### 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 , 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 delegated 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.


### 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 review the union risk assessment pursuant to article 15a(2f) no later than six months after the expiry of the duration of the crisis stage.


### article 19 ### deleted


### 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 according to the impact assessment pursuant to article 15a(3) and after having consulted the semiconductor board , in order to address the semiconductor crisis in the union , the commission may take the measures provided for in article 21 or article 22 , or both , under the conditions laid down therein.


### 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 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 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 , 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.


### 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 , including in particular whether the market situation corresponds to a significant shortage of an essential product pursuant to regulation 2015/479 and provide an opinion to the commission , taking into account the findings of the impact assessment pursuant to article 15a(3);


### 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 or economic activities in the union and must be in the best long term interest of the union. the use of these measures shall avoid placing disproportionate administrative burden on smes and start-ups.


### 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 or economic activities in the union , taking fully into account the findings of the impact assessment pursuant to article 15a(3); and must be in the best long term interest of the union. the use of these measures shall avoid placing disproportionate administrative burden , especially on smes and start-ups.


### 5. the commission shall regularly inform the european parliament and the council of any measures taken in accordance with paragraph 1 and explain the reasons of its decision. ### 5. the commission shall inform the european parliament and the council twice a year of any measures taken in accordance with paragraph 1 and explain the reasons of its decision.


### 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 may , after consulting the european semiconductor board , issue guidance on the implementation and the use of the emergency measures , taking fully into account the findings of the impact assessment pursuant to article 15a(3).


### 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 essential 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 , especially based on the findings of the impact assessment pursuant to article 15a(3). where the commission intends not to follow the request , it shall inform the member states concerned and the european semiconductor board and give reasons for its refusal.


### 4. procurement under this regulation shall be carried out by the commission in accordance with the rules set out in the financial regulation for its own procurement. the commission may have the ability and responsibility , on behalf of all participating member states , to enter into contracts with economic operators , including individual producers of crisis-relevant products , concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result. ### 4. procurement under this regulation shall be carried out by the commission in accordance with the rules set out in the financial regulation for its own procurement. the commission shall have the ability and responsibility , on behalf of all participating member states , to enter into contracts with economic operators , including individual producers of essential products , concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result.


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


### addressing monitoring and crisis response issues; ### providing advice in addressing monitoring and crisis response issues;


### (9) member states are primarily responsible for sustaining a strong union industrial , competitive , sustainable and innovative base. however , the nature and scale of the innovation challenge in the semiconductor sector requires action to be taken collaboratively at union level. ### (9) member states are primarily responsible for sustaining a strong union industrial , competitive , sustainable and innovative base. however , the nature and scale of the innovation challenge in the semiconductor sector requires action to be taken collaboratively across member states and at union level.


### (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 , 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 green and digital transition goals. the initiative throughout all components and actions should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient , effective , clean and durable use of resources , including energy and materials necessary for production and the whole lifecycle use of semiconductors. in this regard the union should invest in infrastructure for the chips that are most useful and widespread , with demand outlets in europe (around 20nm) and in chips where it has unique expertise to remain the leader in this market segment.


### (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 , 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 , and should align all investments with the goals of the twin green and digital transition goals the initiative throughout all components and actions , to the extent possible , should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient , effective , clean and durable use of resources , including energy and materials necessary for production and the whole lifecycle use of semiconductors.


### (12) in order to achieve its general objective , and address both the supply and demand side challenges of the current semiconductor ecosystem , the initiative should include five main components. first , to reinforce europe’s design capacity , the initiative should support actions to build a virtual platform that is available across the union. the platform should connect the communities of design houses , smes and start-ups , intellectual property and tool suppliers , with research and technology organisations to provide virtual prototype solutions based on co-development of technology. second , in order to strengthen the security and resilience of supply and reducing the union’s dependency on third country production , the initiative should support development and access to pilot lines. the pilot lines should provide for the industry a facility to test , experiment and validate semiconductor technologies and system design concepts at the higher technology readiness levels beyond level 3 but under level 8 while reducing environmental impacts as much as possible. union investments along member states investment and with the private sector in pilot lines is necessary to address the existing structural challenge and market failure where such facilities are not available in the union hindering innovation potential and global competitiveness of the union. third , in order to enable investments in alternative technologies , such as quantum technologies , conducive to the development of the semiconductors sector , the initiative should support actions including on design libraries for quantum chips , pilot lines for building quantum chips and testing and experimentation facilities for quantum components. fourth , in order to promote the use of the semiconductor technologies , to provide access to design and pilot line facilities , and to address skills gaps across the union , the initiative should support establishment of the competence centres on semiconductors in each member state. access to publicly funded infrastructure , such as pilot and testing facilities , and to the competence network , should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings , while smes can benefit from preferential access or reduced prices. such access , including for international research and commercial partners , can lead to broader cross-fertilisation and gains in know-how and excellence , while contributing to cost recovery. fifth , the commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘chips fund’) proposing both equity and debt solutions , including a blending facility under the investeu fund established by regulation (eu) 2021/523 of the european parliament and council53 , in close cooperation with the european investment bank group and together with other implementing partners such as national promotional banks and institutions. the ‘chips fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and smes as well as investments across the value chain , including for other companies in the semiconductor value chains. in this context , the european innovation council will provide further dedicated support through grants and equity investments to high risk , market creating innovators. ### (12) in order to achieve its general objective , and address both the supply and demand side challenges of the current semiconductor ecosystem , the initiative should include five main components. first , to reinforce europe’s design capacity , the initiative should support actions to build a virtual platform that is available across the union. the platform should connect the communities of design houses , smes and start-ups , intellectual property and tool suppliers , with research and technology organisations to provide virtual prototype solutions based on co-development of technology. second , in order to strengthen the security and resilience of supply and reducing the union’s dependency on third country production , the initiative should support development and access to pilot lines. the pilot lines should provide for the industry a facility to test , experiment and validate semiconductor technologies and system design concepts at the higher technology readiness levels beyond level 3 but under level 8 while preventing and remedying negative environmental impacts , especially reducing to a minimum the use of water , energy , toxic chemicals and heavy metals , and increasing refurbishing and recycling. union investments along member states investment and with the private sector in pilot lines is necessary to address the existing structural challenge and market failure where such facilities are not available in the union hindering innovation potential and global competitiveness of the union. third , in order to enable investments in alternative technologies , such as quantum technologies , conducive to the development of the semiconductors sector , the initiative should support actions including on designing libraries for quantum chips , pilot lines for building quantum chips and testing and experimentation facilities for quantum components. fourth , in order to promote the use of the semiconductor technologies , to provide access to design and pilot line facilities , and to address skills gaps across the union , the initiative should support establishment of the competence centres on semiconductors in each member state. access to publicly funded infrastructure , such as pilot and testing facilities , and to the competence network , should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis for large undertakings , while smes can benefit from preferential access or reduced prices. such access , including for international research and commercial partners , can lead to broader cross-fertilisation and gains in know-how and excellence , while contributing to cost recovery. fifth , the commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘chips fund’) proposing both equity and debt solutions , including a blending facility under the investeu fund established by regulation (eu) 2021/523 of the european parliament and council53 , in close cooperation with the european investment bank group and together with other implementing partners such as national promotional banks and institutions. the ‘chips fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and smes as well as investments across the value chain , including for other companies in the semiconductor value chains. in this context , the european innovation council will provide further dedicated support through grants and equity investments to high risk , market creating innovators.


### (16) with a view to accelerating implementation of the actions of the initiative , it is necessary to provide an option of implementing some of the initiative actions , in particular on pilot lines , through a new legal instrument , the european chips infrastructure consortium (ecic). the ecic should have legal personality. this means that when applying for the actions to be funded by the initiative , the ecic itself , and not individual entities forming the ecic , can be the applicant. the main aim of the ecic should be to encourage effective and structural collaboration between legal entities , including research and technology organizations. for this reason , the ecic has to involve the participation of at least three legal entities from three member states and be operated as a public-private sector consortium for a specific action. the setting up of ecic should not involve the actual setting up of a new union body and should not be targeted at one specific action under the initiative. it should address the gap in the union’s toolbox to combine funding from member states , the union budget and private investment for the purposes of implementing actions of the initiative. in particular , strong synergies can be attained through combined development of the different pilot lines in an ecic , pooling the union’s contribution with the collective resources of the member states and other participants. the budget of the ecic that would be made available by member states and private sector participants over its projected period of operation should respect the timeframes of the actions implemented under this initiative. the commission should not be directly a party in the consortium. ### (16) with a view to accelerating implementation of the actions of the initiative , it is necessary to provide an option of implementing some of the initiative actions , in particular on pilot lines , through a new legal instrument , the european chips infrastructure consortium (ecic). the ecic should have legal personality. this means that when applying for the actions to be funded by the initiative , the ecic itself , and not individual entities forming the ecic , can be the applicant. the main aim of the ecic should be to encourage effective and structural collaboration between legal entities , including research and technology organizations. for this reason , the ecic has to involve the participation of at least three legal entities from three member states and be operated as a public-private sector consortium for a specific action. the ecic should address the gap in the union’s toolbox to combine funding from member states , the union budget and private investment for the purposes of implementing actions of the initiative. in particular , strong synergies can be attained through combined development of the different pilot lines in an ecic , pooling the union’s contribution with the collective resources of the member states and other participants. the budget of the ecic that would be made available by member states and private sector participants over its projected period of operation should respect the timeframes of the actions implemented under this initiative. the commission should not be directly a party in the consortium.


### (26) it is necessary that integrated production facilities and open eu foundries are set-up as quickly as possible , while keeping the administrative burden to a minimum. for that reason , member states should treat applications related to the planning , construction and operation of integrated production facilities and open eu foundries in the most rapid manner possible. they should appoint an authority which will facilitate and coordinate the permit granting processes and appoint a coordinator , serving as a single point of contact for the project. moreover , where necessary for granting a derogation under council directive 92/43/eec56 and directive 2000/60/ec of the european parliament and council57 , the establishment and operation of these facilities may be considered as being of overriding public interest within the meaning of the aforementioned legal texts , provided that the remaining other conditions set out in these provisions are fulfilled. ### (26) it is necessary that integrated production facilities and open eu foundries are set-up as quickly as possible , while keeping the administrative burden to a minimum , which shall not prevent the necessary conducting of a climate and environmental impact assessment for every new or retrofitted facility. extreme weather events , such as the droughts experienced in many eu member states in summer of 2022 together with the significant quantities of water and energy necessary for the production of semiconductors highlight the importance of such climate and environmental impact assessments.


### 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 improve the long-term relative competitiveness of the eu semiconductor industry by leveraging already existing capabilities and comparative advantages and investing in a cost-effective way and foster to the extent possible technological capacity building and innovation throughout the union to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union advanced design , systems integration and chips production capabilities , as well as contribute to the achievement of the twin digital and green transition.


### 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 improve the long-term relative competitiveness of the union's semiconductor industry by leveraging already existing capabilities and comparative advantages and investing in a cost-effective way and foster to the extent possible technological capacity building and innovation throughout the union to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union advanced design , systems integration and chips production capabilities , as well as contribute to the achievement of the twin digital and green transition.


### (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 investments into training and education.


### (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 with advanced skills up to the phd level for strengthening the semiconductor sector , including via reskilling and up skilling of students and skilled workers.


### 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 , by means of delegated acts , set the procedure for establishing competence centres , including selection criteria , and further tasks and functions of the centres with respect to the implementation of the actions under the initiative , the procedure for establishing the network as well to adopt decisions on the selection of entities forming the network. those delegated acts shall be adopted in accordance with the examination procedure referred to in article 33(2).


### 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. ### deleted


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


### 2. where an assessment of the commission provides concrete , serious , and reliable evidence of a semiconductor crisis , the commission may activate the crisis stage by means of implementing acts in accordance with article 33(2). the duration of the activation shall be specified in the implementing act. where , in view of the scope and gravity of the semiconductor crisis , duly justified imperative grounds of urgency so require , the procedure provided for in article 33(3) shall apply to implementing acts adopted pursuant to this article. ### 2. only after having consulted the european semiconductor board and having fully taken into consideration its opinion and where an assessment of the commission provides concrete , serious , and reliable evidence of a semiconductor crisis , the commission may activate the crisis stage by means of delegated acts in accordance with article 33(2). the duration of the activation shall be specified in the delegated act.


### 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 after having consulted the european semiconductor board may oblige integrated production facilities and open eu foundries to accept and prioritise an order of crisis-relevant products (‘priority rated order’) only if this can be justified based on the findings of the impact assessment pursuant to to article 15a(3). the obligation shall take precedence over any performance obligation under private or public law.


### 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 after having consulted the european semiconductor board may oblige that undertaking to accept and prioritise orders of crisis relevant products in line with paragraph 4 , 5 and 6 , only if this can be considered justified based on the findings of the impact assessment pursuant to article 15a(3).


### 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 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 , specify the product and quantity , and , where applicable , state the penalties provided for in article 28 for non-compliance with the obligation. the priority rated order shall be placed at a reasonable price , that accounts for the cost and efforts required for any change in the production sequence as well as the cost associated with cancellation or delaying of existing orders , based on the market conditions at that time.


### 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 and especially the findings of the impact assessment pursuant to article 15a(3) . the decision shall in particular have regard for the legitimate aims of the undertaking concerned and the cost and effort required for any change in production sequence. in its decision , the commission shall state the legal basis of the priority rated order , fix the time-limit within which the order is to be performed , specify the product and quantity , and , where applicable , state the penalties provided for in article 28 for non-compliance with the obligation. the priority rated order shall be placed at a reasonable price , that accounts for the cost and efforts required for any change in the production sequence as well as the cost associated with cancellation or delaying of existing orders , based on the market conditions at that time.


### (4) it is necessary to take measures to build capacity and strengthen the union’s semiconductor sector in line with article 173(3) of the treaty. these measures do not entail the harmonisation of national laws and regulations. in this regard , the union should reinforce the competitiveness and resilience of the semiconductor technological and industrial base , whilst strengthening the innovation capacity of its semiconductor sector , reducing dependence on a limited number of third country companies and geographies , and strengthening its capacity to design and produce advanced components. the chips for europe initiative (the ‘initiative’) should support these aims by bridging the gap between europe’s advanced research and innovation capabilities and their sustainable industrial exploitation. it should promote capacity building to enable design , production and systems integration in next generation semiconductor technologies , enhance collaboration among key players across the union , strengthening europe's semiconductor supply and value chains , serving key industrial sectors and creating new markets. ### (4) it is necessary to take measures to build capacity and strengthen the union’s semiconductor sector in line with article 173(3) of the treaty on the functioning of the european union. these measures do not entail the harmonisation of national laws and regulations. in this regard , the union should reinforce the competitiveness and resilience of the semiconductor technological and industrial base , whilst strengthening the innovation capacity of its semiconductor sector , reducing dependence on a limited number of third country companies and geographies , and strengthening its capacity to design , produce , package , reuse , and recycle advanced components. the chips for europe initiative (the ‘initiative’) should support these aims by bridging the gap between europe’s advanced research and innovation capabilities and their sustainable industrial exploitation. it should promote capacity building to enable design , production and systems integration in next generation semiconductor technologies , enhance collaboration among key players across the union , strengthening europe's semiconductor supply and value chains , serving key industrial sectors and creating new markets.


### (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. ### (6) the achievement of these objectives will be supported by a governance mechanism. at union level , this regulation establishes a european semiconductor board , composed of representatives of the member states , the european parliament and chaired by the commission. the composition of the european semiconductor board should be gender balanced. the european semiconductor board , granting stakeholders the possibility to become official observers and to provide expert input , will approve the methodology for the mapping of the semiconductor value and supply chain , provide advice to and assist the commission on specific questions , including the consistent application of this regulation , facilitating cooperation among member states and exchanging information on issues relating to this regulation. the european semiconductor board should hold separate meetings for its tasks under the different chapters of this regulation. the different meetings may include different compositions of the high-level representatives and the commission may establish subgroups , ensuring access to members and observers of the european semiconductor board .


### (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 resilience of the union’s semiconductor ecosystem. semiconductor production should therefore be counted as part of eu core strategic infrastructure. the actions taken under this regulation should also enable the union to play a stronger role , as a centre of excellence , in a better functioning global , interdependent semiconductors ecosystem. the commission , assisted by the european semiconductor board , should cooperate and build partnerships with third countries with a view to seeking solutions to address , to the extent possible , disruptions of the semiconductor supply chain. given the strategic nature of the semiconductor infrastructure , all investments from third-countries should be subject to scrutiny to avoid losing control to authoritarian or unfriendly foreign governments or their proxies.


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


### (13) in order to overcome the limitations of the current fragmented public and private investments efforts , facilitate integration , cross-fertilisation , and return on investment on the ongoing programmes and to pursue a common strategic union vision on semiconductors as a means to realising the ambition of the union and of its member states to ensure a leading role in the digital economy , the chips for europe initiative should facilitate better coordination and closer synergies between the existing funding programmes at union and national levels , better coordination and collaboration with industry and key private sector stakeholders and additional joint investments with member states. the implementation set up of the initiative is built to pool resources from the union , member states and third countries associated with the existing union programmes , as well as the private sector. the success of the initiative can therefore only be built on a collective effort by member states , with the union , to support both the significant capital costs and the wide availability of virtual design , testing and piloting resources and diffusion of knowledge , skills and competences. where appropriate , in view of the specificities of the actions concerned , the objectives of the initiative , specifically the ‘chips fund’ activities , should also be supported through a blending facility under the investeu fund. ### (13) in order to overcome the limitations of the current fragmented public and private investments efforts , facilitate integration , cross-fertilisation , and return on investment on the ongoing programmes and to pursue a common strategic union vision on semiconductors as a means to realising the ambition of the union and of its member states to ensure a leading role in the digital economy , the chips for europe initiative should facilitate better coordination and closer synergies between the existing funding programmes at union and national levels , better coordination and collaboration with industry and key private sector stakeholders and additional joint investments with member states , and encourage the collaborative development and sharing of technology under free and open source licences , and following open access and open science principles , in particular in public procurement and where funding comes from union and national public sources , to secure the longevity , sustainability , and reusability of such programmes and their outcomes. the initiative is built to pool resources from the union , member states and third countries associated with the existing union programmes , as well as the private sector. the success of the initiative can therefore only be measured on a collective effort by member states , with the union , to support both the significant capital costs and the wide availability of virtual design , testing and piloting resources and diffusion of knowledge , skills and competences. where appropriate , in view of the specificities of the actions concerned , the objectives of the initiative , specifically the ‘chips fund’ activities , should also be supported through a blending facility under the investeu fund.


### (14) support from the initiative should be used to address market failures or sub-optimal investment situations in a proportionate manner , and actions should not duplicate or crowd out private financing or distort competition in the internal market. actions should have a clear added value for the union. ### (14) support from the initiative should be used to address market failures or sub-optimal investment situations in a proportionate , sustainable manner , and actions should not duplicate or crowd out private financing or distort competition in the internal market. actions should have a clear added value for the union.


### (15) the initiative should build upon the strong knowledge base and enhance synergies with actions currently supported by the union and member states through programmes and actions in research and innovation in semiconductors and in developments of part of the supply chain , in particular horizon europe and the digital europe programme established by regulation (eu) 2021/694 of the european parliament and of the council54 with the aim by 2030 , to reinforce the union as global player in semiconductor technology and its applications , with a growing global share in manufacturing. complementing those activities , the initiative would closely collaborate with other relevant stakeholders , including with the industrial alliance on processors and semiconductor technologies. ### (15) the initiative should build upon the strong knowledge base and enhance synergies with actions currently supported by the union and member states through programmes and actions in research and innovation in semiconductors , in developments of part of the supply chain , in particular horizon europe and the digital europe programme established by regulation (eu) 2021/694 of the european parliament and of the council54 , and initiatives regarding free and open source software , open access and open science , including isa2 and its successor , interoperable europe , with the aim by 2030 , to reinforce the union as global player in semiconductor technology and its applications , with a growing global share in chips manufacturing. complementing those activities , the initiative should closely collaborate with other relevant stakeholders , including with the industrial alliance on processors and semiconductor technologies.


### (19) integrated production facilities and open eu foundries should provide semiconductor manufacturing capabilities that are “first-of-a-kind” in the union and contribute to the security of supply and to a resilient ecosystem in the internal market. the qualifying factor for the production of a first-of-a-kind facility could be with regard to the technology node , substrate material , such as silicon carbide and gallium nitride , and other product innovation that can offer better performance , process technology or energy and environmental performance. a facility of a comparable capability on an industrial scale should not yet substantively be present or committed to be built within the union , excluding facilities for research and development or small-scale production sites. ### (19) integrated production facilities and open eu foundries should provide semiconductor manufacturing capabilities that are “first-of-a-kind” in the union and contribute to the reliability , security , and resilience of the supply and the ecosystem in the eu through new or retrofitted industrial facilities capable of semiconductor manufacturing or design , including front-end or back-end , or both , or capable of manufacturing materials or equipment specifically used in semiconductor manufacturing , that is not substantively already present or committed to be built within the union , for instance with regard to the technology node , substrate material , such as silicon carbide and gallium nitride , or other product or production innovation that can offer state-of-the-art or better performance , process technology , increases the recyclability of semiconductors , reduces significantly and demonstrably the required production inputs such as energy , water , toxic chemicals , heavy metals and rare earths , or demonstrably enables significant energy savings in related industries and sectors and enables the deployment of renewable energy , storage and transmission capacities.


### (22) it is important that integrated production facilities and open eu foundries are not subject to extraterritorial application of public service obligations imposed by third countries that could undermine their ability to use their infrastructure , software , services , facilities , assets , resources , intellectual property or knowhow needed to fulfil the obligation on priority rated orders under this regulation , which they would have to guarantee. ### (22) it is important that integrated production facilities and open eu foundries are not subject to extraterritorial application of public service obligations imposed by third countries which they would have to guarantee.


### (23) in light of the fast development of semiconductor technologies and to strengthen the future industrial competitiveness of the union , integrated production facilities and open eu foundries should commit to continued and efficient investment into the next generations of semiconductors , including by testing and experimenting new developments through priority access to the pilot lines set up by the chips for europe initiative , without prejudice to effective access by others. ### (23) in light of the fast development of semiconductor technologies and to strengthen the future industrial competitiveness of the union , integrated production facilities and open eu foundries should commit to continued and efficient investment into the next generations of semiconductors , including by testing and experimenting new developments through access to the pilot lines set up by the chips for europe initiative , without prejudice to effective access by others , especially of smes and start-ups.


### (24) to allow for a uniform and transparent procedure to attain recognition as an integrated production facility and open eu foundry , the recognition decision should be adopted by the commission following the application by an individual undertaking or a consortium of several undertakings. to account for the importance of a coordinated and cooperated implementation of the planned facility , the commission should take into account in its assessment the readiness of the member state or member states where the applicant intends to establish its facilities to support the set-up. furthermore , when assessing the viability of the business plan , the commission could take into account the overall record of the applicant. in light of the privileges attached to recognition as an integrated production facility or open eu foundry , the commission should monitor whether facilities that have been granted this status continue to comply with the criteria set out in this regulation. ### (24) to allow for a uniform and transparent procedure to attain recognition as an integrated production facility and open eu foundry , the recognition decision should be adopted by the commission following the application by an individual undertaking or a consortium of several undertakings. to account for the importance of a coordinated and cooperated implementation of the planned facility , the commission should take into account in its assessment the readiness of the member state or member states where the applicant intends to establish its facilities to support the set-up. furthermore , when assessing the viability of the business plan , the commission could take into account the overall record of the applicant , the clear and demonstrable contribution of the eligible action proposed to be implemented to the long term competitiveness of the eu semiconductor industry and the objectives described in article 4 , the cost-effectiveness of the eligible action proposed to be implemented , the contribution to achieving the twin green and digital transition of the eligible action proposed to be implemented , the environmental impact of the eligible action proposed to be implemented and the commitment to prevent and remedy any existing and new negative impact to the environment or biodiversity , as well as the participation of smes and start-ups . in light of the privileges attached to recognition as an integrated production facility or open eu foundry , the commission should monitor whether facilities that have been granted this status continue to comply with the criteria set out in this regulation.


### (31) any relevant findings , including information provided by relevant stakeholders and industry associations , should be provided to the european semiconductor board to allow for a regular exchange of information between high-level representatives of member states and for integration of the information into a monitoring overview of the semiconductor value chains. ### (31) any relevant findings , including information , inter alia provided by relevant stakeholders and industry associations , should be provided to the european semiconductor board to allow for a regular exchange of information between the appointed representatives and official observers and for integration of the information into a monitoring overview of the semiconductor value chains.


### (46) a number of sectors are critical for the proper functioning of the internal market. those critical sectors are the sectors listed in the annex of the commission proposal for a directive of the european parliament and of the council on the resilience of critical entities61 . for the purposes of this regulation , defence and other activities that are relevant for public safety and security should be additionally considered as a critical sector. certain measures should only be enacted fur the purpose of securing supply to critical sectors. the commission may limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation. ### (46) a number of sectors are critical for the proper functioning of the internal market. those critical sectors are the sectors listed in the annex of the commission proposal for a directive of the european parliament and of the council on the resilience of critical entities61 as well as the producers of renewable energy , storage and distribution and transmission equipment. for the purposes of this regulation , defence and other activities that are relevant for public safety and security should be additionally considered as a critical sector. certain measures should only be enacted fur the purpose of securing supply to critical sectors. the commission may limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation.


### (52) the obligation to prioritise the production of certain products respects the essence of and will not disproportionately affect the freedom to conduct a business and the freedom of contract laid down in article 16 of the charter of fundamental rights of the european union (‘the charter’) and the right to property laid down in article 17 of the charter. any limitation of those rights in this regulation will , in accordance with article 52(1) of the charter , be provided for by law , respect the essence of those rights and freedoms , and comply with the principle of proportionality. ### (52) the obligation to prioritise the production of certain products respects the essence of and will not disproportionately affect the freedom to conduct a business and the freedom of contract laid down in article 16 of the charter of fundamental rights of the european union (‘the charter’) and the right to property laid down in article 17 of the charter. any limitation of those rights in this regulation , in accordance with article 52(1) of the charter , needs to be provided for by law , respect the essence of those rights and freedoms , and comply with the principle of proportionality.


### (56) a representative of the commission should chair the european semiconductor board. each member state’s national single point of contact should appoint at least one high-level representative to the european semiconductor board. they could also appoint different representatives in relation to different tasks of the european semiconductor board , for example , depending on which chapter of this regulation is discussed in the meetings of the european semiconductor board. the commission may establish sub-groups and should be entitled to establish working arrangements by inviting experts to take part in the meetings on an ad hoc basis or by inviting organisations representing the interests of the union semiconductors industry , such as the industrial alliance on processors and semiconductor technologies , in its sub-groups as observers. ### (56) a representative of the commission should chair the european semiconductor board. each member state’s national single point of contact should appoint at least one high-level representative to the european semiconductor board. they could also appoint different representatives in relation to different tasks of the european semiconductor board , for example , depending on which chapter of this regulation is discussed in the meetings of the european semiconductor board , the european parliament should appoint a representative. the commission may establish sub-groups and should be entitled to establish working arrangements by inviting experts to take part in the meetings on an ad hoc basis or by inviting organisations representing the interests of the union semiconductors industry , such as the industrial alliance on processors and semiconductor technologies , in its sub-groups as observers.


### (58) member states hold a key role in the application and enforcement of this regulation. in this respect , each member state should designate one or more national competent authorities for the purpose of effective implementation of this regulation and ensure that those authorities are adequately empowered and resourced. member states could designate an existing authority or authorities. in order to increase organisation efficiency in the member states and to set an official point of contact vis-a-vis the public and other counterparts at member state and union levels , including the commission and the european semiconductor board , each member state should designate , within one of the authorities it designated as competent authority under this regulation , one national single point of contact responsible for coordinating issues related to this regulation and cross-border cooperation with competent authorities of other member states. ### (58) each member state should designate one or more national competent authorities for the purpose of effective implementation of this regulation and ensure that those authorities are adequately empowered and resourced , and that the relevant administrative bodies have the necessary level of expertise. member states could designate an existing authority or authorities. in order to increase organisation efficiency in the member states and to set an official point of contact vis-a-vis the public and other counterparts at member state and union levels , including the commission and the european semiconductor board , each member state should designate , within one of the authorities it designated as competent authority under this regulation , one national single point of contact responsible for coordinating issues related to this regulation and cross-border cooperation with competent authorities of other member states.


### (59) in order to ensure trustful and constructive cooperation of competent authorities at union and national level , all parties involved in the application of this regulation should respect the confidentiality of information and data obtained in carrying out their tasks. the commission and the national competent authorities , their officials , servants and other persons working under the supervision of these authorities as well as officials and civil servants of other authorities of the member states should not disclose information acquired or exchanged by them pursuant to this regulation and of the kind covered by the obligation of professional secrecy. this should also apply to the european semiconductor board and the semiconductor committee established in this regulation. where appropriate , the commission should be able to adopt implementing acts to specify the practical arrangements for the treatment of confidential information in the context of information gathering. ### (59) in order to ensure trustful and constructive cooperation of competent authorities at union and national level , all parties involved in the application of this regulation should respect the confidentiality of information and data obtained in carrying out their tasks. the commission and the national competent authorities , their officials , servants and other persons working under the supervision of these authorities as well as officials and civil servants of other authorities of the member states should not disclose information acquired or exchanged by them pursuant to this regulation and of the kind covered by the obligation of professional secrecy. this should also apply to the european semiconductor board and the semiconductor committee established in this regulation. where appropriate , the commission should be able to adopt delegated acts to specify the practical arrangements for the treatment of confidential information in the context of information gathering.


### (62) in order to ensure uniform conditions for the implementation of this regulation , implementing powers should be conferred on the commission as regards the selection of ecics and as regards the procedure for establishing and defining the tasks of competence centres and the procedure for establishing the network , so that the objectives of the initiative are achieved. furthermore , implementing powers should be conferred on the commission as regards activating the crisis stage in a semiconductor crisis , to allow a rapid and coordinated response , and for specifying the practical arrangements for the treatment of confidential information. those powers should be exercised in accordance with regulation (eu) no 182/2011 of the european parliament and of the council64 of the european parliament and of the council. ### (62) in order to ensure uniform conditions for the implementation of this regulation , delegated powers should be conferred on the commission as regards the selection of ecics and as regards the procedure for establishing and defining the tasks of competence centres and the procedure for establishing the network , so that the objectives of the initiative are achieved. furthermore , delegated powers should be conferred on the commission as regards activating the crisis stage in a semiconductor crisis , to allow a rapid and coordinated response , and for specifying the practical arrangements for the treatment of confidential information. those powers should be exercised in accordance with regulation (eu) no 182/2011 of the european parliament and of the council64 of the european parliament and of the council.


### (2) ‘chip’ means an electronic device comprising various functional elements on a single piece of semiconductor material , typically taking the form of memory , logic , processor and analogue devices , also referred to as ‘integrated circuit’; ### (2) ‘chip’ means an electronic device comprising various functional elements on a single piece of semiconductor material , typically taking the form of memory , logic , processor and other , application-specific , analogue , digital , and mixed , permanently or temporarily programmed devices , also referred to as ‘integrated circuit’;


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


### (10) ‘first-of-a-kind facility’ means an industrial facility capable of semiconductor manufacturing , including front-end or back-end , or both , that is not substantively already present or committed to be built within the union , for instance with regard to the technology node , substrate material , such as silicon carbide and gallium nitride , and other product innovation that can offer better performance , process innovation or energy and environmental performance; ### (10) ‘first-of-a-kind facility’ means a new or retrofitted industrial facility capable of semiconductor manufacturing or design , including front-end or back-end , or both , or capable of manufacturing materials or equipment specifically used in semiconductor manufacturing , that is not substantively already present or committed to be built within the union , for instance with regard to the technology node , substrate material , such as silicon carbide and gallium nitride , and other product or production innovation that can offer state-of-the-art or better performance , process innovation or increases the recyclability of semiconductors , reduces significantly and demonstrably the required production inputs , such as energy , water , toxic chemicals , heavy metals and rare earths , demonstrably enables energy savings in other industries and sectors and enables the deployment of renewable energy , storage and transmission capacities;


### (10) ‘first-of-a-kind facility’ means an industrial facility capable of semiconductor manufacturing , including front-end or back-end , or both , that is not substantively already present or committed to be built within the union , for instance with regard to the technology node , substrate material , such as silicon carbide and gallium nitride , and other product innovation that can offer better performance , process innovation or energy and environmental performance; ### (10) ‘first-of-a-kind facility’ means a new or retrofitted industrial facility capable of semiconductor manufacturing or design , including front-end or back-end , or both , or capable of manufacturing materials or equipment specifically used in semiconductor manufacturing , that is not substantively already present or committed to be built within the union , for instance with regard to the technology node , substrate material , such as silicon carbide and gallium nitride , or other product or production innovation that can offer state-of-the-art performance , increases the recyclability of semiconductors , reduces significantly and demonstrably the required production inputs , such as energy , water , toxic chemicals and heavy metals , demonstrably enables energy savings in other industries and sectors and enables the deployment of renewable energy , storage and transmission capacities;


### (11) ‘next generation chips’ and ‘next generation semiconductor technologies’ means chips and semiconductor technologies that go beyond the state of the art in offering significant improvements in computing power or energy efficiency as well as other significant energy and environmental gains; ### (11) ‘next generation chips’ and ‘next generation semiconductor technologies’ means chips and semiconductor technologies that go beyond the state of the art in offering significant improvements in computing power or energy efficiency , security , or the efficiency of energy generation , storage , and transmission , as well as improvements in recyclability and other significant energy and environmental gains , or that require significantly and demonstrably less production inputs , such as energy , water , toxic chemicals , heavy metals and rare earths;


### (11) ‘next generation chips’ and ‘next generation semiconductor technologies’ means chips and semiconductor technologies that go beyond the state of the art in offering significant improvements in computing power or energy efficiency as well as other significant energy and environmental gains; ### (11) ‘next generation chips’ and ‘next generation semiconductor technologies’ means chips and semiconductor technologies that go beyond the state of the art in offering significant improvements in computing power , power management , security , or energy generation , storage , transmission and efficiency or improvements in recyclability as well as other significant energy and environmental gains or that require significantly and demonstrably less production inputs , such as energy , water , toxic chemicals and heavy metals;


### building up advanced large-scale design capacities for integrated semiconductor technologies. this operational objective shall be achieved through: ### building up advanced and specialised design capacities for integrated semiconductor technologies. this operational objective shall be achieved through:


### (2) supporting large scale innovation through access to new or existing pilot lines for experimentation , test , and validation of new design concepts integrating key functionalities , such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility , lower energy consumption , security , higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (ai) chips , integrated photonics , graphene and other 2d material based technologies; ### (2) supporting innovation through access to new or existing pilot lines for experimentation , test , and validation of new design concepts integrating key functionalities , such as novel materials and architectures for power electronics fostering renewable energy , manufacturing according to the highest environmental standards with an obligation to reduce the required production inputs , such as water , energy , toxic chemicals , heavy metals and rare earths , electro mobility , lower energy consumption , higher energy and resource efficiency , security , higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (ai) chips , integrated photonics , graphene and other 2d material based technologies;


### (2) supporting large scale innovation through access to new or existing pilot lines for experimentation , test , and validation of new design concepts integrating key functionalities , such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility , lower energy consumption , security , higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (ai) chips , integrated photonics , graphene and other 2d material based technologies; ### (2) supporting innovation through access to new or existing pilot lines for experimentation , test , and validation of new design concepts integrating key functionalities , such as novel materials and architectures for power electronics fostering renewable energy , manufacturing according to the highest environmental standards with an obligation to reduce the required production inputs , such as water , energy , toxic chemicals and heavy metals , electro mobility , lower energy consumption , energy efficiency , security , higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (ai) chips , integrated photonics , graphene and other 2d material based technologies;


### (3) providing support to integrated production facilities and open eu foundries through priority access to the new pilot lines. ### (3) providing support to integrated production facilities and open eu foundries through priority access to the new pilot lines. providing access to new pilot lines for all interested parties and guaranteeing access to start-ups and smes.


### (3) providing support to integrated production facilities and open eu foundries through priority access to the new pilot lines. ### (3) providing support to integrated production facilities and open eu foundries through access to the new pilot lines , as well as providing access to new pilot lines for all interested parties and guaranteeing access to start-ups and smes.


### 1. the initiative shall enable synergies with union programmes , as referred to in annex iii. the commission shall ensure that the achievement of the objectives is not hampered when leveraging the complementary character of the initiative with union programmes. ### 1. the initiative shall enable synergies with union programmes , as referred to in annex iii. the commission shall ensure that the achievement of the objectives of the other programmes are not hampered when leveraging the complementary character of the initiative with union programmes.


### 1. for the purpose of implementing eligible actions and other related tasks funded under the initiative a european chips infrastructure consortium (‘ecic’) may be established under the conditions set out in this article. ### 1. for the purpose of implementing eligible actions funded under the initiative a european chips infrastructure consortium (‘ecic’) may be established under the conditions set out in this article.


### the commission by means of an implementing act and based on the criteria set out in paragraph 4 , shall adopt one of the following decisions: ### the commission by means of a delegated act and based on the criteria set out in paragraph 4 , shall adopt one of the following decisions:


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


### 1. for the purpose of implementing actions under the initiative’s component referred to in article 5 , point (d) , a european network of competence centres in semiconductors (the ‘network’) may be established. ### 1. for the purpose of implementing actions under the initiative’s component referred to in article 5 , point (d) , a european network of competence centres in semiconductors (the ‘network’) shall be established.


### 1. the components listed in points (a) to (d) of article 5 under the initiative may be entrusted to the chips joint undertaking referred to in council regulation xx/xx amending council regulation (eu) 2021/2085 and implemented in the work programme of the chips joint undertaking. ### 1. the general objectives as well as the objectives described in article 4 paragraph 2 , points a , b , and c , shall be stated in their entirety in the basic act establishing the chips joint undertaking referred to in council regulation xx/xx amending council regulation (eu) 2021/2085 and implemented in the work programme of the chips joint undertaking.


### 1. the components listed in points (a) to (d) of article 5 under the initiative may be entrusted to the chips joint undertaking referred to in council regulation xx/xx amending council regulation (eu) 2021/2085 and implemented in the work programme of the chips joint undertaking. ### 1. the general objectives as well as the operational objectives laid down in article 4(2) , paragraphs a , b and c shall be stated in their entirety in the basic act establishing the chips joint undertaking , council regulation xx/xx amending council regulation (eu) 2021/2085 and implemented in the work programme of the chips joint undertaking.


### 1. integrated production facilities are first-of-a-kind semiconductor design and manufacturing facilities , including front-end or back-end , or both , in the union that contribute to the security of supply for the internal market. ### 1. integrated production facilities are new or retrofitted first-of-a-kind semiconductor design and manufacturing facilities , including front-end or back-end , or both , in the union that contribute to the security of supply for the internal market or improve the relative competitiveness of the eu semiconductor industry.


### 1. integrated production facilities are first-of-a-kind semiconductor design and manufacturing facilities , including front-end or back-end , or both , in the union that contribute to the security of supply for the internal market. ### 1. integrated production facilities are new or retrofitted first-of-a-kind semiconductor design and manufacturing facilities , including front-end or back-end , or both , in the union that contribute to the security of supply for the internal market or improve the relative competitiveness of the union's semiconductor industry.


### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply and increasing qualified workforce; ### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply , inter alia by increasing the strategic relevance of or demand for specific eu semiconductor products and services within the global semiconductor value chain , and increasing qualified workforce;


### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply and increasing qualified workforce; ### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply inter alia by increasing the strategic relevance of or demand for specific union's semiconductor products and services within the global semiconductor value chain , and increasing qualified workforce;


### it guarantees not to be subject to the extraterritorial application of public service obligations of third countries in a way that may undermine the undertaking’s ability to comply with the obligations set out in article 21(1) and commits to inform the commission when such obligation arises; ### it guarantees not to be subject to the extraterritorial application of public service obligations of third countries and commits to inform the commission when such obligation arises;


### it commits to invest in the next generation of chips. ### it commits to invest in the design , production , packaging , reuse or recycling of next generation of chips.


### 3. for the purpose of investing in the next generation of chips according to paragraph 2 , point (d) , the integrated production facility shall have priority access to the pilot lines set up in accordance with article 5 , point (b). any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings. ### 3. for the purpose of investing in the design , production , packaging , reuse or recycling of the next generation of chips according to paragraph 2 , point (d) , the integrated production facility shall have access to the pilot lines set up in accordance with article 5 , point (b). any such access shall be without prejudice to effective access to the pilot lines by other interested undertakings , especially smes and start-ups .


### 3. for the purpose of investing in the next generation of chips according to paragraph 2 , point (d) , the integrated production facility shall have priority access to the pilot lines set up in accordance with article 5 , point (b). any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings. ### 3. for the purpose of investing in the design , production , packaging , reuse or recycling next generation of chips according to paragraph 2 , point(d) , the integrated production facility shall have access to the pilot lines set up in accordance with article 4 , point (b). any such access shall be without prejudice to effective access to the pilot lines by other interested undertakings , especially smes and start-ups.


### 1. open eu foundries are first-of-a-kind semiconductor front-end or back-end , or both , manufacturing facilities in the union that offer production capacity to unrelated undertakings and thereby contribute to the security of supply for the internal market. ### 1. open eu foundries are new or retrofitted first-of-a-kind semiconductor front-end or back-end , or both , manufacturing facilities in the union that offer production capacity to unrelated undertakings and thereby contribute to the security of supply for the internal market or improve the relative competitiveness of the eu semiconductor industry.


### 1. open eu foundries are first-of-a-kind semiconductor front-end or back-end , or both , manufacturing facilities in the union that offer production capacity to unrelated undertakings and thereby contribute to the security of supply for the internal market. ### 1. open eu foundries are new or retrofitted first-of-a-kind semiconductor front-end or back-end , or both , manufacturing facilities in the union that offer production capacity to unrelated undertakings and thereby contribute to the security of supply for the internal market or improve the relative competitiveness of the union's semiconductor industry.


### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply and increasing qualified workforce , taking into account in particular the extent to which it offers front-end or back-end , or both , production capacity to undertakings not related to the facility , if there is sufficient demand; ### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply , inter alia by increasing the strategic relevance of or demand for specific eu semiconductor products and services within the global semiconductor value chain , and increasing qualified workforce , taking into account in particular the extent to which it offers design or front-end or back-end , or both , production capacity to undertakings not related to the facility , if there is sufficient demand;


### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply and increasing qualified workforce , taking into account in particular the extent to which it offers front-end or back-end , or both , production capacity to undertakings not related to the facility , if there is sufficient demand; ### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply inter alia by increasing the strategic relevance of or demand for specific union's semiconductor products and services within the global semiconductor value chain , and increasing qualified workforce , taking into account in particular the extent to which it offers design or front-end or back-end , or both , production capacity to undertakings not related to the facility , if there is sufficient demand;


### it commits to invest in the next generation of chips. ### it commits to invest in the design , production , packaging , reuse or recycling of the next generation of chips.


### 4. for the purpose of investing in the next generation of chips according to paragraph 2 , point (d) , the open eu foundry shall have priority access to the pilot lines set up in accordance with article 5 , point (b). any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings. ### 4. for the purpose of investing in the design , production , packaging , reuse or recycling of the next generation of chips according to paragraph 2 , point (d) , the open eu foundry shall have priority access to the pilot lines set up in accordance with article 5 , point (b). any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings , especially smes and start-ups .


### 4. for the purpose of investing in the next generation of chips according to paragraph 2 , point (d) , the open eu foundry shall have priority access to the pilot lines set up in accordance with article 5 , point (b). any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings. ### 4. for the purpose of investing in the design , production , packaging , reuse or recycling of next generation of chips according to paragraph 2 , point (d) , the open eu foundry shall have access to the pilot lines set up in accordance with article 5 , point (b). any such access shall be without prejudice to effective access to the pilot lines by other interested undertakings , especially smes and start-ups.


### a business plan evaluating the financial viability of the project , including information on any planned public support; ### a business plan evaluating the financial viability of the project , including a detailed calculation of any funding gap including a description of the methodology that is used for this calculation and any planned public support;


### a business plan evaluating the financial viability of the project , including information on any planned public support; ### a business plan evaluating the financial viability of the project , including a detailed calculation of any funding gap including a description of the methodology that is used for this calculation and any information on planned public support;


### the commission shall process the application and adopt its decision in a timely manner and notify the applicant thereof. ### the commission shall request additional information where it considers the information provided by the applicant as incomplete and process the application and adopt its decision in a timely manner and notify the applicant thereof.


### 3. the commission shall monitor the activities of the integrated production facilities and the open eu foundries. where the commission finds that a facility no longer fulfils the criteria set out in articles 10(2) or in article 11(2) respectively , it shall notify the findings to the european semiconductor board. after consulting the european semiconductor board and after hearing the facility , the commission may repeal the decision granting a facility the status of integrated production facility or open eu foundry. ### 3. the commission shall monitor the activities of the integrated production facilities and the open eu foundries , in particular to the extent necessary to evaluate if all the requirements for recognising a facility as integrated production facility or open eu foundry are fulfilled. where the commission finds that a facility no longer fulfils the criteria set out in articles 10(2) or in article 11(2) respectively , it shall notify the findings to the european semiconductor board. after consulting the european semiconductor board and after hearing the facility , the commission may repeal the decision granting a facility the status of integrated production facility or open eu foundry.


### 3. the commission shall monitor the activities of the integrated production facilities and the open eu foundries. where the commission finds that a facility no longer fulfils the criteria set out in articles 10(2) or in article 11(2) respectively , it shall notify the findings to the european semiconductor board. after consulting the european semiconductor board and after hearing the facility , the commission may repeal the decision granting a facility the status of integrated production facility or open eu foundry. ### 3. the commission shall monitor the activities of the integrated production facilities and the open eu foundries only to the extent necessary to evaluate if all the requirements for recognising a facility as integrated production facility or open eu foundry are fulfilled. where the commission finds that a facility no longer fulfils the criteria set out in articles 10(2) or in article 11(2) respectively , it shall notify the findings to the european semiconductor board. after consulting the european semiconductor board and after hearing the facility , the commission may repeal the decision granting a facility the status of integrated production facility or open eu foundry.


### 2. where such status exists in national law , integrated production facilities and open eu foundries shall be allocated the status of the highest national significance possible and be treated as such in permit granting processes , including those relating to environmental assessments and if national law so provides , in spatial planning. ### 2. where such status exists in national law , integrated production facilities and open eu foundries shall be allocated the status of the highest national significance. in order to comply to the goals of the twin green and digital transition , no derogation from environmental assessments and requirements shall be granted , while stringent requirements shall be put in place to reduce and remedy the use of water and biodiversity impact. in determining the location of such facilities , the spatial planning procedures shall continue applying unchanged and the interaction with regional infrastructure and its environmental and social consequences should be factored in to the decision to allow any construction.


### 2. where such status exists in national law , integrated production facilities and open eu foundries shall be allocated the status of the highest national significance possible and be treated as such in permit granting processes , including those relating to environmental assessments and if national law so provides , in spatial planning. ### 2. where such status exists in national law , integrated production facilities and open eu foundries shall be allocated the status of the highest national significance possible. in order to comply to the goals of the twin green and digital transition , no derogation from environmental assessments and requirements shall be granted , while stringent requirements shall be put in place for the use of water and the reduction of biodiversity impact. in determining the location of such facilities , the spatial planning procedures shall apply to the outmost extent and the interaction with the regional infrastructure and its environmental and social consequences shall be factored in the decision to allow the construction.


### 4. for each integrated production facility and open eu foundry , the member state concerned shall nominate an authority responsible for facilitating and coordinating administrative applications related to planning , construction and operation. the authority shall appoint a coordinator who shall serve as the single point of contact for the integrated production facility or open eu foundry. the authority may establish a working group where all authorities involved in the administrative applications are represented in order to draw up a permit granting schedule and to monitor and coordinate its implementation. if the setting up of an integrated production facility or an open eu foundry requires decisions to be taken in two or more member states , the respective authorities shall take all necessary steps for efficient and effective cooperation and coordination among themselves. ### 4. for each integrated production facility and open eu foundry , the member state concerned shall nominate an authority responsible for facilitating and coordinating administrative applications related to planning , construction and operation. the authority shall appoint a coordinator who shall serve as the single point of contact for the integrated production facility or open eu foundry. the authority may establish a working group where all authorities involved in the administrative applications are represented in order to draw up a permit granting schedule and to monitor and coordinate its implementation. if the setting up of an integrated production facility or an open eu foundry requires decisions to be taken in two or more member states , the respective authorities shall take all necessary steps for efficient and effective cooperation and coordination among themselves. in all cases the goals of the twin green and digital transition must be respected and the polluter pays principle should be effectively and efficiently implemented.