The European Chips Act

The European Chips Act, Article 2: Definitions

Article 2: Definitions

1. For the purposes of this Regulation, the following definitions shall apply:

(1) 'semiconductor' means one of the following:

(a) a material, either elemental, such as Silicon, or compound, such as Silicon Carbide, whose electrical conductivity can be modified, or

(b) a component consisting of a series of layers of semiconducting, insulating and conducting materials defined according to a predetermined pattern, and intended to perform well-defined electronic or photonic functions or both;

(2) 'chip' means an electronic device comprising various functional elements on a single piece of semiconductor material, typically taking the form of memory, logic, processor and analogue devices, also referred to as 'integrated circuit';

(3) 'technology node' means the structure on a semiconductor serving as transiting element and providing a measure for manufacturing method in nanometres;

(4) 'semiconductor supply chain' means the system of activities, organisations, actors, technology, information, resources and services involved in the production of semiconductors, including raw materials, manufacturing equipment, design, fabrication, assembly, testing and packaging;

(5) 'semiconductor value chain' means the set of activities in relation to a semiconductor product from its conception to its end use, including raw materials, manufacturing equipment, research, design, fabrication, testing, assembly and packaging to embedding and validation in end products;

(6) 'pilot line' means an experimental project or action addressing higher technology readiness levels from levels 3 to 8 to further develop an enabling infrastructure necessary to test, demonstrate and calibrate a product or system with the model assumptions;

(7) 'coordinator' means a legal entity which is a member of a European Chips Infrastructure Consortium created in accordance with Article 7 and has been appointed by all the members of that consortium to be the principal point of contact for the purpose of the consortium's relations with the Commission;

(8) 'small and medium-sized enterprises' or 'SMEs' means small and medium­ sized enterprises as defined in Article 2 of the Annex to Commission Recommendation 2003/361/EC65;

(9) 'middle capitalisation company' or 'mid-cap' means an enterprise that is not a SME and that employs a maximum of 1 500 persons, where the headcount of staff is calculated in accordance with Articles 3 to 6 of the Annex to Recommendation 2003/361/EC;

(10) 'first-of-a-kind facility' means an industrial facility capable of semiconductor manufacturing, including front-end or back-end, or both, that is not substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance;

(11) 'next generation chips' and 'next generation semiconductor technologies' means chips and semiconductor technologies that go beyond the state of the art in offering significant improvements in computing power or energy efficiency as well as other significant energy and environmental gains;

(12) 'front-end' means the entire processing of a semiconductor wafer;

(13) 'back-end' means the packaging, assembly and test of each individual integrated circuit;

(14) 'user of semiconductors' means an undertaking that produces products in which semiconductors are incorporated;

(15) 'key market actors' means undertakings in the Union semiconductor sector, the reliable functioning of which is essential for the semiconductor supply chain;

(16) 'critical sector' means any sector referred to in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities, the defence sector and other activities that are relevant for public safety and security;

(17) 'crisis-relevant product' means semiconductors, intermediate products and raw materials required to produce semiconductors or intermediate products, that are affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereof;

(18) 'production capability' means the potential output of a semiconductor manufacturing facility under optimal resources, typically the amount of wafers of a certain size that can be processed in a given time;

(19) 'production capacity' means the output of a semiconductor manufacturing facility, typically the amount of wafers of a certain size that is usually processed in a given time.

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.