The European Chips Act

The European Chips Act, Article 10: Integrated Production Facilities


CHAPTER III, SECURITY OF SUPPLY


Article 10: Integrated Production Facilities


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.


2. An Integrated Production Facility shall meet the following criteria:

(a) it qualifies as a first-of-a-kind facility;

(b) 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;

(c) it guarantees not to be subject to the extraterritorial application of public service obligations of third countries in a way that may undermine the undertaking's ability to comply with the obligations set out in Article 21(1) and commits to inform the Commission when such obligation arises;

(d) it commits to invest in the next generation of chips.


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.


Note: This is not the final text of the European Chips Act. This is the text of the European Chips Act Proposal of February 2022.