### 8. recalls that africa is home to exceptional biodiversity; expresses concern about the overexploitation of natural resources and its impact on biodiversity , and in particular the increasing pace of deforestation in africa. ### 8. recalls that africa is home to exceptional biodiversity; expresses its deep concern about overexploitation of natural resources and the impact of reduced biodiversity on resilience levels; is particularly concerned at the fact that the pace of deforestation is increasing in africa; points out that the destruction of the african rainforests leads to an irreversible loss of biodiversity and of carbon sinks , as well as of the homes and ways of life of indigenous communities living in the forests; recalls that forests contribute significantly to reaching climate targets , protecting biodiversity and preventing desertification and extreme soil erosion;


### 21. notes that transport networks are critical enablers of trade and prosperous economies; stresses the need to better connect african rural and urban areas; ### 21. notes that transport networks are critical enablers of trade and prosperous economies; stresses the need to better connect african rural and urban areas , whose population will increase 56% by 2050according to the un population division;


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


### (2) a framework for increasing the union’s resilience in the field of semiconductor technologies should be established , stimulating investment , strengthening the capabilities of the union’s semiconductor supply chain , and increasing cooperation among the member states and the commission. ### (2) therefore , legislative action is needed to address existing and potential structural deficiencies in the semiconductor industry and supply chain. a framework for increasing the union’s resilience in the field of semiconductor technologies should be established , stimulating investment , strengthening the capabilities of the union’s semiconductor supply chain , and increasing cooperation among the member states , the commission , like-minded international partners and , where applicable , european regions and local entities.


### (2) a framework for increasing the union’s resilience in the field of semiconductor technologies should be established , stimulating investment , strengthening the capabilities of the union’s semiconductor supply chain , and increasing cooperation among the member states and the commission. ### (2) a framework for increasing the union’s resilience in the field of semiconductor technologies should be established , stimulating investment , strengthening the capabilities of the union’s semiconductor supply chain , increasing cooperation among the member states and the commission , as well as between the eu and like-minded democracies , and strengthening cooperation between the european semiconductor industry and international partners , so as to develop a competitive and sovereign industrial strategy in semiconductor production to decrease the eu's reliance on third countries and prevent future crises and shortages.


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


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


### (43) in order to ensure an agile and effective response to such a semiconductor crisis , the commission should be empowered to activate the crisis stage by means of an implementing acts and for a predetermined duration period , taking into account the opinion of the european semiconductor board. the commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period , should such a necessity be ascertained , taking into account the opinion of the european semiconductor board. ### (43) in order to ensure an agile and effective response to such a semiconductor crisis , the commission should be empowered to activate the crisis stage by means of an implementing act with a defined scope and for a predetermined duration period , taking into account the opinion of the european semiconductor board. the commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period , should such a necessity be ascertained , taking into account the opinion of the european semiconductor board.


### (53) when the crisis stage is activated , two or more member states could mandate the commission to aggregate demand and act on their behalf for their public procurement in the public interest , in accordance with existing union rules and procedures , leveraging its purchasing power. the mandate could authorise the commission to enter into agreements concerning the purchase of crisis-relevant products for certain critical sectors. the commission should assess for each request the utility , necessity and proportionality in consultation with the board. where it intends to not follow the request , it should inform the concerned member states and the board and give its reasons. furthermore , the participating member states should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. the deployment and use of purchased products should remain within the remit of the participating member states. ### (53) when the crisis stage is activated , two or more member states could mandate the commission to aggregate demand and act on their behalf for their public procurement in the public interest , in accordance with existing union rules and procedures , leveraging its purchasing power. the mandate could authorise the commission to enter into agreements concerning the purchase of crisis-relevant products for the critical sectors identified in the scope of the implementing act triggering the crisis stage. the commission should assess for each request the utility , necessity and proportionality in consultation with the board. where it intends to not follow the request , it should inform the concerned member states and the board and give its reasons. furthermore , the participating member states should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. the deployment and use of purchased products should remain within the remit of the participating member states.


### (16) ‘critical sector’ means any sector referred to in the annex of the commission proposal for a directive of the european parliament and of the council on the resilience of critical entities , the defence sector and other activities that are relevant for public safety and security; ### (16) ‘critical sector’ means any sector referred to in the annex of the commission proposal for a directive of the european parliament and of the council on the resilience of critical entities , including types of entities operating within those sectors and not referred thereto , which are crucial for maintaining vital societal functions and ensuring public safety and security.


### (16) ‘critical sector’ means any sector referred to in the annex of the commission proposal for a directive of the european parliament and of the council on the resilience of critical entities , the defence sector and other activities that are relevant for public safety and security; ### (16) ‘critical sector’ means medical , energy , military and defence sectors which are crucial for maintaining vital societal functions and ensuring public health , safety and security;


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


### 1. the commission shall , after consulting the european semiconductor board , assess risks that may disrupt , compromise or negatively affect the supply of semiconductors (union risk assessment). in the union risk assessment , the commission shall identify early warning indicators. ### 1. the commission shall , after consulting the european semiconductor board and relevant industry stakeholders , assess risks that may disrupt , compromise or negatively affect the supply of semiconductors (union risk assessment) and establish early warning indictors.


### 1. the commission shall , after consulting the european semiconductor board , assess risks that may disrupt , compromise or negatively affect the supply of semiconductors (union risk assessment). in the union risk assessment , the commission shall identify early warning indicators. ### 1. the commission shall , after consulting the european semiconductor board , mapping critical factors , trends and events and assess effective and potential risks that may disrupt , compromise or negatively affect the supply and the global value chain of semiconductors (union risk assessment). in the union risk assessment , the commission shall identify early warning indicators.


### 2. the commission shall review the union risk assessment including the early warning indicators as necessary. ### 2. the commission shall , on its own initiative or at the request of the european semiconductor board , review union risk assessment including the early warning indicators as necessary.


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


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


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


### 1. where the crisis stage is activated and where appropriate in order to address the semiconductor crisis in the union , the commission shall take the measure provided for in article 20 under the conditions laid down therein. in addition , the commission may take the measures provided for in article 21 or article 22 , or both , under the conditions laid down therein. ### 1. where the crisis stage is activated and where appropriate in order to address the semiconductor crisis in the union , the commission 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. when taking those measures , the commission should duly consider the potential negative impacts on international partners.


### 2. the commission may , after consulting the european semiconductor board , limit the measures provided for in articles 21 and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis. ### 2. the commission shall , after consulting the european semiconductor board , 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.


### (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 at union level , while also aiming to boost the industrial capacities in member states where the research , design and production of semiconductors is underdeveloped.


### (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 , while aiming to boost the research capacities of member states that do not have the ability to benefit from the industrial manufacturing of chips and their components , so that member states can equally benefit from such long-term investments. to achieve this , the union and member states , should take into consideration the twin digital and green transition goals. the initiative throughout all components and actions , to the extent possible , should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient , effective , clean and durable use of resources , including energy and materials necessary for production and the whole lifecycle use of semiconductors.


### (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 reducing environmental impacts as much as possible. union investments along member states investment and with the private sector in pilot lines is necessary to address the existing structural challenge and market failure where such facilities are not available in the union hindering innovation potential and global competitiveness of the union. third , in order to enable investments in alternative technologies , such as quantum technologies , conducive to the development of the semiconductors sector , the initiative should support actions including on design libraries for quantum chips , pilot lines for building quantum chips and testing and experimentation facilities for quantum components. fourth , in order to promote the use of the semiconductor technologies , to provide access to design and pilot line facilities , and to address skills gaps across the union , the initiative should support establishment of the competence centres on semiconductors in each member state. these competence centres should provide a range of services to semiconductor stakeholders , with a particular focus on start-ups and smes , and represent an important vector for the development of skills. access to publicly funded infrastructure , such as pilot and testing facilities , and to the competence network , should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings , while smes can benefit from preferential access or reduced prices. such access , including for international research and commercial partners , can lead to broader cross-fertilisation and gains in know-how and excellence , while contributing to cost recovery. each competence centre should be an entry point to connect to other competence centres of the network. synergies with existing structures with similar objectives , such as european digital innovation hubs , should be encouraged. fifth , the commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘chips fund’) proposing both equity and debt solutions , including a blending facility under the investeu fund established by regulation (eu) 2021/523 of the european parliament and council53 , in close cooperation with the european investment bank group and together with other implementing partners such as national promotional banks and institutions. the ‘chips fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and smes as well as investments across the value chain , including for other companies in the semiconductor value chains. in this context , the european innovation council will provide further dedicated support through grants and equity investments to high risk , market creating innovators. while the initiative is established for the duration of the mff 2021-2027 , due consideration should be given to supporting the eu’s semiconductor ecosystem in the future as the strengthening of the eu’s semiconductor ecosystem will require a long-term and sustained effort.


### (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 which should be defined by the commission within 3 months of the adoption of the chips act. this means that when applying for the actions to be funded by the initiative , the ecic itself , and not individual entities forming the ecic , can be the applicant. the main aim of the ecic should be to encourage effective and structural collaboration between legal entities , including research and technology organizations. for this reason , the ecic has to involve the participation of at least three legal entities from three member states and be operated as a public-private sector consortium for a specific action. the setting up of ecic should not involve the actual setting up of a new union body and should not be targeted at one specific action under the initiative. it should address the gap in the union’s toolbox to combine funding from member states , the union budget and private investment for the purposes of implementing actions of the initiative. in particular , strong synergies can be attained through combined development of the different pilot lines in an ecic , pooling the union’s contribution with the collective resources of the member states and other participants. the budget of the ecic that would be made available by member states and private sector participants over its projected period of operation should respect the timeframes of the actions implemented under this initiative. the commission should not be directly a party in the consortium.


### (55) in order to facilitate a smooth , effective and harmonised implementation of this regulation , cooperation and the exchange of information , the european semiconductor board should be established. the european semiconductor board should provide advice to and assist the commission on specific questions. these should include providing advice on the chips for europe initiative to the public authorities board of the chips joint undertaking; exchanging information on the functioning of the integrated production facilities and open eu foundries; discussing and preparing the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products and addressing coordinated monitoring and crisis response. furthermore , the european semiconductor board should ensure the consistent application of this regulation , facilitate cooperation between member states as well as exchange of information on issues relating to this regulation. the european semiconductor board should support the commission in international cooperation in line with international obligations , including in information gathering and crisis assessment. in addition , the european semiconductor board should coordinate , cooperate and exchange information with other union crisis response and crisis preparedness structures with a view to ensure a coherent and coordinated union approach as regards crisis response and crisis preparedness measures for semiconductor crises. ### (55) in order to facilitate a smooth , effective and harmonised implementation of this regulation , cooperation and the exchange of information , the european semiconductor board should be established. the european semiconductor board should provide advice to and assist the commission on specific questions. these should include providing advice on the chips for europe initiative to the public authorities board of the chips joint undertaking; exchanging information on the functioning of the integrated production facilities and open eu foundries; discussing and preparing the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products and addressing coordinated monitoring and crisis response. furthermore , the european semiconductor board should ensure the consistent application of this regulation , facilitate cooperation between member states as well as exchange of information on issues relating to this regulation. the european semiconductor board should support the commission in international cooperation in line with international obligations , including in information gathering and crisis assessment. in addition , the european semiconductor board should coordinate , cooperate and exchange information with other union crisis response and crisis preparedness structures with a view to ensure a coherent and coordinated union approach as regards crisis response and crisis preparedness measures for semiconductor crises. the european semiconductor board should cooperate closely with the commission in identifying specific critical services , system and products in the semiconductor supply chain , and in accordance with article 19 of directive [proposal nis 2] , consult the commission in order to carry out a coordinated security risk assessment of the semiconductor supply chain aiming to enhance the resilience of the supply chain , the integrated security of components along the supply chain , and enable the achievement of strategic objectives in establishing a secure and robust semiconductor ecosystem in the union.


### 1. the general objective of the initiative is to support large-scale technological capacity building and innovation throughout the union to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union advanced design , systems integration and chips production capabilities , as well as contribute to the achievement of the twin digital and green transition. ### 1. the general objective of the initiative is to support large-scale technological capacity building and innovation throughout the union to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union advanced design , systems integration and chips production capabilities , as well as contribute to the achievement of the twin digital and green transition by improving their sustainability and their ability to protect against cybersecurity threats by developing green and cybersecurity credentials , in line with international standards and taking into account best practices.


### (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 via providing incentives to workers to address and overcome challenges regarding the acquisition and retention of talent.


### (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 via providing incentives to workers , to address challenges regarding the acquisition and retention of talent.


### 2. in order to reach security of supply in the union , member states may , without prejudice to articles 107 and 108 of the treaty , apply support schemes and provide for administrative support to integrated production facilities and open eu foundries in accordance with article 14. ### 2. in order to reach security of supply in the union , member states may , without prejudice to articles 107 and 108 of the treaty , apply support schemes and provide for administrative support to integrated production facilities and open eu foundries in accordance with article 14. support schemes shall be used to fill possible funding gaps in the semiconductor ecosystem and shall be necessary , appropriate and proportionate , without undue competition distortions , without duplicating or crowding out private investments , and its benefits shall be shared widely and without discrimination across the union’s economy.


### 3. the security of supply of semiconductors may be considered an imperative reason of overriding public interest within the meaning of article 6(4) and article 16(1)(c) of directive 92/43/eec and of overriding public interest within the meaning of article 4(7) of directive 2000/60. therefore , the planning , construction and operation of integrated production facilities and open eu foundries may be considered of overriding public interest , provided that the remaining other conditions set out in these provisions are fulfilled. ### 3. the provisions of this regulation shall be without prejudice to achieving the objectives under the european green deal.


### (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. these measures do not entail the harmonisation of national laws and regulations. in this regard , the union should reinforce its strategic autonomy by enhancing the competitiveness and resilience of the semiconductor technological and industrial base , whilst strengthening the innovation capacity of its semiconductor sector , reducing dependence on a limited number of third country companies and geographies , and strengthening its capacity to design and produce advanced components. the chips for europe initiative (the ‘initiative’) should support these aims by bridging the gap between europe’s advanced research and innovation capabilities and their sustainable industrial exploitation. it should promote capacity building to enable design , production and systems integration in next generation semiconductor technologies , enhance collaboration among key players across the union , strengthening europe's semiconductor supply and value chains , and support the reinforcement and development of skills and a qualified workforce , serving key societal objectives and creating new markets.


### (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 security of supply and to a resilient ecosystem in the internal market and , where appropriate , the global 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. in terms of environmental performance , gains or innovative elements can include a quantifiable reduction of the amount of energy , water or chemicals used , or an increase in the recyclability of materials. 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.


### (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 an industrial facility capable of semiconductor manufacturing , including front-end or back-end , or both , that is not substantively already present or committed to be built within the union , for instance with regard to the technology node , substrate material , such as silicon carbide and gallium nitride , and other product innovation that can offer better performance , process innovation or energy and environmental performance , such as reducing the amount of energy and water used in the semiconductor manufacturing process;


### (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 as well as other significant energy and environmental gains , such as enhancing the semiconductor recyclability;


### (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 the union in offering significant improvements in computing power or energy efficiency as well as other significant energy and environmental gains;


### building advanced technology and engineering capacities for accelerating the innovative development of quantum chips. ### building advanced technology and engineering capacities for accelerating the innovative development of quantum technologies.


### advanced technology and engineering capacities for quantum chips; ### advanced technology and engineering capacities for quantum technologies;


### 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 and other related tasks funded under the initiative a european chips infrastructure consortium (‘ecic’) shall be established under the conditions set out in this article.


### 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. 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 first-of-a-kind semiconductor design and manufacturing facilities , including front-end or back-end , or both , in the union that contribute to the security of supply for the internal market and , where appropriate , the global market.


### 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;


### it commits to invest in the next generation of chips. ### it commits to invest in the next generation of chips , such as recycled and recyclable chips , and quantum technologies.


### it commits to invest in the next generation of chips. ### it commits to invest in the next generation of chips across the member states.


### 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 next generation of chips and quantum technologies according to paragraph 2 , point (d) , the integrated production facility shall have priority access to the pilot lines set up in accordance with article 5 , point (b). any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings.


### 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 first-of-a-kind semiconductor front-end or back-end , or both , manufacturing facilities in the union that offer production capacity to unrelated undertakings and thereby contribute to the security of supply for the internal market and , where appropriate , the global market.


### 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 , 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;


### 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 next generation of chips and quantum technologies according to paragraph 2 , point (d) , the open eu foundry shall have priority access to the pilot lines set up in accordance with article 5 , point (b). any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings.


### 1. a semiconductor crisis shall be considered to occur when there are serious disruptions in the supply of semiconductors leading to significant shortages , which: ### 1. a semiconductor crisis shall be considered to occur when there are serious disruptions in the semiconductor supply chain , leading to significant shortages of semiconductors , intermediate products or raw and processed materials , at any link of the semiconductor value chain , which prevent the supply , repair and maintenance of essential products of the semiconductor supply chain itself to the extent that it affects the normal functioning of critical sectors:


### entail significant delays or significant negative effects on one or more important economic sectors in the union , or ### deleted


### prevent the supply , repair and maintenance of essential products used by critical sectors. ### deleted


### 4. the commission may appoint observers to take part in the meetings , as appropriate. the commission may invite experts with specific expertise , including from relevant stakeholder organisations , with respect to a subject matter on the agenda to take part in the meetings of the european semiconductor board on an ad hoc basis. the commission may facilitate exchanges between the european semiconductor board and other union bodies , offices , agencies and advisory groups. the commission shall invite a representative from the european parliament as an observer to the european semiconductor board. the commission shall ensure the participation of relevant other union institutions and bodies as observers to the european semiconductor board with respect to meetings concerning chapter iv on monitoring and crisis response. observers and experts shall not have voting rights and shall not participate in the formulation of opinions , recommendations or advice of the european semiconductor board and its sub-groups. ### 4. the commission shall appoint observers to take part in the meetings , as appropriate. the commission shall invite experts with specific expertise , including from relevant stakeholder organisations , with respect to a subject matter on the agenda to take part in the meetings of the european semiconductor board on an ad hoc basis. the commission may facilitate exchanges between the european semiconductor board and other union bodies , offices , agencies and advisory groups. the commission shall invite a representative from the european parliament as an observer to the european semiconductor board. the commission shall ensure the participation of relevant other union institutions and bodies as observers to the european semiconductor board with respect to meetings concerning chapter iv on monitoring and crisis response. observers and experts shall not have voting rights and shall not participate in the formulation of opinions , recommendations or advice of the european semiconductor board and its sub-groups.


### 2. the commission and member states may exchange , where necessary , confidential information with competent authorities of third countries with which they have agreed on bilateral or multilateral confidentiality arrangements to provide an adequate level of confidentiality. ### 2. the commission and member states may exchange , where necessary , confidential information with competent authorities of third countries with which they have agreed on bilateral or multilateral confidentiality arrangements to provide the highest level of confidentiality.


### (18) in order to encourage the establishment of the necessary manufacturing and related design capabilities , and thereby ensure the security of supply in the union , public support may be appropriate. in that respect , it is necessary to set out the criteria for facilitating the implementation of specific projects that contribute to achieving the objectives of this regulation and distinguish between two types of facilities , namely: integrated production facilities and open eu foundries. ### (18) in order to encourage the establishment of the necessary manufacturing and related design capabilities , and thereby ensure the security of supply in the union , private investment in these facilities will likely require public support. in that respect , it is necessary to set out the criteria for facilitating the implementation of specific projects that contribute to achieving the objectives of this regulation and distinguish between two types of facilities , namely: integrated production facilities and open eu foundries. strong safeguards should be laid down for these public support schemes to ensure that they are necessary , appropriate and proportionate , without undue competition distortions , and that its benefits will be shared widely and without discrimination across the union’s economy.


### (21) in order to qualify as integrated production facilities or open eu foundries , the establishment and operation of the facility should have a clear positive impact on the semiconductor value chain in the union , in particular with regard to providing a resilient supply of semiconductors to users on the internal market. the impact on several member states , including cohesion objectives , should be considered as one of the indicators of a clear positive impact of an integrated production facility and open eu foundry on the semiconductor value chain in the union. ### (21) in order to qualify as integrated production facilities or open eu foundries , the establishment and operation of the facility should have a clear positive impact on the semiconductor value chain in the union , in particular with regard to providing a resilient supply of semiconductors to users on the internal market and its positive impact on the innovation potential of smes. the impact on several member states , including cohesion objectives , should be considered as one of the indicators of a clear positive impact of an integrated production facility and open eu foundry on the semiconductor value chain in the union. they should equally contribute to the reinforcement of a qualified workforce and the green transition. the commission should issue guidance to assess these positive impacts.


### creating a network of competence centres across the union , in order to ### creating a network of competence centres across the union , by creating new or enhancing existing facilities , in order to


### developing and managing specific training actions on semiconductor technologies to support the development of the talent pool in the union. ### developing and managing specific training actions on semiconductor technologies to support the development of the talent pool in the union , including but not limited to increase the stem studies awareness among young population , promoting the reskilling of current workers , and fostering placements and short stays of students and researchers in the industry.


### 1. member states shall ensure that administrative applications related to the planning , construction and operation of integrated production facilities and open eu foundries are processed in an efficient and timely manner. to that end , all national authorities concerned shall ensure that the most rapid treatment legally possible is given to these applications. ### 1. member states shall ensure that administrative applications related to the planning , construction and operation of integrated production facilities and open eu foundries are processed in an efficient , transparent and timely manner. to that end , all national authorities concerned shall assess applications and provide investors with final and binding information as regards the financial support of their proposal , within six months of their application , to allow them to make adequate risk and investment assessments.


### 1. member states shall ensure that administrative applications related to the planning , construction and operation of integrated production facilities and open eu foundries are processed in an efficient and timely manner. to that end , all national authorities concerned shall ensure that the most rapid treatment legally possible is given to these applications. ### 1. member states shall ensure that administrative applications related to the planning , construction and operation of integrated production facilities and open eu foundries are processed in an efficient and timely manner. to that end , all national authorities concerned should provide binding information on investment support to investors within six months of their application , to allow them to make adequate risk and investment assessments.


### (1) building up an innovative virtual platform , available across the union , integrating existing and new design facilities with extended libraries and electronic design automation (eda) tools; ### (1) building up an innovative and transparent virtual platform , available across the union , integrating existing and new design facilities with extended libraries and electronic design automation (eda) tools;


### pilot lines for preparing innovative production , and testing and experimentation facilities; ### pilot lines for preparing innovative sustainable production , and testing and experimentation facilities;


### facilitating the transfer of expertise and knowhow between member states and regions encouraging exchanges of skills , knowledge and good practices and encouraging joint programmes; ### facilitating the transfer of expertise and knowhow between member states and regions encouraging exchanges of skills , knowledge and good practices and encouraging joint programmes involving international partners and attracting international high skilled talent


### 3. the european semiconductor board shall support the commission in international cooperation , including information gathering and crisis assessment , in line with international obligations. ### 3. the european semiconductor board shall support the commission in international cooperation , including information gathering and crisis assessment , in line with international obligations involving , where appropriate , relevant third countries and within relevant international fora.


### a. whereas the recent external shocks caused by violent conflicts , pandemics and arbitrary disruptions of supply chains have tested the resilience of economies worldwide; whereas the eu’s economy has shown itself to be highly dependent on 137 products , in particular those related to energy and raw materials , medicines and health products , cutting-edge and cloud technologies , batteries and semiconductors; ### a. whereas the recent external shocks caused by violent conflicts , pandemics and arbitrary disruptions of supply chains have tested the resilience of economies worldwide; whereas the eu’s economy has shown itself to be highly dependent on 137 products , in particular those related to energy and raw materials , some products for agricultural production such as fertilisers , medicines and health products , cutting-edge and cloud technologies , batteries and semiconductors;


### 1. welcomes the new eu action plan on critical raw materials and stresses that eu trade policy can play a key role as a vehicle for improving eu access to these materials; notes that the covid-19 outbreak has exposed the lack of resilience of global value chains for certain key products , showing the need for more robust and resilient supply chains for critical raw materials; ### 1. welcomes the new eu action plan on critical raw materials and stresses that eu trade policy can play a key role as a vehicle for improving eu access to these materials while promoting sustainable standards , good governance and responsible sourcing; notes that the covid-19 outbreak has exposed the lack of resilience of global value chains for certain key products , showing the need for more robust , sustainable and resilient supply chains for critical raw materials;


### 2. notes that demand for raw materials is projected to double by 2050 and that the eu is highly reliant on non-eu countries for critical raw materials , making diversified sourcing essential to increase the eu’s security of supply; calls , therefore , on the commission to diversify the supply sources of critical raw materials as much as possible , and reduce current reliance on a few countries; calls on the commission to focus also on securing supplies by establishing strategic stocks and appropriate stockpiling of critical raw materials in europe , particularly in light of the uncertainties linked to the evolution of the geopolitical situation worldwide and the potential trade tensions with rich non-eu producer countries; ### 2. notes that demand for raw materials is projected to double by 2050 and that the eu is highly reliant on non-eu countries for critical raw materials , making diversified sourcing essential to increase the eu’s security of supply; notes that some critical raw materials' highest storages are in third countries with undemocratic regimes , which use the european union's needs as an asset for their will; calls , therefore , on the commission to diversify the supply sources of critical raw materials as much as possible , and reduce current reliance on a few countries , some of them highly undemocratic; calls on the commission to focus also on securing supplies by establishing strategic stocks and appropriate stockpiling of critical raw materials in europe , particularly in light of the uncertainties linked to the evolution of the geopolitical situation worldwide and the potential trade tensions with rich non-eu producer countries;


### 2. notes that demand for raw materials is projected to double by 2050 and that the eu is highly reliant on non-eu countries for critical raw materials , making diversified sourcing essential to increase the eu’s security of supply; calls , therefore , on the commission to diversify the supply sources of critical raw materials as much as possible , and reduce current reliance on a few countries; calls on the commission to focus also on securing supplies by establishing strategic stocks and appropriate stockpiling of critical raw materials in europe , particularly in light of the uncertainties linked to the evolution of the geopolitical situation worldwide and the potential trade tensions with rich non-eu producer countries; ### 2. notes that demand for raw materials is projected to double by 2050 , given the important and ongoing transition to a green and digital economy , and that the eu is highly reliant on non-eu countries for critical raw materials , making diversified sourcing essential to increase the eu’s security of supply; calls , therefore , on the commission to diversify the supply sources of critical raw materials as much as possible , and reduce current reliance on a few countries by not only developing mining capabilities but also processing , refining and recycling facilities; calls on the commission to focus also on securing supplies by establishing strategic stocks and appropriate stockpiling of critical raw materials in europe , particularly in light of the uncertainties linked to the evolution of the geopolitical situation worldwide and the potential trade tensions with rich non-eu producer countries;


### 2. asks the commission to set ambitious product design requirements for easy removal of crms; calls for ambitious minimum recycled crm content targets; requests that the commission propose new collection schemes to increase collection rates of waste products containing crms; asks the commission to propose dedicated recycling targets for crms , by extending the approach suggested in the proposal for a regulation on batteries and waste batteries (com(2020)0798) to other product groups; ### 2. asks the commission to set ambitious product design requirements for easy removal of crms; calls for ambitious minimum recycled crm content targets; requests that the commission propose new collection schemes to increase collection rates of waste products containing crms; asks the commission to propose dedicated recycling targets for crms , by extending the approach suggested in the proposal for a regulation on batteries and waste batteries (com(2020)0798) to other product groups , to improve resource circularity and efficiency;


### 3. underlines that future eu free trade agreements (ftas) should include a specific focus on raw materials; calls on the commission to further enhance the enforcement of ftas to ensure that commitments and obligations on sourcing of critical raw materials are met by trading partners; calls on the commission to strengthen cooperation on sustainable sourcing of raw materials with third countries under existing eu policies and instruments , including enlargement , neighbourhood , development and cooperation policies; ### 3. underlines that future eu free trade agreements (ftas) should include a specific raw materials chapter , as announce in the trade for all strategy by the commission , to ensure compliance with international commitments , to eliminate export restrictions and to comply with the current rules for pre and post establishment for foreign direct investments; calls on the commission to further enhance the enforcement of ftas to ensure that commitments and obligations on sourcing of critical raw materials are met by trading partners , in full respect with the rights of communities affected by extractive activities , as well as the social and environmental consequences of trade; calls on the commission to strengthen cooperation on sustainable sourcing of raw materials with third countries under existing eu policies and instruments , including enlargement , neighbourhood , development and cooperation policies;


### 3. calls on the commission and the european raw materials alliance to prioritise crm extraction from existing mines and waste dumps over new mining; requests that the commission assess whether current due diligence and environment rules are sufficient to guarantee minimal environmental impact of potential new mining projects in the eu; ### 3. calls on the commission and the european raw materials alliance to prioritise crm extraction from existing mines and waste dumps over new mining; requests that the commission assess whether current due diligence and environment rules are sufficient to guarantee minimal environmental impact of potential new mining projects in the eu , and to ensure reclamation once mining activities are completed;


### 4. believes that mining permits should include requirements for the proper recovery of all crms; requests that the commission urgently implement parliament’s demands in its resolution of 27 april 2017 on implementation of the mining waste directive2 ; ### 4. believes that mining permits should include requirements and targets for the proper recovery of all crms; requests that the commission urgently implement parliament’s demands in its resolution of 27 april 2017 on implementation of the mining waste directive[1];[1] oj c 298 , 23.8.2018 , p. 132.


### 6. believes that mining should be forbidden in nature conservation areas; calls on the commission to evaluate legislative options to ensure that local communities are fully involved in the permit procedures for new industrial and new mining projects. ### 6. believes that mining should be forbidden in nature conservation areas and that restoration should be obligatory for the ongoing mining activities in these areas; calls on the commission to evaluate legislative options to ensure that local communities are fully involved in the permit procedures for new industrial and new mining projects.


### 1. recalls that the damage to the planet’s biodiversity is almost at the point of no return and that biodiversity loss is a driver of zoonotic pathogens such as covid-19; highlights the scientific evidence on the role of trade in biodiversity loss , in particular with regard to trade in minerals , biomass and certain agricultural commodities , and biodiversity loss due to land-use changes , invasive alien species , overexploitation of resources and pollution; ### 1. recalls that the damage to the planet’s biodiversity is almost at the point of no return and that biodiversity loss is a driver of zoonotic pathogens such as covid-19; recalls that environmental externalities made by trade are a visible symptom of no country can bring about impact equality in their own economy; highlights the scientific evidence on the role of trade in biodiversity loss , in particular with regard to trade in minerals , biomass and certain agricultural commodities , and biodiversity loss due to land-use changes , invasive alien species , overexploitation of resources and pollution; urges the commission to introduce the principles of one health and health in all policies also in trade-related policies and legislative measures;


### 1. stresses that the degradation of ecosystems and the stress on them caused by climate change is leading to the extinction of species and the loss of biodiversity at unprecedented rates and is threatening the human rights of current and future generations , such as the rights to life , health , food , water and sanitation , as well as the rights of the most vulnerable people , including women and children , the rights of indigenous peoples and the rights of rural and natural-resource-dependent communities; also emphasises that the degradation of and stress on ecosystems is undermining progress towards the achievement of most of the 2030 sustainable development goals , in particular the objectives of ending poverty and hunger , achieving food security and ensuring healthy lives; ### 1. stresses that the degradation of ecosystems and the stress on them caused by climate change is leading to the extinction of species and the loss of biodiversity at unprecedented rates and is threatening the human rights of current and future generations , such as the rights to life , health , food , water and sanitation , as well as the rights of the most vulnerable people , including women and children , the rights of indigenous peoples and the rights of rural and natural-resource-dependent communities; also emphasises that the degradation of and stress on ecosystems is undermining progress towards the achievement of most of the 2030 sustainable development goals , in particular the objectives of ending poverty and hunger , achieving food security and ensuring healthy lives; is opposed to the creation of the concept of ‘climate refugees’ as an additional pretext to justify large-scale , illegal immigration;


### 4. welcomes the intention of the commission to develop a new european biodiversity governance framework and to follow an inclusive approach involving civil society in a compliance watchdog role to monitor the implementation of eu environmental legislation; also welcomes its aim to put forward a new initiative in 2021 on sustainable corporate governance to address human rights and environmental due diligence across economic value chains; insists in this regard on the need to elaborate eu legislation for mandatory human rights and environmental due diligence for eu companies , eu-domiciled companies and third-country companies operating in the internal market , imposing legal obligations to identify , cease , prevent and mitigate adverse impacts throughout their supply chains and establishing effective monitoring and enforcement mechanisms; ### 4. welcomes the intention of the commission to develop a new european biodiversity governance framework and to follow an inclusive approach involving civil society in a compliance watchdog role to monitor the implementation of eu environmental legislation; also welcomes its aim to put forward a new initiative in 2021 on sustainable corporate governance to address human rights and environmental due diligence across economic value chains;


### 5. stresses that deforestation and land-grabbing by large corporations has an enormous impact on indigenous peoples and local communities; calls on businesses to recognise their rights and to ensure their effective participation in decision-making regarding their lands , in accordance with the united nations guiding principles on business and human rights and the organisation for economic co-operation and development’s due diligence guidance for responsible business conduct; ### 5. stresses that deforestation and land-grabbing by large corporations has an enormous impact on indigenous peoples and local communities; underlines the importance of sustainable forest management for the health , climate resilience and longevity of forest ecosystems and as the most effective framework tool for the preservation of the multifunctional role of forests including maintaining and improving forest biodiversity; calls on businesses to recognise their rights and to ensure their effective participation in decision-making regarding their lands , in accordance with the united nations guiding principles on business and human rights and the organisation for economic co-operation and development’s due diligence guidance for responsible business conduct;


### 6. calls on the commission to mainstream biodiversity as a human right in eu external action and promote ambitious biodiversity-related policies in international fora , in accordance with the european green deal and the new eu biodiversity strategy; also calls on the commission to deal with cooperation issues related to the conservation of biodiversity and respect for international environmental and human rights obligations in a common and consistent way , in particular through eu international comprehensive and sectoral agreements and political dialogues with partner countries; urges the commission , in this regard , to make the most of human rights and sustainable development impact assessments and related recommendations; also calls on the commission to draw up guidelines on the human right to a clean , healthy , safe and sustainable environment; ### 6. calls on the commission to mainstream biodiversity as a human right in eu external action and promote ambitious biodiversity-related policies in international fora , in accordance with the new eu biodiversity strategy; also calls on the commission to deal with cooperation issues related to the conservation of biodiversity and respect for international environmental and human rights obligations in a common and consistent way , in particular through eu international comprehensive and sectoral agreements and political dialogues with partner countries; urges the commission , in this regard , to make the most of human rights and sustainable development impact assessments and related recommendations; also calls on the commission to draw up guidelines on the human right to a clean , healthy , safe and sustainable environment; underlines that the european union’s trade policy , which aims to multiply mega agreements whilst minimising all possible limits , constitutes a large-scale attack on the environment and does not contribute to the aim of achieving zero-carbon economies;


### 8. calls on the representatives of the eu and the member states who will participate in the conference of the parties to the convention on biological diversity (cop 15) in may 2021 in kunming , china , to advocate for biodiversity and ensure that global action on biodiversity and related objectives are linked to respect for the rights to life , health , food and water , as well as the human rights of women and children; strongly supports , in this regard , the integration of human rights in the cop 15 post-2020 global biodiversity framework and calls for the establishment of nature conservation objectives at global and national level , building on the right to a clean , healthy , safe and sustainable environment; ### 8. calls on the representatives of the eu and the member states who will participate in the conference of the parties to the convention on biological diversity (cop 15) in may 2021 in kunming , china , to advocate for biodiversity and ensure that global action on biodiversity and related objectives are linked to respect for the rights to life , health , food and water , as well as the human rights of women and children; strongly supports , in this regard , the integration of human rights in the cop 15 post-2020 global biodiversity framework and calls for the establishment of nature conservation objectives at global and national level , building on the right to a clean , healthy , safe and sustainable environment; stresses that encouraging large-scale , illegal immigration represents a major obstacle to safeguarding the environment , sustainable development and resource-monitoring;


### 1. welcomes the mainstreaming of the european green deal into the communication on the trade policy review (tpr) and calls for a concrete action plan to make this ambition a reality; ### 1. welcomes the mainstreaming of the european green deal into the communication on the trade policy review (tpr) and calls for a concrete action plan to make this ambition a reality , taking into account the european union's geographical position and its commitment and courage embracing the digital and green transitions , setting new standards in terms of the sustainable development chapters of the free trade agreements signed with new trading partners;


### 2. welcomes the incorporation of the paris agreement as an essential element in all trade , investment and partnership agreements; stresses that ratification of the international labour organization (ilo) core conventions and respect for human rights are requirements for concluding ftas; asks for ambitious chapters on gender and on small and medium-sized enterprises (smes) to be included in all trade agreements; ### 2. welcomes the incorporation of the paris agreement as an essential element in all trade , investment and partnership agreements; stresses that ratification of the international labour organization (ilo) core conventions and respect for human rights are requirements for concluding ftas; asks for ambitious chapters on gender and on small and medium-sized enterprises (smes) to be included in all trade agreements; considers that the health in all policies principle , as well as the one health approach , should also be an integral part of the union's trade agreements with third countries;


### 2. calls on the commission to mount an assertive and coordinated international trade policy response geared towards a multilateral , resilient and sustainable recovery in developing countries; calls on the commission to deepen eu-africa trade relations through economic partnership agreements , while making the most of the eu’s aid for trade strategy; ### 2. calls on the commission to mount an assertive and coordinated international trade policy response geared towards a multilateral , resilient and sustainable recovery in developing countries; calls on the commission to deepen eu-africa trade relations through economic partnership agreements , while making the most of the eu’s aid for trade strategy; calls on the commission and members states to boost their targeted support for pan-african and sub-regional trade integration arrangements and to ensure that their financial and technical assistance responds to african needs and priorities at all levels , helps to foster regional value chains and production networks , diversify their productive capacities and integrate into regional and global value chains;


### 7. calls on the commission to collaborate with developing partner countries in order to facilitate digital infrastructure , establish policy strategies and harmonise regulatory frameworks for e-commerce. ### 7. calls on the commission to collaborate with developing partner countries in order to facilitate digital infrastructure , establish policy strategies and harmonise regulatory frameworks for e-commerce; underlines the need for eu development cooperation to contribute to ensuring that populations have general broadband internet access at affordable prices in ldcs;


### 1. notes that the european union needs to take urgent steps to close the gap with the us and china to be at the forefront of ensuring a competitive data-driven global economy; ### 1. notes that the european union needs to take urgent steps to close the gap with the us and china to be at the forefront of ensuring a competitive data-driven global economy; notes that the union should close a bilateral investment agreement with the republic of china (taiwan) and look for measures to help citizens from hong kong to settle in the union as a way to ensure their social , civic and political rights; considers that the commission should review export controls in case they apply to the xinjiang province in order to ensure the union is doing all it can to prevent the exports of goods that may contribute to human rights abuses in that province; stresses that this review should determine which additional specific products will be subject to export controls in the future;


### 1. recalls that ai should be used in a fair and ethical manner and with due respect for union values and principles , human rights , freedom of expression , the right to privacy , data protection , non-discrimination , media pluralism and cultural diversity; ### 1. recalls that ai should be used in a fair and ethical manner and with due respect for union values and principles , human rights , freedom of expression , the right to privacy , data protection , non-discrimination , media pluralism and cultural diversity; notes that while ai offers great potential , it can also present certain risks due to issues such as bias and opacity , the manipulation of individual behaviour , violation of privacy , the identification/forecasting of sensitive identity traits and emotion , enabling of mass surveillance , the restriction of access to vital public services , and reinforcing structural discrimination; stresses that in view of commercial activities on online market places , self-regulation provided to be insufficient and therefore , asks the commission to introduce strong safeguards and obligations for product safety and consumer protection for commercial activities on online market places , accompanied by a tailored liability regime with proper enforcement mechanisms;


### 1. highlights that european leadership can be a reality; notes that a second wave of digitalisation lies ahead; underlines that a common eu approach can make europe the most innovative region in the world by 2030; ### 1. highlights that european leadership can be a reality; establishes the ambition to make the eu a world leader in digital innovation and artificial intelligence (ai) development; notes that a second wave of digitalisation lies ahead; underlines that a common eu approach can make europe the most innovative region in the world by 2030; highlights that digital transformation encompasses all policy areas and is boundless by nature; emphasizes that ai deployment by european industries is key to economic growth and innovations , enhances security and resilience , and strengthens the geopolitical and strategic relevance of the eu;


### 1. highlights that european leadership can be a reality; notes that a second wave of digitalisation lies ahead; underlines that a common eu approach can make europe the most innovative region in the world by 2030; ### 1. highlights that european leadership can be a reality; notes that a second wave of digitalisation lies ahead; underlines that a common eu approach can make europe the most innovative region in the world by 2030; stresses that digital revolution must contribute to sustainable development and benefit all citizens , while balancing the economic , ethical and environmental dimensions; further recognises that ai is an engine for sustainable transformation;


### 2. strongly supports multilateral solutions for digital trade rules and calls for the plurilateral wto negotiations on e-commerce to be concluded; regrets that , in the absence of global rules , eu companies are faced with non-tariff barriers in digital trade such as unjustified data localisation and mandatory technology transfer requirements; supports making the wto moratorium on electronic transmissions permanent; ### 2. strongly supports multilateral solutions for digital trade rules and calls for the plurilateral wto negotiations on e-commerce to be concluded; regrets that , in the absence of global rules , eu companies are faced with non-tariff barriers in digital trade such as unjustified data localisation and mandatory technology transfer requirements; supports making the wto moratorium on electronic transmissions permanent; considers that digitalization greatly benefits supply chains and trade;


### 2. believes that the principles underlying the eu’s approach to digitalisation should be based on fundamental rights , consumer protection and data protection; ### 2. believes that the principles underlying the eu’s approach to digitalisation should be based on fundamental rights , consumer protection and data protection; and that eu’s approach should also take into account the challenge that digitalisation represents for regional and minority languages;


### 2. highlights that the transport sector will be a test case for the uptake of ai technologies by european consumers; shares the commission’s view , therefore , that a clear european framework would build trust in ai among consumers and businesses; ### 2. highlights that the transport sector will be a test case for the uptake of ai technologies by european consumers; shares the commission’s view , therefore , that a clear european framework would build trust in ai among consumers and businesses and ensure predictability and legal certainty;


### 2. recognises that the eu has an enormously strong sme sector; recalls that this second wage of digitalisation could lead to a strong industrial development of smes; calls for a goal of 500 digital unicorns within 10 years; ### 2. recognises that the eu has an enormously strong sme sector; notes that the successful digital transformation of european smes is vital for economic growth , job-creation , and social cohesion; recalls that this second wave of digitalisation could lead to a strong industrial development of smes; calls for comprehensive measures , such as access to finance , introduction of the eu start-up visa , and reduction of regulatory burden , to better facilitate the growth of digital unicorns in europe; notes that these measures should be developed in constant dialogue with relevant stakeholders;


### 2. recognises that the eu has an enormously strong sme sector; recalls that this second wage of digitalisation could lead to a strong industrial development of smes; calls for a goal of 500 digital unicorns within 10 years; ### 2. recognises that the eu has an enormously strong sme sector; recalls that this second wave of digitalisation could lead to a strong industrial development of smes; reinforces the need to accelerate the digitalisation of smes and help them overcome barriers in adopting ai applications; calls for a goal of 500 digital unicorns within 10 years;


### 3. believes that digitalisation and technologies such as ai will be important for achieving the objectives of the green deal and for economic recovery from the covid-19 crisis; considers that the covid-19 crisis also offers an opportunity to speed up digitalisation , and that the digital transformation must serve the public interest overall; ### 3. believes that digitalisation and emerging technologies such as ai will be important for achieving the objectives of the green deal and for economic recovery from the covid-19 crisis; considers that the covid-19 crisis also offers an opportunity to speed up digitalisation , and that the digital transformation must serve the public interest overall;


### 3. deplores the omission of culture from ai strategies and policy recommendations at both national and union level; stresses the need to set up a clear legal framework that prioritises culture in order to bring the union to the forefront of ai-driven innovation and value creation worldwide and to maximise its benefits , while assessing its potential risks for society; ### 3. deplores the omission of culture from ai strategies and policy recommendations at both national and union level; stresses the need to set up a clear legal framework that prioritises culture , education and sports , without discrimination , in order to bring the union to the forefront of ai-driven innovation and value creation worldwide and to maximise its benefits , while assessing its potential risks for society; underlines the role of ai to preserve and boost the european culture and language diversity; underlines that data sets used by ai systems (both for training and operation) may suffer from the inclusion of inadvertent historic bias , incompleteness and bad governance models; stresses that the continuation of such biases could lead to unintended (in)direct prejudice and discrimination against certain groups or people , potentially exacerbating prejudice and marginalisation;


### 3. emphasises that the covid crisis provides an opportunity to speed up digitalisation; calls for financial incentives for smes that want to enter new markets; ### 3. emphasises that the covid crisis provides an opportunity to speed up digitalisation; calls for financial incentives for smes that want to enter new markets; calls for new and open frameworks of access to data for european smes and start-ups in order to support their growth by empowering the training , testing and development of ai-enabled systems and applications. calls for an inclusive digitisation of our societies that will serve the interests of the citizens by taking into account accessibility and affordability considerations. calls for coordinated actions to address europe’s digital divide that has been worsened due to the covid and for a fair and cooperative digital modernisation of the public sector that would aim at a value-based digital transformation by promoting fundamental rights and democratic values.


### 3. emphasises that the covid crisis provides an opportunity to speed up digitalisation; calls for financial incentives for smes that want to enter new markets; ### 3. emphasises that the covid crisis provides an opportunity to speed up digitalisation; calls for public-private partnerships and financial incentives for innovative digital smes , mid-caps , and start-ups that want to enter new markets; calls for the reinforcement of and clearer strategy for the european digital innovation hubs in order to help widespread uptake of new technologies by smes; recognizes the potential of intermediaries in the sme ecosystem , such as accountants , chambers of commerce and insurance experts , in helping to foster the digital transition of smes;


### 3. emphasises that the covid crisis provides an opportunity to speed up digitalisation; calls for financial incentives for smes that want to enter new markets; ### 3. emphasises that the covid crisis provides an opportunity to speed up digitalisation; calls for financial incentives for smes that want to enter new markets; recognises the concern that large firms have better capabilities to take advantage of the opportunities provided by ai which could lead to overconcentration in the market of large firms and multinationals;


### 3. emphasises that the covid crisis provides an opportunity to speed up digitalisation; calls for financial incentives for smes that want to enter new markets; ### 3. emphasises that the covid crisis provides an opportunity to speed up digitalisation; calls for financial incentives for smes , start - ups and for companies and subjects of the social economy that want to enter new markets;


### 4. reminds the commission that any proposal on the digital single market should fully respect the eu’s international obligations , including wto and bilateral trade agreements; urges the commission to fully assess the geopolitical and strategic implications of its proposals; ### 4. reminds the commission that any proposal on the digital single market should fully respect the eu’s international obligations , including wto and bilateral trade agreements; urges the commission to fully assess the geopolitical and strategic implications of its proposals; urges the member states and the commission to promote interoperability between devices , applications , data repositories , services and networks , necessary to fully benefit from the deployment of information and communication technologies (icts) , also used in the trade sector by its users;


### 4. stresses that the need for clear rules on the sharing of responsibility in the event of a malfunction or accident is one of the crucial barriers to the practical deployment of ai-based technologies in the transport sector; calls for this responsibility to be shared according to the capacity of manufacturers , operators and users of autonomous vehicles and systems to control risks; ### 4. stresses that the need for clear rules on the determining and sharing of responsibility in the event of a malfunction or accident is one of the crucial barriers to the practical deployment of ai-based technologies in the transport sector; calls for this responsibility to be shared according to the capacity of manufacturers , operators and users of autonomous vehicles and systems to control risks;


### 4. emphasises that the transposition of the audiovisual media services directive (avmsd) into national law is crucial to achieving a genuine digital single market; urges the member states that have not yet done so to complete the transposition as soon as possible; stresses that the future digital services act (dsa) and any future regulation on ai , with particular regard to the cultural and creative sectors , should be in line with the principles and obligations of the avmsd; ### 4. emphasises that the transposition of the audiovisual media services directive (avmsd) into national law is crucial to achieving a genuine digital single market; urges the member states that have not yet done so to complete the transposition as soon as possible; stresses that the future digital services act (dsa) and any future regulation on ai , with particular regard to the cultural and creative sectors , should be in line with the principles and obligations of the avmsd and should respect the broad framework of fundamental european rights of users and consumers , such as the protection of privacy , data , non-discrimination , dignity , fairness and free speech;


### 4. calls for special economic digital zones to promote structural change and create development cores for new digital economic structures; ### deleted


### 5. welcomes the conclusion of the rules-based asian regional comprehensive economic partnership (rcep) agreement , which deepens the economic integration of the region; regrets , however , the lack of a robust sustainable development chapter in the rcep; believes that the conclusion of the rcep should encourage the eu to help set global rules for the digital economy; supports in this regard the establishment of an eu-us trade and technology council and the work on a transatlantic ai agreement to help facilitate trade and the development of compatible rules and standards in digital trade; ### 5. welcomes the conclusion of the rules-based asian regional comprehensive economic partnership (rcep) agreement , which deepens the economic integration of the region , integrates its supply chains , includes two of the world's three largest economies , harmonises rules-of-origin provisions , establishes a single set of regional content rules effectively creating a single market for immediate goods that will promote the creation and development of supply chains; regrets , however , the lack of a robust sustainable development chapter in the rcep and that it will provide modest demand boost for trade because most goods tariff reductions have already been provided for under existing trade agreements , while planned liberalisation of services trade is limited; believes that the conclusion of the rcep should encourage the eu to help set global rules for the digital economy; supports in this regard the establishment of an eu-us trade and technology council and the work on a transatlantic ai agreement to help facilitate trade and the development of compatible rules and standards in digital trade; welcomes the new us administration's new open stances with its european counterparts;


### 5. welcomes the conclusion of the rules-based asian regional comprehensive economic partnership (rcep) agreement , which deepens the economic integration of the region; regrets , however , the lack of a robust sustainable development chapter in the rcep; believes that the conclusion of the rcep should encourage the eu to help set global rules for the digital economy; supports in this regard the establishment of an eu-us trade and technology council and the work on a transatlantic ai agreement to help facilitate trade and the development of compatible rules and standards in digital trade; ### 5. the conclusion of the regional comprehensive economic partnership (rcep) agreement has created the largest economic integration in the world; this emphasises the importance for the eu to take the lead in setting global rules for the digital economy; supports in this regard the establishment of an eu-us trade and technology council and the work on a transatlantic ai agreement to help facilitate trade and the development of compatible rules and standards in digital trade;


### 5. calls on the commission to follow the ‘one in , one out’ principle in its future legislative proposals , and to address the fragmentation of the digital single market , remove any existing unjustified barriers , and support innovation by reducing red tape; ### 5. calls on the commission to follow the ‘one in , one out’ principle in its future legislative proposals , and to avoid the fragmentation of the digital single market , remove any existing unjustified barriers in particular administrative burdens , and support innovation especially for smes;


### 5. notes that the achievement of the objectives set by the commission in its white paper on artificial intelligence depends on broad access to the public and raw data generated by the transport sector and the provision of intelligent infrastructure and vehicles for its safe collection and processing; ### 5. notes that the achievement of the objectives set by the commission in its white paper on artificial intelligence depends on broad access to the public and raw data generated by the transport sector and the provision of intelligent infrastructure and vehicles for its safe collection and processing , however adequate level of protection of personal data and of privacy must be ensured;