Debate: European Chips Act
Date: TUESDAY, 11 JULY 2023
Speaker: Dan Nica
Country: Romania
Language: EN

The negotiations outcome is a clear example that if there is a will, there is a way. And I say many thanks to all my colleagues, shadow rapporteurs and our teams, advisers and assistants for their excellent work. Thank you so much, Commissioner Breton. You are an honest broker. You did a very good job. Thank you so much to you and to your team because it was a very helpful exercise. Thank you so much for being so supportive. Why do we need a new Chips Act? The pandemic has revealed longstanding vulnerabilities in global supply chains, and the unprecedented shortage of semiconductors is a prime example. These shortages have led, among other issues, to rising costs for industry and higher prices for consumers, and have been slowing down the pace of recovery in Europe. Our aim is to fortify the EU position in the global semiconductor landscape and to address the vulnerabilities in supply chains exposed by the pandemic. We strive for more influence and leadership in research and innovation in this sector. We have secured EUR 3.3 billion for research and innovation. We aim to boost technological capacity and we are implementing measures to combat potential shortages. With the Chips Act legislation – which is to be in place already at the end of the summer – we expect to generate private and public investment that will go over EUR 100 billion. This is a clear statement: Europe is prepared to face the future challenges in the semiconductor industry, prioritising strategic autonomy and security in a favourable business environment. Some of the important points of the Chips Act are that we managed to secure EUR 3.3 billion for research and innovation related to chips. We increased the EU’s technological capacity, production and innovation. The EU Chips Act will strengthen Europe’s strategic autonomy and security. Businesses will benefit from a favourable environment for investment in Europe, both in terms of fast-tracking permit granting procedures and recognition as highest national significance status where such status exists. The ecosystem of semiconductors and the semiconductor value chain will be supported as the spillover effect is recognised in different sectors in countries. The network of competence centres that should be created will address the skills shortage and attract new talent for research, design and production. New production facilities will also play an important role in investing in and boosting the skilled workforce in Europe. SMEs are recognised to have an important role and will benefit from increased support, especially under the design part. In this sense, under the revised framework for State aid rules for research, development and innovation, maximum aid intensity up to the level of 80% may be allowed for aid for research and development projects of medium-size companies, and up to 90% may be allowed for those of small companies. Furthermore, in order to maximise synergies, competence centres established under the initiative that focus on state-of-the-art chip designs may apply to receive the label ‘design centre of excellence’. A crisis response mechanism in case of shortages will be set up, with the Commission assessing the risks to the EU supply of semiconductors and early warning indicators in Member States that could trigger an EU-wide alert. This will allow the Commission to implement emergency measures, such as prioritising the supply for products particularly affected or carry out common purchasing for Member States. The mapping mechanism will help to identify possible bottlenecks in the semiconductor sector. The measures under the toolbox, like the priority rated orders and the common purchasing mechanism, will be used as last resort measures and with enough guarantees that they will be triggered only when a semiconductor crisis, as defined in Article 18, is taking place. Intellectual property rights are also strengthened in order to have the right competitive advantage and protection for the sector.