The European Chips Act

The European Chips Act, Article 15 Monitoring and alerting



CHAPTER IV, MONITORING AND CRISIS RESPONSE

SECTION 1, MONITORING


Article 15 Monitoring and alerting


1. Member States shall carry out regular monitoring of the semiconductor value chain. In particular, they shall:

(a) monitor early warning indicators identified pursuant to Article 16;

(b) monitor the availability and integrity of the services and goods provided by the key market actors identified pursuant to Article 17.

Member States shall provide relevant findings to the European Semiconductor Board in the form of regular updates.


2. Member States shall invite the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set-up for these updates.


3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. National competent authorities in such case will pay particular attention to SMEs to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.


4. Where a Member State becomes aware of a potential semiconductor cns1s, a significant fluctuation in demand or has concrete and reliable information of any other risk factor or event materialising, it shall immediately alert the Commission ('early warning').


5. Where the Commission becomes aware of a potential semiconductor crisis, a significant fluctuation in demand or has concrete and reliable information of any other risk factor or event materialising, based on an alert by a Member State provided in accordance with paragraph 4, or through other sources, including information from international partners, it shall without undue delay:

(a) convene an extraordinary meeting of the European Semiconductor Board to coordinate the following actions:

(1) assessing whether the activation of the crisis stage referred to in Article 18 is warranted;

(2) discussing whether it may be appropriate, necessary and proportionate for Member States to jointly purchase semiconductors, intermediate products or raw materials affected or at threat of being affected by a potential semiconductor crisis ('coordinated procurement');

(b) enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora.


6. The coordinated procurement referred to in paragraph 5, point (a)(ii), shall be carried out by Member States in accordance with the rules set out in Article 38 of Directive 2014/24/EU of the European Parliament and of the Council.


7. National competent authorities designated pursuant to Article 26(1) shall map undertakings operating along the semiconductor supply chain in their national territory, including non-confidential information on the services or goods, and contact information. They shall notify this list and any subsequent update to the Commission. The Commission may issue guidance, after consulting the European Semiconductor Board, to further specify the information to be gathered and define the technical specifications and formats.


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.