BDI Position European Chips Act
Article 12 – Application First-of a-kind Summary of Paragraph
Evaluation
The Commission shall, in consultation with the European Semiconductor Board, choose and deselect the facilities. Facilities which are no longer Integrated Production Facilities and Open EU Foundries shall lose all rights linked to the recognition of this status arising from this Regulation.
We recommend clarifying the status of the European Semiconductor Board within the decision process. Moreover, it is not clear whether a loss of rights includes repayment obligations for state aid, that has already been granted.
Article 13, paragraph 2 and Article 14 – Public Interest and support & permit granting procedures Summary of Paragraphs
Evaluation
In order to reach security of supply in the Union, Member States may, without prejudice to the state aid provisions in 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 (each member state must have an authority for the facilities; facilities must have the most rapid treatment legally possible).
We welcome the article as the first-of-a-kind principle creates attractive framework conditions for establishing new production and development sites in Europe, which can have catalytic effects. We need to establish a level playing field in funding in regard to third countries and regions. This includes the introduction of efficient fast track procedures to enable a quick realisation. In order to create a global level playing field, Articles 13.2. and 14 create the necessary legal framework. It must be ensured, however, that the EU state aid framework remains intact and that a subsidy race inside the Single Market is avoided. A focus on international competitiveness is imperative for a proper investment review. Location factors such as infrastructure as well as energy and wage costs must be considered in this context. To avoid permanent subsidies, market-oriented viability in the medium to long term is required for all state support.
Chapter IV Pillar Three: Monitoring and crisis response Article 15, Paragraph 1-4 and Article 16 – Monitoring and early warning indicators Summary of Paragraphs
Evaluation
Member States shall carry out regular monitoring of the semiconductor value chain and report their findings to the European Semiconductor Board regularly. In particular, information from undertakings on significant fluctuations in demand and known disruptions, as well as an early warning for crisis are relevant. Therefore, the
Above all, a monitoring process for collecting information about the value chain makes sense in order to identify requirements and risks at an early stage. To do so, the process of setting up the necessary mechanisms and administration for monitoring by the Member States must be accompanied by consultations with user industries, associations and manufacturers. However, a quantitative monitoring mechanism based on
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