The Franco-German industry (Bundesverband Deutschland, France Industrie and MEDEF), while welcoming the European Commission’s proposals to strengthen European autonomy in the semiconductor field, expresses concerns about some of the provisions foreseen under the crisis monitoring mechanism, in a position paper seen by EUROPE on Tuesday 24 May.
The European Commission, in its proposal of early February, put forward a series of crisis provisions to monitor disruptions in supply and production along the value chain. It proposes, among other things, the collection of compulsory information in the event of crises and shortages, the prioritisation of orders for critical sectors, joint purchasing mechanisms and export controls (see EUROPE 12886/1).
Instead of this proposal, which the industry considers “very directive” in that it “implies far-reaching interventions in the market”, the authors of the paper propose to agree on a “proportionate, effective” forecasting mechanism, consistent with respect for competition rules, trade secrets and industrial property rights, “which is not too intrusive”.
For example, they object to Article 20 on the collection of information, fearing potential risks and repercussions if a third party were to have access to the information collected by the European Commission. They also reject the possibility for the European Commission to impose fines on companies that provide incomplete or non-existent answers to the Commission’s requests for information.
Furthermore, they are concerned about the European Commission’s focus on nano semiconductors and advanced technologies when the whole industrial ecosystem has a huge need for mainstream semiconductors in all sectors, not just the automotive sector.
In general, the industry warns of the risk of “a subsidy race” in the face of any attempt to create a “closed” value chain in Europe. On the contrary, it encourages international cooperation, especially with the US administration.
Many of these demands and concerns were also expressed in the EU Council by national delegations (see EUROPE 12959/20).
To read the position paper: https://aeur.eu/f/1ta (Original version in French by Pascal Hansens)