### 21. notes that transport networks are critical enablers of trade and prosperous economies; stresses the need to better connect african rural and urban areas; ### 21. notes that transport networks are critical enablers of trade and prosperous economies; stresses the need to better connect african rural and urban areas; calls for the liberalisation of tariffs on eu spirits across more african markets , including as part of the strengthening of existing epas , to support eu spirits producers , including smes , to benefit from the strong consumer demand in africa markets.


### 24. welcomes the eu’s africa-eu green energy initiative and the eu’s continued support to the african single electricity market; stresses that access to energy must be guaranteed at an affordable price to everyone as a common good and a basic right; ### 24. welcomes the eu’s africa-eu green energy initiative and the eu’s continued support to the african single electricity market; stresses that access to energy and the future energy demand are key issues that the eu and africa should address together; notes the need to leverage the new renewable and low carbon energy potential in africa and invest in sectors with higher added value such as green steel and green hydrogen , notably by improving technology cooperation and increasing clean energy exports; points out , that technical assistance regarding energy market legislation is needed and should be provided through eu-african cooperation , as well as the development of common standards; points out that sustainable energy cooperation should be one the main features of the "global gateway initiative" with regard to africa;


### 24. welcomes the eu’s africa-eu green energy initiative and the eu’s continued support to the african single electricity market; stresses that access to energy must be guaranteed at an affordable price to everyone as a common good and a basic right; ### 24. welcomes the eu’s africa-eu green energy initiative and the eu’s continued support to the african single electricity market; stresses that access to energy and the future energy demand are key issues that the eu and africa should address together; notes the need to leverage the new renewable energy potential in africa and invest in sectors with higher added value such as green steel and green hydrogen , notably by improving technology cooperation and increasing clean energy exports; points out , that technical assistance regarding energy market legislation is needed and should be provided through eu-african cooperation , as well as the development of common standards; points out that sustainable energy cooperation should be one the main features of the "global gateway initiative" with regard to africa;


### 25. calls for reinforced cooperation on eu-au digital agendas based on the principles of democratic governance , effective regulatory mechanisms across the digital domain and global-to-local governance mechanisms for data and digital infrastructures that place people-centred development at the core; ### 25. calls for reinforced cooperation on eu-au digital agendas based on the principles of democratic governance , effective regulatory mechanisms across the digital domain and global-to-local governance mechanisms for data and digital infrastructures that enable european companies , particularly smes to take full advantage of trade opportunities; in that regards , also recommends that a digital transition goes in line with the principles of data protection;


### (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 and design of chips. ### (1) semiconductors are the core components of any digital device: from smartphones and cars , through applications and infrastructures relating to healthcare , medicine , energy , communications and automation to most other industry sectors. 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 the extreme dependence of the entire semiconductor value chain on third countries and hence on a very limited number of producers for the manufacturing and design of chips.


### (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 and design of chips. ### (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 consequences 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.


### (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. ### (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.


### (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. ### (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.


### (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. ### (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.


### (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. ### (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.


### (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. ### (27) in 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.


### (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. ### (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.


### (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. ### (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. such certification should be risk-based and should rely on international standards.


### (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 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. ### (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. the commission should , in close collaboration with the member states and the key market actors , 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.


### (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. ### (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. where relevant , such information should be treated with strict confidentiality and in accordance with an established and clear set of guidelines , in order to protect sensitive business , economic and security related information.


### (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. ### (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.


### (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. ### (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 accordingly provide the commission with regularly updated information.


### (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. ### (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 and 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.


### (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. ### (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


### (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


### (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. ### (40) as part of the monitoring , member states should 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.


### (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 , 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. ### (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 if there is a serious disruptions to the supply of semiconductors leading to 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. this could for instance entail the supply , repair and maintenance of essential products used by critical sectors , for instance medical and diagnostic equipment.


### (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 , 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. ### deleted


### (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. ### (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.


### (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


### (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. ### (44) close cooperation between the commission , 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.


### (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


### (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. ### (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.


### setting up a coordination mechanism between the member states and the commission for monitoring the supply of semiconductors and crisis response to semiconductor shortages. ### 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.


### 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


### (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; ### (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 , the automotive sector , and other activities that are relevant for public safety and security;


### (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 thereof; ### (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 and of crucial importance to remedy the semiconductor crisis;


### (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 thereof; ### (17) ‘crisis-relevant product’ means products 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;


### member states shall carry out regular monitoring of the semiconductor value chain. in particular , they shall: ### member states 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:


### member states shall carry out regular monitoring of the semiconductor value chain. in particular , they 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:


### member states shall carry out regular monitoring of the semiconductor value chain. in particular , they shall: ### 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:


### monitor early warning indicators identified pursuant to article 16; ### 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;


### member states shall provide relevant findings to the european semiconductor board in the form of regular updates. ### 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.


### member states shall provide relevant findings to the european semiconductor board in the form of regular updates. ### 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.


### 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. ### 2. the commission , assisted by national competent authorities , 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 , 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 expertise 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.


### 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. ### 2. member states 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.


### 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. ### 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.


### 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. ### 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.


### 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. ### 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 if strictly necessary and proportionate for the purpose of paragraph 1. national competent authorities in such case must pay particular attention 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.


### 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. ### 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.


### 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’). ### 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 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.


### 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’). ### 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.


### 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: ### deleted


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


### 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. ### 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.


### 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. ### 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.


### 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 . ### deleted


### 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. ### 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 possible bottlenecks or high dependencies on third country products or equipment.


### 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. ### 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.


### 2. the commission shall review the union risk assessment including the early warning indicators as necessary. ### 2. the commission shall review the union risk assessment including the early warning indicators at 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.


### 3. when monitoring the semiconductor value chain pursuant to article 15 , member states shall monitor the early warning indicators identified by the commission. ### 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.


### 1. member states shall identify key market actors along the semiconductor supply chains in their national territory , taking into account the following elements: ### 1. the commission shall , in close cooperation with the member states , identify key market actors along the semiconductor supply chains in their national territory , taking into account the following elements:


### 1. member states shall identify key market actors along the semiconductor supply chains in their national territory , taking into account the following elements: ### 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:


### the number of other union undertakings relying on the service or good provided by a market actor; ### the number of other union undertakings relying directly or indirectly on the service or good provided by a market actor;


### 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. ### 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 , dependent markets and critical sectors in particular.


### 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. ### 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.


### 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. ### 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 relevant measures taken with regard to the semiconductor supply chain within the european semiconductor board.


### 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. ### 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.


### 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. ### 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.


### 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. ### 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.


### 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. ### 1. where the crisis stage is activated and where appropriate in order to address the semiconductor crisis in the union , the commission may take the measures provided for in article 20 , 21 or 22 , or all of them , 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. ### 2. the commission shall , after consulting the european semiconductor board , clearly limit the measures provided for in articles 20 , 21and 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.


### 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; ### 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;


### 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; ### 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 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;


### 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. ### 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 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.


### 6. the commission may , after consulting the european semiconductor board , issue guidance on the implementation and the use of the emergency measures. ### 6. the commission shall , after consulting the european semiconductor board , issue guidance on the implementation and the use of the emergency measures.


### 6. the commission may , after consulting the european semiconductor board , issue guidance on the implementation and the use of the emergency measures. ### 6. the commission shall , after consulting the european semiconductor board and industry stakeholders , issue guidance on the implementation and the use of the emergency measures.


### 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’). ### 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’). common purchasing should be explicitly used to resolve supply disruptions of semiconductors during a crisis and should not be used for other purposes. the participating member states shall duly justify the intended further use of the purchased products to the commission.


### 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’). ### 1. the commission may , upon the request of 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’).


### 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’). ### 1. the commission may , in the event of a crisis situation and where necessary and proportionate , establish a mandate to act as a central purchasing body on behalf of 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. ### 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.


### 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. ### 2. the commission shall , in consultation with the european semiconductor board , assess the utility , necessity and proportionality , and value to the union , of acting as a common purchasing body. where the commission intends not to follow the request , it shall inform member states 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. ### 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.


### 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. ### 3. the commission shall draw up a proposal for a framework agreement to be signed by member states. this framework agreement shall organise in detail the common purchasing referred to in paragraph 1.


### 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. ### 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.


### 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. ### 6. the commission shall carry out the procurement procedures and conclude the contracts with economic operators on behalf of member states. the commission shall invite 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 member states.


### addressing monitoring and crisis response issues; ### monitoring and crisis response issues union and global semiconductor supply chains and crisis response issues in the eu single market;


### addressing monitoring and crisis response issues; ### deleted


### (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. 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. ### (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.


### (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. ### (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.


### (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. ### deleted


### (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. ### (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. however , the commission should identify and implement measures to assist companies whose orders could not be met on time , if at all , and which have sustained irreversible damage as a direct result.


### (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


### 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. ### 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 digital transition.


### 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. ### 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.


### 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. ### 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 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.


### 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. ### 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.


### (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. ### (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.


### (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. ### (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.


### (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 for the whole semiconductor value chain. ### (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.


### 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. those implementing acts shall be adopted in accordance with the examination procedure referred to in article 33(2). ### 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).


### 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 be in accordance with and contribute to the aims and objectives of this regulation and the initiative. ### 4. the network shall have substantial overall authority 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.


### 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. ### 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.


### 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. ### 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 must also ensure that any support is necessary , appropriate and proportionate to avoid undue competition distortions.


### 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. ### 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.


### 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. ### 3. the security of supply 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 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.


### 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. ### 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 , where necessary and proportionate and in line with the confidentiality rules provided in this regulation , 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.


### 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. ### 1. the commission may , after consulting the european semiconductor board , and if all other measures has been investigated , request representative organisations of undertakings operating along the semiconductor supply chain to 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.


### 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 obligation shall take precedence over any performance obligation under private or public law. ### 1. 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 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.


### 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 obligation shall take precedence over any performance obligation under private or public law. ### 1. 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 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.


### 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 obligation shall take precedence over any performance obligation under private or public law. ### 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 other performance obligations under private or public law.


### 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 obligation shall take precedence over any performance obligation under private or public law. ### 1. where necessary and proportionate to ensure the operation of all or certain critical sectors , the commission may 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.


### 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 to accept and prioritise orders of crisis relevant products in line with paragraph 4 , 5 and 6. ### 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.


### 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 to accept and prioritise orders of crisis relevant products in line with paragraph 4 , 5 and 6. ### 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.


### 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 to accept and prioritise orders of crisis relevant products in line with paragraph 4 , 5 and 6. ### 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 request significantly impact the operation of certain critical sectors , the commission may advise that undertaking to accept and prioritise orders of crisis relevant products in line with paragraph 4 , 5 and 6.


### 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 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. ### 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 , 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.


### (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


### (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 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. ### (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 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. exchange of best practices and activities in the field of semiconductor research and technology development should be encouraged.