Parliament discusses Chips Act proposal; industry signals potential disruption

The legislative proposal for a Chips Act, which intends to boost the EU production of semiconductors as well as address future supply chain crises, continues to be discussed in the European Parliament and the Council of the EU.

MEP Dan Nica, the ITRE Committee rapporteur leading the file presented his draft report this week, which will form the basis for the Parliament’s position in the negotiations with Council and Commission., The report will still be amended and Parliament is aiming to finalise its negotiation position in early 2023, paving the way for adoption of the EU chips act in the first half of 2023. 

The automotive sector is responsible for 37% of the European semiconductor demand and CLEPA fulfils a key role in the discussion, representing both chip users, designers and producers. CLEPA is engaging  with policymakers to stress the need for a resilient framework that protects the innovation capacity of the sector but warns against some of the far-reaching supply chain intervention tools proposed by the EU Chips Act.  

With the aim of facilitating these exchanges, the European Forum for Manufacturing organised a special session on 6 September, where CLEPA’s Senior Manager for Governmental Affairs, William Moreau, shared the industry view on the current Commission’s proposal in a discussion with MEPs and Commission representatives. CLEPA welcomes the Commission’s proposal, which has the potential to foster public and private investments in R&D, chips design and chips manufacturing capabilities in Europe. Nevertheless, CLEPA sees the urgent need for Member States to confirm appropriate resources to reach the ambitious objectives of the Chips Act. Automotive suppliers are also concerned that the proposed supply chain interventions, such as  joint purchasing and distribution of chips, could lead to further disruption in supply chains and undermine private investment.  

CLEPA looks forward to working with the Parliament and the Council to upgrade this proposal and ensure that the final result matches the Commission’s high ambitions. 


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