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EuropeanParliament

2019-2024

TEXTSADOPTED

P9_TA(2023)0266

EuropeanChipsAct

EuropeanParliamentlegislativeresolutionof11July2023ontheproposalfora

regulationoftheEuropeanParliamentandoftheCouncilEstablishingaframeworkof

measuresforstrengtheningEurope'ssemiconductorecosystem(ChipsAct)

(COM(2022)0046–C9-0039/2022–2022/0032(COD))

(Ordinarylegislativeprocedure:firstreading)

TheEuropeanParliament,

–havingregardtotheCommissionproposaltoParliamentandtheCouncil

(COM(2022)0046),

–havingregardtoArticle294(2)andArticles173(3)and114oftheTreatyonthe

FunctioningoftheEuropeanUnion,pursuanttowhichtheCommissionsubmittedthe

proposaltoParliament(C9-0039/2022),

–havingregardtotheopinionoftheCommitteeonLegalAffairsontheproposedlegal

basis,

–havingregardtoArticle294(3)oftheTreatyontheFunctioningoftheEuropeanUnion,

–havingregardtothereasonedopinionsubmitted,withintheframeworkofProtocolNo2

ontheapplicationoftheprinciplesofsubsidiarityandproportionality,bytheCzech

Senate,assertingthatthedraftlegislativeactdoesnotcomplywiththeprincipleof

subsidiarity,

–havingregardtotheopinionoftheEuropeanEconomicandSocialCommitteeof15

June20221,

–havingregardtotheopinionoftheCommitteeofRegionsof12October20222,

–havingregardtotheprovisionalagreementapprovedbythecommitteeresponsible

underRule74(4)ofitsRulesofProcedureandtheundertakinggivenbytheCouncil

representativebyletterof10May2023toapproveParliament’sposition,inaccordance

withArticle294(4)oftheTreatyontheFunctioningoftheEuropeanUnion,

1OJC365,23.9.2022,p.34.

2OJC498,30.12.2022,p.94.

–havingregardtoRules40and59ofitsRulesofProcedure,

–havingregardtotheopinionsoftheCommitteeontheInternalMarketandConsumerProtection,theCommitteeonLegalAffairs,theCommitteeonInternationalTrade,theCommitteeonBudgetsandtheCommitteeonEconomicandMonetaryAffairs,

–havingregardtothereportoftheCommitteeonIndustry,ResearchandEnergy(A9-0014/2023),

1.Adoptsitspositionatfirstreadinghereinaftersetout;

2.Approvesthejointpoliticalstatementannexedtothisresolution;

3.ApprovesthejointstatementbyParliamentandtheCouncilannexedtothisresolution;

4.CallsontheCommissiontoreferthemattertoParliamentagainifitreplaces,substantiallyamendsorintendstosubstantiallyamenditsproposal;

5.InstructsitsPresidenttoforwarditspositiontotheCouncil,theCommissionandthenationalparliaments.

P9_TC1-COD(2022)0032

PositionoftheEuropeanParliamentadoptedatfirstreadingon11July2023witha

viewtotheadoptionofRegulation(EU)2023/…oftheEuropeanParliamentandoftheCouncilestablishingaframeworkofmeasuresforstrengtheningEurope's

semiconductorecosystemandamendingRegulation(EU)2021/694(ChipsAct)

(TextwithEEArelevance)

THEEUROPEANPARLIAMENTANDTHECOUNCILOFTHEEUROPEANUNION,

HavingregardtotheTreatyontheFunctioningoftheEuropeanUnion,andinparticularArticle173(3)▌andArticle114thereof,

HavingregardtotheproposalfromtheEuropeanCommission,

Aftertransmissionofthedraftlegislativeacttothenationalparliaments,

HavingregardtotheopinionoftheEuropeanEconomicandSocialCommittee1,

HavingregardtotheopinionoftheCommitteeoftheRegions2,

Actinginaccordancewiththeordinarylegislativeprocedure3,

1OJC365,23.9.2022,p.34.

2OJC498,30.12.2022,p.94.

3PositionoftheEuropeanParliamentof11July2023.

Whereas:

(1)SemiconductorsareatthecoreofanydigitaldeviceandtheUnion’sdigital

transition:fromsmartphonesandcars,throughcriticalapplicationsand

infrastructuresinhealth,energy,communicationsandautomationtomostother

industrysectors.Assemiconductorsarecentraltothedigitaleconomy,theyare

powerfulenablersforthesustainabilityandgreentransition,contributingthusto

theobjectivesoftheCommissioncommunicationof11December2019on‘The

EuropeanGreenDeal’.Whilesemiconductorsareessentialtothefunctioningoftoday'seconomyandsocietyaswellasdefenceandsecurity,theUnionhas

witnessedunprecedenteddisruptionsintheirsupply,theconsequencesofwhicharesignificant.Thecurrentdisruptionshaveexposedlong-lastingvulnerabilitiesinthisrespect,inparticularastrongthird-countrydependencyinmanufacturinganddesignofchips.MemberStatesareprimarilyresponsibleformaintainingastrongindustrial,competitive,sustainablebaseintheUnionpromotinginnovationacross

afullrangeofchips.

(2)AframeworkforincreasingtheUnion’sresilienceinthefieldofsemiconductor

technologiesshouldbeestablished,reinforcingtheUnion’ssemiconductor

ecosystembyreducingdependencies,enhancingdigitalsovereignty,stimulating

investment,strengtheningthecapabilities,security,adaptabilityandresilienceoftheUnion’ssemiconductorsupplychain,andincreasingcooperationamongtheMemberStates,theCommissionandinternationalstrategicpartners.

(3)Thisframeworkpursuestwogeneralobjectives.ThefirstobjectiveistoensuretheconditionsnecessaryforthecompetitivenessandinnovationcapacityoftheUnion,toensuretheadjustmentoftheindustrytostructuralchangesduetofastinnovationcyclesandtheneedforsustainability,andtostrengthentheUnion-wide

semiconductorecosystemwithpooledknowledge,expertise,resourcesand

commonstrengths.Thesecondobjective,separatefromandcomplementarytothefirst,istoimprovethefunctioningoftheinternalmarketbylayingdownauniformUnionlegalframeworkforincreasingtheUnion’slong-termresilienceanditsabilitytoinnovateandprovidesecurityofsupplyinthefieldofsemiconductortechnologies

withaviewtoincreasingrobustnessinordertocounterdisruptions.

(4)ItisnecessarytotakemeasurestobuildcapacityandstrengthentheUnion’s

semiconductorecosysteminaccordancewithArticle173(3)oftheTreatyonthe

FunctioningoftheEuropeanUnion(TFEU).Thosemeasuresshouldnotentailthe

harmonisationofnationallawsandregulations.Inthisregard,theUnionshould

reinforcethecompetitivenessandresilienceofthesemiconductortechnologicalandindustrialbase,whilststrengtheningtheinnovationcapacityofitssemiconductor

ecosystemacrosstheUnion,reducingdependenceonalimitednumberofthird-

countrycompaniesandgeographies,andstrengtheningitscapacitytodesignand

produce,package,reuseandrecycleadvancedsemiconductors.TheChipsfor

EuropeInitiative(the‘Initiative’)establishedbythisRegulationshouldsupportthoseaimsbybridgingthegapbetweentheUnion’sadvancedresearchandinnovation

capabilitiesandtheirsustainableindustrialexploitation.TheInitiativeshould

promotecapacitybuildingtoenabledesign,productionandsystemsintegrationinnext-generationsemiconductortechnologies,andshouldenhancecollaborationamongkeyplayersacrosstheUnion,strengtheningtheUnion’ssemiconductor

supplyandvaluechains,servingkeyindustrialsectorsandcreatingnewmarkets.

(5)Duetotheubiquityofsemiconductors,therecentshortageshaveeitherdirectlyor

indirectlyadverselyaffectedbusinessesacrosstheUnionandinducedstrong

economicrepercussions.TheeconomicandsocialimpacthasledtoanincreasedconsciousnessofthepublicandofeconomicoperatorsandaresultingpressureforMemberStatestoaddressthestrategicdependenciesasregardssemiconductors.At

thesametime,thesemiconductorsectorischaracterisedbyinterdependencies

acrossthevaluechain,wherenosinglegeographydominatesallstepsofthevaluechain.Thiscross-bordernatureisfurtheremphasisedbythenatureof

semiconductorproductsasanenablerfordownstreamindustries.While

semiconductormanufacturingmaybeconcentratedinsomeregions,user

industriesarespreadoutacrosstheUnion.Againstthisbackground,thesecurity

ofsupplyofsemiconductorsandresilienceofthesemiconductorecosystemcanbebestaddressedthroughUnionharmonisinglawonthebasisofArticle114TFEU.A

singlecoherentregulatoryframeworkharmonisingcertainconditionsfor

operatorstocarryoutspecificprojectsthatcontributetothesecurityofsupplyand

resilienceoftheUnion’ssemiconductorecosystemisnecessary.Additionally,a

coordinatedmechanismformonitoring,strategicmapping,crisispreventionandresponse▌shouldbeestablishedtoaddressshortagesofsupplyandprevent

obstaclestotheunityoftheinternalmarket,avoidingdifferencesinresponse

amongMemberStates.

(6)StrengtheningtheUnion’scriticalinfrastructureandsecurityaswellasitstechnologicalleadershiprequiresbothleading-edgeandmaturechips,in

particularforfuture-proofingstrategicsectors.

(7)Theachievementofthoseobjectivesshouldbesupportedbyagovernance

mechanism.AtUnionlevel,thisRegulationshouldestablishaEuropean

SemiconductorBoard,composedofrepresentativesoftheMemberStatesand

chairedbytheCommission,tofacilitateasmooth,effectiveandharmonised

implementationofthisRegulation,cooperationandtheexchangeofinformation.TheEuropeanSemiconductorBoardshouldprovideadvicetoandassisttheCommissiononspecificquestions,includingtheconsistentimplementationofthisRegulation,

facilitatingcooperationamongMemberStatesandexchanginginformationonissuesrelatingtothisRegulation.TheEuropeanSemiconductorBoardshouldalsoadvise

theCommissiononinternationalcooperationrelatedtosemiconductors.The

EuropeanSemiconductorBoardshouldholdseparatemeetingsforitstasksunderthedifferentchaptersofthisRegulation.Thedifferentmeetingsmayincludedifferentcompositionsofthehigh-levelrepresentativesandtheCommissionmayestablish

subgroups.

(8)Giventheglobalisednatureofthesemiconductorsupplychain,international

cooperationwiththirdcountriesisanimportantelementtoachieveresilienceoftheUnion’ssemiconductorecosystem.TheactionstakenunderthisRegulationshouldalsoenabletheUniontoplayastrongerrole,asacentreofexcellence,inabetterfunctioningglobal,interdependentsemiconductorecosystem.Tothatend,the

EuropeanSemiconductorBoardshouldadvisetheCommissiononmatters

concerningcoordinatingthoseeffortsandenhancingcooperationalongtheglobalsemiconductorvaluechainbetweentheUnionandthirdcountries,consider,where

relevant,theviewsoftheIndustrialAllianceonProcessorsandSemiconductor

Technologiesandofotherstakeholders.

(9)Inaccordancewithinternationalobligationsandapplicableprocedural

requirementstheUnionandMemberStatescouldengage,including

diplomatically,withinternationalstrategicpartnersthathaveadvantagesinthe

semiconductorindustry,withaviewtoseekingsolutionstostrengthenthesecurityofsupplyandtoaddressfuturesupply-chaindisruptionsofsemiconductors,such

asthoseresultingfromthird-countryexportrestrictions,andtoidentifythe

availabilityofrawmaterialsandintermediateproducts.Thismayinvolve,where

appropriate,coordinationinrelevantinternationalfora,concludinginvestment

andtradeagreementsorotherdiplomaticeffortsinaccordancewiththeapplicable

proceduralrequirementsorengagementwithrelevantstakeholders.

(10)Inordertobuilduponthecommitmentofmeetingworkforceneedsacrossthe

semiconductorsupplychain,theCommissionshouldensuresynergieswith

existingUnionprogrammesanditshouldsupportandencourageMemberStatesinsettingupinitiativeswhichcontributetotheexchangeofacademicknowledge,

withinternationalstrategicpartners.

(11)ItisaclearobjectiveoftheUniontopromoteinternationalcooperationand

knowledgeexchangeonthebasisoftheUnion'sinterests,mutualbenefits,

internationalcommitments,and,totheextentpossible,reciprocity.Nevertheless,

theinfringementofintellectualproperty(IP)rights,theunauthoriseddisclosureof

tradesecrets,ortheleakageofsensitiveemergingtechnologiesinthe

semiconductorsectorcouldcompromisetheinterestsofthesecurityoftheUnion.

Againstthisbackground,theCommissionisexploringconcreteproposalsto

strengthentheUnion’sinvestmentandexportcontrolframeworks.Inaddition,the

UnionandtheMemberStatesshouldcooperatewithstrategicpartnersto

strengthenthejointtechnologicalandindustrialleadershipinaccordancewith

applicableproceduralrequirements.

(12)Thesemiconductorsectorischaracterisedbyveryhighdevelopmentandinnovationcostsandveryhighcostsforbuildingstate-of-the-artfacilitiesfortestingand

validatingtosupporttheindustrialproduction.Thishasdirectimpactonthe

competitivenessandinnovationcapacityoftheUnionindustry,aswellasonthe

securityofthesupplyandtheresilienceoftheUnion’ssemiconductorecosystem.InlightofthelessonslearntfromrecentshortagesintheUnionandworldwideandtherapidevolutionoftechnologychallengesandinnovationcyclesaffectingthe

semiconductorvaluechain,itisnecessarytoreinforcetheUnion’sexisting

strengths,thusincreasingitscompetitiveness,resilience,researchandinnovationcapacitybysettinguptheInitiative.

(13)MemberStatesareprimarilyresponsibleforsustainingastrongUnionindustrial,competitive,sustainableandinnovativebase.However,thenatureandscaleoftheresearchandinnovationchallengesinsemiconductorsrequiresactiontobetakencollaborativelyatUnionlevel.

(14)InordertoequiptheUnionwiththesemiconductortechnologyresearchand

innovationcapacitiesneededtomaintaintheleadingroleofitsresearchand

industrialinvestmentsataleadingedge,andbridgethecurrentgapbetweenresearchanddevelopment(R&D)andmanufacturing,theUnionandMemberStatesshouldcoordinatetheireffortsbetterandco-invest.ThecurrentchallengesoftheUnion’s

semiconductorecosystemcallfortheachievementoflarge-scalecapacityand

requireacollectiveeffortbyMemberStates,withtheUnionsupportingthe

developmentanddeploymentoflarge-scalecapacity.ThatcollectiveeffortincludesprovidingfinancialresourcesinlinewiththeambitionoftheInitiativetosupportthedevelopmentandwidespreadavailabilityofinnovativecapacitiesandextensivedigitalinfrastructures,comprisingavirtualdesignplatform,pilotlines,includingforquantumchips,andthediffusionofknowledge,skillsandcompetencesforthebenefitoftheentiresemiconductorecosystem.Toachievethis,theUnionand

MemberStatesshouldtakeintoconsiderationthetwingreenanddigitaltransitiongoals.Inthisregard,semiconductordevicesandmanufacturingprocessesoffersignificantopportunitiesfordecreasingtheenvironmental,and,inparticular,thecarbonimpactofindustries,therebycontributingtotheambitionsof,forinstance,theCommissioncommunicationof14July2021entitled‘‘Fitfor55’:deliveringtheEU's2030ClimateTargetonthewaytoclimateneutrality’,theRecoveryand

ResilienceFacilityestablishedbyRegulation(EU)2021/241oftheEuropean

ParliamentandoftheCouncil1andthecommunicationoftheCommissionof18May2022entitled‘REPowerEUplan’.TheInitiativeshouldthroughoutall

componentsandactions,totheextentpossible,mainstreamandmaximisethe

benefitsofapplicationofsemiconductortechnologiesaspowerfulenablersforthesustainabilitytransitionthatcanleadtonewproductsandmoreefficient,effective,cleananddurableuseofresources,includingenergyandmaterialsnecessaryforproductionandthewholelifecycleuseofsemiconductors.

1Regulation(EU)2021/241oftheEuropeanParliamentandoftheCouncilof12

February2021establishingtheRecoveryandResilienceFacility(OJL57,18.2.2021,p.17).

(15)Inordertoachieveitsgeneralobjective,andaddressboththesupplyanddemand

sidechallengesofthecurrentsemiconductorecosystem,theInitiativeshouldincludefiveoperationalobjectives.First,toreinforcetheUnion’sdesigncapacity,the

InitiativeshouldsupportactionstobuildavirtualdesignplatformthatisavailableacrosstheUnion.Thevirtualdesignplatformshouldconnectthecommunitiesofdesignhouses,start-ups,SMEsand▌IPandtoolsuppliersandresearchand

technologyorganisationstoprovidevirtualprototypesolutionsbasedonco-developmentoftechnology.

(16)Second,toprovidethebasisforstrengtheningthesecurityofsupplyandthe

Union’ssemiconductorecosystem,theInitiativeshouldsupportenhancementofexistinganddevelopmentofnewadvancedpilotlinestoenabledevelopmentand

deploymentofcutting-edgesemiconductortechnologiesandnext-generation

semiconductortechnologies.Thepilotlinesshouldprovidefortheindustryafacilitytotest,experimentandvalidatesemiconductortechnologiesandsystemdesign

conceptsatthehighertechnologyreadinesslevelsbeyondlevel3butunderlevel8,whilereducingenvironmentalimpactsasmuchaspossible.InvestmentsfromtheUnion,alongsidewithMemberStatesandtheprivatesector,inpilotlinesis

necessarytoaddresstheexistingstructuralchallengeandmarketfailurewheresuchfacilitiesarenotavailableintheUnionhinderinginnovationpotentialandglobalcompetitivenessoftheUnion.

(17)Third,inordertoacceleratetheinnovativedevelopmentofquantumchipsand

associatedsemiconductortechnologies,includingthosebasedonsemiconductormaterialorintegratedwithphotonics,conducivetothedevelopmentofthe

semiconductorsector,theInitiativeshouldsupportactions,includingondesign

librariesforquantumchips,pilotlinesforbuildingquantumchipsandfacilitiesfortestingandvalidatingquantumchipsproducedbythepilotlines.

(18)Fourth,inordertopromotetheuseof▌semiconductortechnologies,toprovide

accesstodesignandpilotlinefacilities,andtoaddressskillsgapsacrosstheUnion,theInitiativeshouldprovideMemberStateswiththepossibilitytoestablishatleastonecompetencecentreonsemiconductorsineachMemberState,byenhancing

existingcentresorcreatingnewfacilities.Accesstopubliclyfundedinfrastructure,suchaspilotandtestingfacilities,andtothecompetencecentres,shouldbeopentoawiderangeofusersandshouldbegrantedonatransparentandnon-discriminatorybasisandonmarketterms(orcostplusreasonablemarginbasis)forlarge

undertakings,whileSMEsandacademicinstitutescanbenefitfrompreferentialaccessorreducedprices.Suchaccess,includingforinternationalresearchand

commercialpartners,canleadtobroadercross-fertilisationandgainsinknow-howandexcellence,whilecontributingtocostrecovery.

(19)Fifth,theCommissionshouldestablishadedicatedsemiconductorinvestment

facilitysupport,aspartoftheinvestmentfacilitationactivitiesdescribedcollectivelyasthe‘ChipsFund’,proposingbothequityanddebtsolutions,includingablendingfacilityundertheInvestEUFundestablishedbyRegulation(EU)2021/523ofthe

EuropeanParliamentandoftheCouncil1,inclosecooperationwiththeEuropean

InvestmentBankGroupandtogetherwithotherimplementingpartnerssuchas

nationalpromotionalbanksandinstitutions.TheChipsFundactivitiesshould

supportthedevelopmentofadynamicandresilientsemiconductorecosystemby

providingopportunitiesforincreasedavailabilityoffundstosupportthegrowthofstart-upsandSMEsaswellasinvestmentsacrossthevaluechain,includingforothercompaniesinthesemiconductorvaluechain.Inthisregard,supportandclear

guidanceshouldbeprovided,inparticulartoSMEs,withtheaimofassistingthemintheapplicationprocess.Inthiscontext,theEuropeanInnovationCouncilis

expectedtoprovidefurtherdedicatedsupportthroughgrantsandequityinvestmentstohighrisk,marketcreatinginnovators.

1Regulation(EU)2021/523oftheEuropeanParliamentandoftheCouncilof24

March2021establishingtheInvestEUProgrammeandamendingRegulation(EU)2015/1017(OJL107,26.3.2021,p.30).

(20)Inordertoovercomethelimitationsofthecurrentfragmentedpublicandprivate

investmentefforts,tofacilitateintegration,cross-fertilisation,andreturnon

investmentontheongoingprogrammesandtopursueacommonstrategicUnion

visiononsemiconductorsasameanstorealisingtheambitionoftheUnionandofMemberStatestoensurealeadingroleinthedigitaleconomy,theInitiativeshouldfacilitatebettercoordinationandclosersynergiesbetweentheexistingfunding

programmesatUnionandnationallevels,bettercoordinationandcollaborationwithindustryandkeyprivatesectorstakeholdersandadditionaljointinvestmentswithMemberStates.Theimplementation▌oftheInitiativeisdesignedtopoolresourcesfromtheUnion,MemberStatesandthirdcountriesassociatedwiththeexisting

UnionProgrammes,aswellastheprivatesector.ThesuccessoftheInitiativecanthereforeonlybebuiltonacollectiveeffortofMemberStatesandtheUnion▌tosupportboththesignificantcapitalcostsandthewideavailabilityofvirtualdesign,testingandpilotingresourcesanddiffusionofknowledge,skillsandcompetences.Whereappropriate,inviewofthespecificitiesoftheactionsconcerned,the

objectivesoftheInitiative,inparticulartheChipsFundactivities,shouldalsobesupportedthroughablendingfacilityundertheInvestEUFund.

(21)SupportfromtheInitiativeshouldbeusedtoaddressmarketfailuresorsub-optimalinvestmentsituationsasaconsequenceofhighcapitalintensity,highrisk,and

complexlandscapeofthesemiconductorecosysteminaproportionatecost-effectivemanner,andactionsshouldnotduplicateorcrowdoutprivatefinancingordistort

competitionintheinternalmarket.ActionsshouldhaveaclearaddedvaluethroughouttheUnion.

(22)TheprimaryimplementationoftheInitiativeshouldbeentrustedtotheChips

JointUndertakingestablishedbyCouncilRegulation(EU)2021/20851(the‘Chips

JointUndertaking’).

1CouncilRegulation(EU)2021/2085of19November2021establishingtheJointUndertakingsunderHorizonEuropeandrepealingRegulations(EC)No

219/2007,(EU)No557/2014,(EU)No558/2014,(EU)No559/2014,(EU)No

560/2014,(EU)No561/2014and(EU)No642/2014(OJL427,30.11.2021,p.17).

(23)TheInitiativeshouldbuilduponthestrongknowledgebaseandenhancesynergieswithactionscurrentlysupportedbytheUnionandMemberStatesthrough

programmesandactionsinresearchandinnovationinsemiconductorsandindevelopmentsofpartofthesupplychain,inparticularHorizonEurope–the

FrameworkProgrammeforResearchandInnovationestablishedbyRegulation

(EU)2021/695oftheEuropeanParliamentandoftheCouncil1(HorizonEurope)

andtheDigitalEuropeProgrammeestablishedbyRegulation(EU)2021/694oftheEuropeanParliamentandoftheCouncil2withtheaimby2030,toreinforcethe

Unionasglobalplayerinsemiconductortechnologyanditsapplications,witha

growingglobalshareinmanufacturing,inlinewiththeCommission

communicationof9March2021entitled‘2030DigitalCompass:theEuropean

wayfortheDigitalDecade’.Furthermore,privateinvestmentsareexpectedtobe

mobilisedtocomplementthefundingoftheInitiativecontributingtoachievingitsobjectives.Complementingthoseactivities,theInitiativewouldcloselycollaboratewithotherrelevantstakeholders,includingwiththeIndustrialAllianceonProcessorsandSemiconductorTechnologies.

1Regulation(EU)2021/695oftheEuropeanParliamentandoftheCouncilof28April

2021establishingHorizonEurope–theFrameworkProgrammeforResearchandInnovation,layingdownitsrulesforparticipationanddissemination,and

repealingRegulations(EU)No1290/2013and(EU)No1291/2013.(OJL170,12.5.2021,p.1).

2Regulation(EU)2021/694oftheEuropeanParliamentandoftheCouncilof29

April2021establishingtheDigitalEuropeProgrammeandrepealingDecision(EU)2015/2240.(OJL166,11.5.2021,p.1).

(24)InordertoallowsynergiesbetweentheUnionandMemberStates'programmes,theworkprogrammesoftheChipsJointUndertakingundertheInitiativeshould

inaccordancewithArticle17(2),point(k),andArticle137,point(aa),of

Regulation(EU)2021/2085clearlydifferentiateactionstosupportresearchand

innovationinsemiconductorsfromthoseaimingtodeveloppartsofthesupply

chain,soastoensuretheappropriateparticipationofpublicandprivateentities.

(25)Withaviewtofacilitatingtheimplementationofspecificactionssupportedbythe

Initiative,suchasthevirtualdesignplatformorpilotlines,itisnecessaryto

provideasanoptionanewlegalinstrument,theEuropeanchipsinfrastructure

consortium(ECIC).TheECICshouldhavelegalpersonality.ThismeansthatwhenapplyingforspecificactionstobefundedbytheInitiative,theECICitself,andnotindividualentitiesformingtheECIC,canbetheapplicant.Nevertheless,pursuantto

Article134(3)ofRegulation(EU)2021/2085,theWorkProgrammecallsfor

proposalsundertheInitiativeareopentodifferentlegalformsofcooperationand

otherparticipants,andtheselectionofproposalsforfundingisnotbasedona

specificlegalformofcooperation.ThemainaimoftheECICshouldbeto

encourageeffectiveandstructuralcollaborationbetweenlegalentities,includingresearchandtechnologyorganisations,industryandMemberStates.TheECICshouldinvolvetheparticipationofatleastthreemembers,namelyMemberStates,orpublicorprivatelegalentitiesfromatleastthreeMemberStates,ora

combinationthereof,withaviewtoachievingbroadrepresentationacrossthe

Union.Byhavinglegalpersonality,anEC

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