Regulation (EU) 2023/1781 establishing a framework of measures for strengthening Europe’s semiconductor ecosystem (Chips Act)

What it is

to establish a framework of measures for strengthening the semiconductor ecosystem in the Union (Chips Act). PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: within the past year, Europe has witnessed disruptions in the supply of chips, causing shortages across multiple economic sectors and potentially serious societal consequences. Many European sectors, including automotive, energy, communication and health as well as strategic sectors such as defence, security, and space are under threat by such supply disruptions. The Committee on Industry, Research and Energy adopted the report by Dan NICA (S&D, RO) on the proposal for a regulation of the European Parliament and of the Council Establishing a framework of measures for strengthening Europe's semiconductor ecosystem (Chips Act). The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows: The proposed Regulation establishes a framework for strengthening the semiconductor sector at Union level, in particular through the following measures: - setting the criteria to recognise and to support first-of-a-kind Integrated Production Facilities, Open EU Foundries and first-of-a-kind facilities that foster the security of supply and the resilience of the semiconductor ecosystem and deployment of novel and innovative semiconductor technologies in the Union; - setting up a coordination mechanism between the Member States and the Commission, for mapping and monitoring the semiconductor value chain and, where relevant, consulting stakeholders from the semiconductor supply and value chain as well as stakeholders from critical sectors that might be affected by disruptions to the supply of semiconductors; - developing crisis prevention and response tools in the semiconductor supply chain shortages with a view to ensuring the internal market’s resilience and enabling the Union to play a stronger role at the global level. The general objective of the Initiative is to increase the competitiveness and resilience of the Union's semiconductor ecosystem by supporting technological capacity building research and innovation throughout the Union’s semiconductor supply and value chain and by enabling the development and deployment of cutting-edge and next generation semiconductor and semiconductor technologies for quantum chips and the development and innovation of established technologies. This is intended to reinforce the Union’s advanced design, systems integration and chips production capabilities, packaging, and manufacturing equipment as well as to contribute to achieving the twin digital and green transition, to improve quality employment, while strengthening the sustainability circular economy processes and addressing security needs and cybersecurity threats. - operational objective 1 : building up advanced design capacities for integrated semiconductor technologies; - operational…

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