

4. The network shall have substantial overall autonomy to lay down its organisation, composition and working methods. However, the organisation, composition and working methods of the network shall represent the Union’s entire semiconductor value chain, from materials to chip design, and be in accordance with and contribute to the aims and objectives of this Regulation and the Initiative.

Amendment 35 #

Proposal for a regulation
Article 13 – title

Public ~~interest and public~~ support

Amendment 36 #

Proposal for a regulation
Article 13 – paragraph 1

Amendment 37 #

Proposal for a regulation
Article 13 – paragraph 2

Amendment 38 #

Proposal for a regulation
Article 14 – paragraph 3

Amendment 39 #

Proposal for a regulation
Article 14 – paragraph 3

Amendment 40 #

Proposal for a regulation
Article 18 – paragraph 2

Amendment 41 #

Proposal for a regulation
Article 19 – paragraph 1

Amendment 42 #

Proposal for a regulation
Article 19 – paragraph 2

Amendment 43 #

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~~. Measures must be in the best interest of the Union and shall not disproportionally favour any one or group of Member States. The use of these measures shall avoid placing disproportionate administrative burden on SMEs.

Amendment 44 #

Proposal for a regulation
Article 20 – paragraph 1

Amendment 45 #

Proposal for a regulation
Article 21 – paragraph 1

1. WIn extraordinary circumstances, where necessary and proportionate to ensure the basic 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’). ~~The obligation shall take precedence over any performance obligation under private or public law.~~

Amendment 46 #

Proposal for a regulation
Article 21 – paragraph 3

Amendment 47 #

Proposal for a regulation
Article 21 – paragraph 4

4. The obligations under paragraph 1, 2 and 3 shall be enacted by the Commission via decision. Before taking such a decision, the Commission shall consult the European Semiconductor Board. The European Semiconductor Board may advise the Commission on the necessity and proportionality of the decision. The decision shall be taken in accordance with all applicable Union legal obligations, having regard to the advice of the European Semiconductor Board and circumstances of the case, including the principles of necessity and proportionality. The decision shall in particular have regard for the legitimate aims of the undertaking concerned and the cost and effort required for any change in production sequence. In its decision, the Commission shall state the legal basis of the priority rated order, fix the time-limit within which the order is to be performed, and, where applicable, specify the product and quantity, and state the penalties provided for in Article 28 for non- compliance with the obligation. The priority rated order shall be placed at fair and reasonable price.

Amendment 48 #

Proposal for a regulation
Article 21 – paragraph 4 a (new)

Amendment 49 #

Proposal for a regulation
Article 22 – paragraph 6 a (new)

6 a. A high degree of transparency shall be applied to all joint procurement activities and related purchase agreements; The European Court of Auditors shall have full access to all relevant documents and communications to provide accurate annual scrutiny of signed contracts and public investment.

Amendment 7 #

Proposal for a regulation
Recital 3

Amendment 8 #