What EU Chips Act (EU) 2023/1781 - Article 20: Monitoring the Semiconductor Supply Chain and Crisis Stage Response Measures requires
Article 20 of the EU Chips Act (Regulation 2023/1781) establishes the semiconductor supply chain monitoring and crisis response mechanism. The Commission, assisted by the European Semiconductor Board, continuously monitors indicators of supply chain disruption including: production capacity utilisation, inventory levels, delivery lead times, and demand trends. When a significant disruption risk is identified, the Commission may activate a 'crisis stage' by implementing act. In a crisis stage, the Commission may: (a) require IPFs and OEFs to report production and inventory data within 2 weeks; (b) issue 'priority rated orders' requiring IPFs and OEFs to accept specific customer orders at the expense of commercial queue position; (c) coordinate demand aggregation among member states; (d) activate strategic reserves. Priority rated orders are legally binding on IPFs and OEFs and override normal commercial queuing. The crisis stage mechanism reflects lessons from the 2020-2023 semiconductor shortage that disrupted automotive, electronics, and defence supply chains across Europe.
Pillar: AI Governance & Law · Authority: European Parliament and the Council of the European Union · Version: 2.0.0 · Last updated:
Primary source: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32023R1781
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- Article 20 — EU Chips Act (EU) 2023/1781 - Article 20: Monitoring and Crisis Stage
- Article 21 — EU Chips Act (EU) 2023/1781 - Article 21: Crisis Stage Response Measures
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