Members' Research Service By / July 15, 2022

The EU chips act: Securing Europe’s supply of semiconductors [EU Legislation in Progress]

‘The birth date of the integrated circuit [a.k.a. chip] is one of the most important birth dates in the history of technology’. Prof. T. Claeson, presentation speech for the 2000 Nobel Prize in Physics.

© ty_cgi_stock / Adobe Stock

Written by Guillaume Ragonnaud (1st edition).

Semiconductors (or chips) are the engines of the digital transition. Their production relies on complex and vulnerable global supply chains. Against the backdrop of global chip shortages, of a global ‘subsidy race’ in the world’s main producing regions, and of a renewed EU industrial policy, in February 2022 the Commission presented a proposal for an EU chips act aimed at reinforcing the whole EU chips value chain. The chips act is based on a three-pillar structure: pillar 1 aims to bolster large-scale technological capacity building and innovation in the EU chips ecosystem, improving the transition ‘from lab to fab’; pillar 2 focuses on improving the EU’s security of supply, by attracting investment and enhancing production capacities in the EU; pillar 3 aims to set up a monitoring and crisis response mechanism. In the event of supply crises, the Commission would be allowed to implement three types of emergency measures (request information from companies, request companies to accept and prioritise orders of crisis-relevant products, and carry out common purchasing on behalf of Member States). The proposal is now in the hands of the co-legislators. In the European Parliament, the Committee on Industry, Research and Energy (ITRE) is responsible for the file and plans to consider its rapporteur’s draft report in autumn 2022.

Versions

Proposal for a regulation of the European parliament and of the Council on the transparency and targeting of political advertising
Committee responsible:Industry, Research and Energy (ITRE)COM(2022) 46
8.2.2022
Rapporteur:Dan Nica (S&D, Romania)2022/0032(COD)
Shadow rapporteurs:Eva Maydell (EPP, Bulgaria)
Bart Groothuis (Renew, the Netherlands)
Henrike Hahn (Greens/EFA, Germany)
Joëlle Mélin (ID, France)
Jessica Stegrud (ECR, Sweden)
Marc Botenga (The Left, Belgium)
Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Publication of draft report

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