Annexes to COM(2022)46 - Framework of measures for strengthening Europe's semiconductor ecosystem (Chips Act) - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2022)46 - Framework of measures for strengthening Europe's semiconductor ecosystem (Chips Act). |
|---|---|
| document | COM(2022)46  |
| date | September 13, 2023 |
1. The number of legal entities involved (subdivided by size, type and country of establishment) in the actions supported by the Initiative.
2. The number of design tools developed or integrated under the Initiative.
3. The total amount co-invested in design capacities and pilot lines under the Initiative.
4. The number of users or user communities getting access to design capacities and pilot lines under the Initiative.
5. The number of businesses, which have used the services of national competence centres supported by the Initiative.
6. The number of persons who have received training to acquire advanced skills and training on semiconductor and quantum technologies supported by the Initiative.
7. The number of start-ups, scale-ups and SMEs who have received venture capital from the Chips Fund and the total amount of capital investments made.
8. The amount of investment by companies operating in the EU, taking into consideration the segment of the value chain in which they operate
1.3.Grounds for the proposal/initiative
1.3.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative
The Regulation should be fully applicable shortly after its adoption, i.e. the day following that of its publication in the Official Journal of the European Union. However, initial elements should be in place before, supported by the Recommendation by the Commission, adopted at the same time as the proposed Regulation.
The European Semiconductor Board should be set up and Member States should have appointed a point of contact to its meeting. By the time of applicability the European Semiconductor Board should be fully operative.
Information gathering from representative organistions of semiconductor undertakings should alreay be on-going and Member States should have already discussed a number of possible measures in the crisis toolbox and carried out monitoring of the semiconductor value chain.
1.3.2.Added value of Union involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this point 'added value of Union involvement' is the value resulting from Union intervention which is additional to the value that would have been otherwise created by Member States alone.
Semiconductor chips are central to the digital economy. The global semiconductor shortage has exposed Europe’s dependency on supply from a limited number of companies and geographies, and its vulnerability to third country export restrictions and other disruptions in the present geopolitical context. Furthermore, this dependency is exacerbated by the extremely high barriers to entry and capital intensity of the sector. For example, the most computationally powerful chips require manufacturing to a precision of a few nanometers (nm). Building such facilities entails an upfront investment of at least EUR 15 billion and requires three years to achieve production-readiness with adequate yields. The expenditures to design such chips can range from EUR 0.5 billion to well over EUR 1.0 billion. R&D intensity in the sector is high and more than 15%. No single Member State is capable of achieving this alone.
Intervention at the level of the Union is best placed to address the challenges deriving from the complexity of the semiconductor ecosystem, from the Union’s structural dependencies and from far-reaching supply chain disruptions.
The Chips for Europe Initiative, should be set as a Union-wide initiative for supporting an industrial sector across Europe. A Union level initiative can provide the necessary degree of uniformity needed for the effective operation of funding programmes aimed at strengthening the Europen semiconductor ecosystem.
For the security of supply, Union level action is justified by the need for a uniform application of the new rules, in particular the definition of Integrated Production Facilities and Open EU Foundries, as well as a uniform procedure for their recognition and support.
Furthermore, a key element of this proposal is to provide for measures to address serious disruptions to vital societal functions or economic activities at Union level. Important coordination gains should arise from setting up a mechanism for coordination between Member States and the Commission for monitoring and crisis response to semiconductor shortages.
1.3.3.Lessons learned from similar experiences in the past
The Commission published a Communication in 2013 on “A European Strategy for Micro- and Nanoelectronic Components and Systems” 68 . It proposed an industrial strategy to ensure return to growth and reach, in a decade, a level of production in the EU that is closer to its share of world GDP. In more detail, it aimed to:
- Ensure the availability of micro- and nanoelectronics that are needed for the competitiveness of key industries in Europe.
- Attract higher investment in advanced manufacturing in Europe and reinforce industrial competitiveness across the value chain from design to manufacturing.
- Maintain leadership in equipment and material supply and in areas such as “more than Moore” and energy-efficient components.
- Build leadership in the design of chips in high growth markets, notably in the design of complex components.
Clearly, the Union was not entirely successful in reaching the objectives of this industrial strategy.
One reason is that EU actions following the Communication largely focused on supporting R&D, for example via the ECSEL Joint Undertaking. However, capacity building in the microelectronics sector was not well addressed.
Furthermore, the Communication mentioned demand-side actions to be addressed. However, the actions undertaken did not adequately address such demand-side actions. More emphasis on demand-side actions, e.g. actions addressing design activities, is needed.
Finally, related to the first point, the 2013 Communication had few instruments at its disposal. Currently, more instruments are available, an opening in the competition policy has been provided, and the political momentum is now clearer.
1.3.4.Compatibility with the Multiannual Financial Framework and possible synergies with other appropriate instruments
In order to maximise its positive impacts, the Chips for Europe Initiative (pillar 1) will build upon the strong knowledge base and enhance synergies with actions currently supported by the Union and Member States through programmes and actions in research and innovation in semiconductors and in developments of part of the supply chain. These include, in particular, the Horizon Europe Framework Programme and the Digital Europe Programme, with the aim to reinforce Europe as global player in semiconductor technology and its applications, with a growing global share in manufacturing by 2030. Complementing those activities, the Chips for Europe Initiative would closely collaborate with the Industrial Alliance on Processors and Semiconductor Technologies.
Furthermore, the Regulation provides for a procedural framework to facilitate combined funding from Member States, the EU budget and private investment.
The proposed initiative can be set in the context of a number of recently announced European policies and priorities:
- Industrial Strategy;
- Recovery Plan for Europe;
- Green Deal;
- Artificial Intelligence;
- Research and Innovation under the proposed Horizon Europe programme, Pillar II Cluster “Digital, Industry and Space” aims to make concrete contributions to three overarching EU policies: ‘A Europe fit for the Digital Age’, ‘An economy that works for people’, and ‘A European Green Deal’.
- Recovery and Resilience Facility
As regards possible synergies with other appropriate instruments, the role of competent authorities at national level can be performed by national authorities fulfilling similar functions under other Union law. See also Chapter 1 of the Explanatory Memorandum.
1.3.5.Assessment of the different available financing options, including scope for redeployment
1.4.Duration and financial impact of the proposal/initiative
limited duration
in effect from date of adoption of the proposal for a Regulation of the European Parliament and of the Council establishing a framework of measures for strengthening Europe’s semiconductor ecosystem (Chips Act)
Financial impact from 2023 to 2027 for commitment appropriations and from 2023 to 2031 for payment appropriations.
unlimited duration
1 Implementation with a start-up period from YYYY to YYYY,
2 followed by full-scale operation.
1.5.Management mode(s) planned
Direct management by the Commission
by its departments, including by its staff in the Union delegations;
by the executive agencies
Shared management with the Member States
Indirect management by entrusting budget implementation tasks to:
third countries or the bodies they have designated;
international organisations and their agencies (to be specified);
the EIB and the European Investment Fund;
bodies referred to in Articles 70 and 71 of the Financial Regulation;
public law bodies;
bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;
bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees;
persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.
If more than one management mode is indicated, please provide details in the ‘Comments’ section.
Comments
With the exception of a) activities and budgets related to the Chips Fund and b) activities and budgets earmarked under the European Innovation Council, the Chips for Europe Initiative will be implemented under indirect management by entrusting the implementation of tasks to the Key Digital Technologies Joint Undertaking, to be renamed to ‘Chips Joint Undertaking’. Member States and other Participating States are co-funding indirect actions.
Other parts, such as the activities under pillar 2 and 3, are under direct management. These concern tasks entrusted to the Commission to supervise the Chips JU, to review and decide on European Chips Infrastructure Consortium applications, to review and decide on applications for an Integrated Production Facility or Open EU Foundry, to support the European Semiconductor Board, and – together with Member States – to monitor semiconductor supply chains and decide on actions, where appropriate.
2. MANAGEMENT MEASURES
2.1.Monitoring and reporting rules
Specify frequency and conditions.
As a Union body, the Chips Joint Undertaking functions under strict monitoring rules. Monitoring is performed through:
- its own internal audit capacity and the audit service of the Commission;
- the supervision of the Governing Board. The Executive Director will supervise the Joint Undertaking’s operations internally;
- a set of quantitative and qualitative performance indicators which will be established to monitor the implementation of the programme and to measure its impact;
- mid-term and final evaluations of the programme by external experts, under the supervision of the Commission;
- the Joint Undertaking’s Work Programme and its Annual Activity Report.
2.2.Management and control system(s)
2.2.1Justification of the management mode(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed
The Regulation introduces a new policy framework with regard to attracting investment in and enhancing advanced semiconductor manufacturing in the Union and introduces harmonised rules for a coordinated approach to monitoring and preparedness for semiconductor shortages.
These new rules require a consistency mechanism for the cross-border application of the obligations under this Regulation and coordination of the activities of national authorities and of the Commission through a new advisory group, the European Semiconductor Board.
These tasks under direct management. In order to face these new tasks under pillar 2 and 3 and related to the Chips Fund, it is necessary to appropriately resource the Commission’s services.
For other parts, indirect management is justified because the Chips Joint Undertaking is a public private partnership with part of the co-financing brought in via contributions from Participating States and via in-kind contributions by private members.
Each year, the decision on the EU contribution to the Chips Joint Undertaking will be taken by virtue of the EU Budget adopted for that year.
A Framework Financial Partnership Agreement signed between the European Commission and the Chips Joint Undertaking will indicate that for the tasks to be carried out each year the Commission will pay a contribution upon conclusion of a Contribution agreement with the Chips Joint Undertaking, and the issuing, by the Joint Undertaking, of corresponding payment requests to the members other than the Union.
The Commission will ensure that the rules applicable to the Chips Joint Undertaking fully comply with the requirements of the Financial Regulation. In compliance with Article 71 of Regulation (EU, Euratom) 2018/1046 the Joint Undertaking will respect the principle of sound financial management. The Chips Joint Undertaking shall also comply with the provisions of the Model Financial Regulation applicable to the Joint Undertaking. Any departure from this Model Financial Regulation, required for the purpose of the Joint Undertaking’s specific needs, shall be subject to the Commission’s prior consent.
Monitoring arrangements, including through the Union representation in the Governing Board and Public Authorities Board of the Chips Joint Undertaking, as well as reporting arrangements will ensure that the Commission services can meet the accountability requirements both to the College and to the Budgetary Authority.
The internal control framework for the Chips Joint Undertaking is built on:
-the implementation of the Internal Control Standards offering at least equivalent guarantees to those of the Commission;
-procedures for selecting the best projects through independent evaluation, and for translating them into legal instruments;
-project and contract management throughout the lifetime of every project;
-ex-ante checks on 100% of claims, including receipt of audit certificates and ex-ante certification of cost methodologies;
-ex-post audits on a sample of claims as part of the Horizon Europe ex-post audits;
-scientific evaluation of project results.
2.2.1.Information concerning the risks identified and the internal control system(s) set up to mitigate them
Various measures have been established to mitigate the inherent risk of conflict of interest within the Chips Joint Undertaking, especially:
-equal votes (one third) for the Commission, Participating States (collectively) and for private members (collectively) in the Governing Board; equal votes (one half) for the Commission and Participating States (collectively) in the Public Authorities Board;
-high-level decisions on the activities/budgets dedicated to the activities of the chips initiative (capacity building in upcoming work programmes) are taken by the Public Authorities Board with Member States only,
-the part of the work programme dealing with capacity building activities is adopted by the Public Authorities Board with Member States only,
-selection of the Executive Director by the Governing Board based on a proposal by the Commission,
-independence of staff,
-evaluations by independent experts based on published evaluation criteria together with appeal mechanisms and full declarations of any interests,
-a requirement for the Governing Board to adopt rules for the prevention, avoidance and management of conflicts of interest in the Joint Undertaking in accordance with the financial rules of the Joint Undertaking and with the Staff Regulations in respect of staff.
The establishment of ethical and organisational values will be one of the key roles of the Joint Undertaking, and will be monitored by the Commission.
The Executive Director of the Chips Joint Undertaking, as Authorising Officer, will be required to introduce a cost-effective system of internal control and management. They will be required to report to the Commission on the internal control framework adopted.
The Commission will monitor the risk of non-compliance through the reporting system that it will develop, as well as by following the results of ex post audits on the recipients of EU funds from the Chips Joint Undertaking, as part of ex post audits covering the whole of the Horizon Europe.
There is a clear need to manage the budget in an efficient and effective manner, and to prevent fraud and waste. However, the control system needs to strike a fair balance between attaining an acceptable error rate and the control burden required and avoid lowering the attractiveness of the Union's Research programme.
2.2.3Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ value of the related funds managed"), and assessment of the expected levels of risk of error (at payment & at closure)
As the rules for participation of Horizon Europe and the Digital Europe programme applicable to the Chips Joint Undertaking are similar to those that the Commission will use in its work programmes, and with a population of beneficiaries with a similar risk profile to those of programmes under direct management, it can be expected that the error margin will be similar to that foreseen by the Commission for Horizon Europe and the Digital Europe programme, i.e. to give reasonable assurance that the risk of error over the course of the multiannual expenditure period is, on an annual basis, within a range of 2-5 %, with the ultimate aim to achieve a residual error rate as close as possible to 2 % at the closure of the multi-annual programmes, once the financial impact of all audits, correction and recovery measures have been taken into account.
2.3.Measures to prevent fraud and irregularities
Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy.
The Commission will ensure that procedures to fight against fraud at all stages of the management process are applied by the Chips Joint Undertaking.
The Commission will ensure that appropriate measures are in place to ensure that, when actions financed under this Regulation are implemented, the financial interest of the Union is protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective checks and, if irregularities are detected, by the recovery of the amounts wrongly paid and, where appropriate, by effective, proportionate and deterrent penalties.
The Court of Auditors shall have the power of audit, on the basis of documents and on-the-spot checks, over all grant beneficiaries, contractors and subcontractors who have received Union funds under the Programme.
The European Anti-fraud Office (OLAF) may carry out on-the-spot checks and inspections on economic operators concerned directly or indirectly by such funding in accordance with the procedures laid down in Regulation (Euratom, EC) No 2185/96 with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union in connection with a grant agreement or grant decision or a contract concerning Union funding. The Joint Undertakings will also need to accede to the Interinstitutional Agreement of 25 May 1999 between the European Parliament, the Council of the European Union and the Commission of the European Communities concerning internal investigations by the European Anti-fraud Office (OLAF).
The European Public Prosecutor’s Office (EPPO) may carry out investigations in accordance with the provisions and procedures laid down in Council Regulation (EU) 2017/193923, with a view to investigating criminal offences affecting the financial interests of the Union.
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected
Existing budget lines
In order of multiannual financial framework headings and budget lines.
| Heading of multiannual financial framework | Budget line | Type of expenditure | Contribution | |||
| Number | Diff./Non-diff. 69 | from EFTA countries 70 | from candidate countries 71 | from third countries | within the meaning of Article 21(2)(b) of the Financial Regulation | |
| 1 | 01 02 02 30 – Cluster Civil Security for Society | Diff. | YES | YES | YES | NO |
| 1 | 01 02 02 40 - Cluster Digital, Industry and Space | Diff. | YES | YES | YES | NO |
| 1 | 01 02 02 42 Horizon Europe Programme — Key Digital Technologies joint undertaking | Diff | YES | YES | YES | NO |
| 1 | 01 02 02 50 – Cluster Climate, Energy and Mobility | Diff | YES | YES | YES | NO |
| 1 | 01 02 03 01 - European Innovation Council | Diff. | YES | YES | YES | NO |
| 1 | 02 03 01 - Connecting Europe Facility (CEF) — Transport | Diff. | NO | YES | YES | NO |
| 1 | 02 03 03 01 - Connecting Europe Facility (CEF) — Digital | Diff. | NO | YES | YES | NO |
| 1 | 02 04 01 10 - Digital Europe programme - Cybersecurity | Diff. | YES | YES | YES | NO |
| 1 | 02 04 01 11 - Digital Europe programme - European Cybersecurity Industrial, Technology and Research Competence Centre | Diff | YES | YES | YES | NO |
| 1 | 02 04 02 11 - Digital Europe programme - High-Performance Computing joint undertaking (EuroHPC) | Diff | YES | YES | YES | NO |
| 1 | 02 04 03 - Digital Europe programme - Artificial intelligence | Diff. | YES | YES | YES | NO |
| 1 | 02 04 04 - Digital Europe programme – Skills | Diff. | YES | YES | YES | NO |
| 1 | 02 04 05 01 - Digital Europe programme - Deployment | Diff. | YES | YES | YES | NO |
| 1 | 02 04 05 02 - Digital Europe programme - Deployment / Interoperability | Diff. | YES | YES | YES | NO |
| 1 | Unallocated margin – Heading 1 | Diff. | NO | NO | NO | NO |
New budget lines requested
In order of multiannual financial framework headings and budget lines.
| Heading of multiannual financial framework | Budget line | Type of expenditure | Contribution | |||
| Number | Diff./Non-diff. | from EFTA countries | from candidate countries | from third countries | within the meaning of Article 21(2)(b) of the Financial Regulation | |
| 1 | 02 04 06 10 - Digital Europe programme – Chips | Diff. | YES | YES | YES | NO |
| 1 | 02 04 06 11 - Digital Europe Programme — Chips joint undertaking | Diff | YES | YES | YES | NO |
3.2.Estimated financial impact of the proposal on appropriations
3.2.1.Summary of estimated impact on operational appropriations
The proposal/initiative does not require the use of operational appropriations
The proposal/initiative requires the use of operational appropriations, as explained below:
EUR million (to three decimal places)
| Heading of multiannual financial framework | 1 | Single Market, Innovation and Digital |
The proposal will not increase the total level of expenditure programmed under Heading 1 of the Multiannual Financial Framework 2021-2027. Indeed, the contribution from the EU Budget to the Chips for Europe Initiative will be pooled from the Horizon Europe Programme and the Digital Europe Programme and, with the exception of the action under the European Innovation Council, channelled to the Key Digital Technologies (future Chips) Joint Undertaking for implementation. To this end, a sixth specific objective will be created under the Digital Europe Programme.
This sixth specific objective will be financed by
i an internal redeployment of the current envelope of the Digital Europe Programme,
ii a use of unallocated margin of Heading 1, and
iii a reduction from the envelopes of the Connecting Europe Facility – Transport and the Connecting Europe Facility – Digital.
The summary table under section 3.2.4 provides a full overview of all sources of funding.
·Operational appropriations earmarked or reallocated within Horizon Europe for being used for the purpose of the Chips for Europe Initiative
| Operational appropriations under Horizon Europe | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | ||
| Operational appropriations earmarked under Horizon Europe | |||||||||||
| 01 02 02 42- Horizon Europe Programme — Key Digital Technologies joint undertaking | Commitments | (1a) | 108.850 | 112.609 | 97.470 | 91.781 | 89.290 | 500.000 | |||
| 01 02 03 01 - European Innovation Council 72 | Commitments | (1a) | 75.251 | 55.054 | 55.501 | 56.499 | 57.696 | 300.000 | |||
| Operational appropriation reallocated within Horizon Europe | |||||||||||
| 01 02 02 30 – Cluster Civil Security for Society | Commitments | (1a) | 40.800 | 47.400 | 41.400 | 10.200 | 10.200 | 150.000 | |||
| 01 02 02 40 - Cluster Digital, Industry and Space | Commitments | (1a) | 108.800 | 126.400 | 110.400 | 27.200 | 27.200 | 400.000 | |||
| 01 02 02 50 Cluster Climate, Energy and Mobility | Commitments | (1a) | 81.600 | 94.800 | 82.800 | 20.400 | 20.400 | 300.000 | |||
| TOTAL appropriations under Horizon Europe | Commitments | 415.302 | 436.263 | 387.570 | 206.080 | 204.785 | - | 1,650.000 |
·Operational appropriations to be pooled under a sixth specific objective of the Digital Europe Programme for the purpose of the Chips for Europe Initiative to be implemented by the future Chips Joint Undertaking:
| Operational appropriations under Digital Europe – sixth objective | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | ||
| Operational appropriations redeployed from other programmes (Horizon Europe, Connecting Europe Facility) | |||||||||||
| 01 02 02 40 – Horizon Europe - Cluster Digital, Industry and Space | Commitments | (1a) | 80.000 | 80.000 | 80.000 | 80.000 | 80.000 | 400.000 | |||
| 02 03 01 - Connecting Europe Facility (CEF) — Transport | Commitments | (1a) | 96.000 | 86.000 | 34.000 | 34.000 | 250.000 | ||||
| 02 03 03 01 - Connecting Europe Facility (CEF) — Digital | Commitments | (1a) | 57.600 | 51.600 | 20.400 | 20.400 | 150.000 | ||||
| Operational appropriation reallocated within the Digital Europe programme | |||||||||||
| 02 04 01 10 - Digital Europe programme – Cybersecurity | Commitments | (1a) | 16.320 | 18.960 | 16.560 | 4.080 | 4.080 | 60.000 | |||
| 02 04 01 11 - Digital Europe programme - European Cybersecurity Industrial, Technology and Research Competence Centre | Commitments | (1a) | 16.320 | 18.960 | 16.560 | 4.080 | 4.080 | 60.000 | |||
| 02 04 02 11 - Digital Europe programme - High-Performance Computing joint undertaking (EuroHPC) | Commitments | (1a) | 40.800 | 47.400 | 41.400 | 10.200 | 10.200 | 150.000 | |||
| 02 04 03 - Digital Europe programme - Artificial intelligence | Commitments | (1a) | 59.840 | 69.520 | 60.720 | 14.960 | 14.960 | 220.000 | |||
| 02 04 04 - Digital Europe programme - Skills | Commitments | (1a) | 16.320 | 18.960 | 16.560 | 4.080 | 4.080 | 60.000 | |||
| 02 04 05 01 - Digital Europe programme – Deployment | Commitments | (1a) | 10.880 | 12.640 | 11.040 | 2.720 | 2.720 | 40.000 | |||
| 02 04 05 02 - Digital Europe programme - Deployment / Interoperability | Commitments | (1a) | 2.720 | 3.160 | 2.760 | 0.680 | 0.680 | 10.000 | |||
| Contribution from the available margin under Heading 1 of the Multiannual Financial Framework | |||||||||||
| Unallocated margin Heading 1 | Commitments | (1a) | 50.000 | 50.000 | 50.000 | 50.000 | 50.000 | 250.000 | |||
| TOTAL appropriations pooled to Digital Europe | Commitments | =1a | 293.200 | 473.200 | 433.200 | 225.200 | 225.200 | - | 1,650.000 |
For information purposes: overview of the implementation by the European Innovation Council and the Chips Joint Undertaking
AHorizon Europe
Implementation by the European Innovation Council
| Operational appropriations “earmarked” under Horizon Europe - EIC | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | ||
| 01 02 03 01 - European Innovation Council 73 | Commitments | (1a) | 75.251 | 55.054 | 55.501 | 56.499 | 57.696 | 300.000 | |||
| Payments | (2a) | 45.151 | 48.082 | 51.836 | 58.030 | 56.973 | 39.928 | 300.000 |
Implementation by the Chips Joint Undertaking
EUR 500 million earmarked for the purposes of the Chips for Europe Initiative within the pre-existing financial envelope of the Key Digital Technologies Joint Undertaking will be implemented by the Chips joint undertaking:
| Operational appropriations “earmarked” under Horizon Europe - KDT | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | ||
| 01 02 02 42- Horizon Europe Programme — Key Digital Technologies joint undertaking | Commitments | (1a) | 108.850 | 112.609 | 97.470 | 91.781 | 89.290 | 500.000 | |||
| Payments | (2a) | 60.897 | 74.926 | 83.997 | 83.126 | 79.271 | 117.783 | 500.000 |
The EUR 850 million reallocated under Horizon Europe –will be implemented by the Key Digital Technologies (future Chips) joint undertaking and split between operational and support expenditure as follows:
| Appropriations reallocated within Horizon Europe – to the Chips JU | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | ||
| Operational appropriations | |||||||||||
| 01 02 02 42 Horizon Europe Programme — Key Digital Technologies joint undertaking - Operational expenditure | Commitments | (1a) | 230.809 | 267.842 | 233.371 | 56.546 | 52.897 | 841.465 | |||
| Payments | (2a) | 138.329 | 206.642 | 216.371 | 130.326 | 95.281 | 54.516 | 841.465 | |||
| Appropriations of an administrative nature financed from the envelope of specific programmes 74 | |||||||||||
| 01 02 02 42 Horizon Europe Programme — Key Digital Technologies joint undertaking - Support expenditure | Commitments | (1b) | 0.391 | 0.758 | 1.229 | 1.254 | 4.903 | 8.535 | |||
| Payments | (2b) | 0.391 | 0.758 | 1.229 | 1.254 | 1.279 | 3.624 | 8.535 | |||
| TOTAL additional appropriations for the Chips Joint Undertaking under Horizon Europe | Commitments | =1a+1b +3 | 231.200 | 268.600 | 234.600 | 57.800 | 57.800 | - | 850.000 | ||
| Payments | =2a+2b+3 | 138.720 | 207.400 | 217.600 | 131.580 | 96.560 | 58.140 | 850.000 |
The consolidated appropriations of the Key Digital Technologies (future Chips) joint undertaking under the Horizon Europe, including appropriations covering former activities of the KDT Joint Undertaking that are not part of the Chips for Europe Initiative, will be as follows:
| Chips Joint Undertaking | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | ||
| Operational appropriations | |||||||||||
| 01 02 02 42 Horizon Europe Programme — Key Digital Technologies joint undertaking - Operational expenditure | Commitments | (1a) | 207.637 | 247.490 | 518.207 | 565.170 | 490.661 | 298.788 | 287.185 | 2,615.139 | |
| Payments | (2a) | 51.909 | 113.782 | 334.342 | 447.834 | 486.757 | 397.896 | 350.073 | 432.545 | 2,615.139 | |
| Appropriations of an administrative nature financed from the envelope of specific programmes | |||||||||||
| 01 02 02 42 Horizon Europe Programme — Key Digital Technologies joint undertaking - Support expenditure | Commitments | (1b) | 2.363 | 2.510 | 2.993 | 3.430 | 3.939 | 4.012 | 15.615 | 34.861 | |
| Payments | (2b) | 2.363 | 2.510 | 2.993 | 3.430 | 3.939 | 4.012 | 4.076 | 11.539 | 34.861 | |
| TOTAL appropriations for Chips Joint Undertaking under the Horizon Europe programme | Commitments | =1a+1b +3 | 210.000 | 250.000 | 521.200 | 568.600 | 494.600 | 302.800 | 302.800 | 2,650.000 | |
| Payments | =2a+2b+3 | 54.272 | 116.292 | 337.335 | 451.264 | 490.696 | 401.908 | 354.149 | 444.083 | 2,650.000 |
BDigital Europe programme
Under the Digital Europe Programme, except for EUR 125 million to be implemented under InvestEU, EUR 1 525 million will be implemented by the Key Digital Technologies (future Chips) joint undertaking and split between operational and support expenditure as follows:
| Chips Joint Undertaking | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | ||
| Operational appropriations | |||||||||||
| 02 04 06 11 - Digital Europe Programme — Chips joint undertaking - Operational expenditure | Commitments | (1a) | 258.498 | 432.340 | 396.494 | 214.450 | 207.904 | 1,509.687 | |||
| Payments | (2a) | 154.818 | 310.700 | 349.674 | 276.800 | 254.305 | 163.389 | 1,509.687 | |||
| Appropriations of an administrative nature financed from the envelope of specific programmes | |||||||||||
| 02 04 06 11 - Digital Europe Programme — Chips joint undertaking- Support expenditure | Commitments | (1b) | 0.702 | 1.360 | 2.206 | 2.250 | 8.796 | 15.313 | |||
| Payments | (2b) | 0.702 | 1.360 | 2.206 | 2.250 | 2.295 | 6.501 | 15.313 | |||
| TOTAL appropriations for Chips Joint Undertaking | Commitments | =1a+1b +3 | 259.200 | 433.700 | 398.700 | 216.700 | 216.700 | 1,525.000 | |||
| Payments | =2a+2b+3 | 155.520 | 312.060 | 351.880 | 279.050 | 256.600 | 169.890 | 1,525.000 |
The total additional appropriations pooled under Heading 1 to be implemented by the future Chips Joint Undertaking for the purpose of the Chips for Europe Initiative amounts to EUR 2 375 million, of which EUR 850 million under Horizon Europe and EUR 1 525 million under Digital Europe. It will split between operational (Title 3) and support (Title 1 and Title 2) expenditure as follows:
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | |||
| Title 1 | Commitments | (4) | 0.792 | 1.535 | 2.489 | 2.538 | 9.924 | 17.277 | |||
| Payments | (5) | 0.792 | 1.535 | 2.489 | 2.538 | 2.589 | 7.335 | 17.277 | |||
| Title 2 | Commitments | (4) | 0.301 | 0.584 | 0.947 | 0.966 | 3.775 | 6.572 | |||
| Payments | (5) | 0.301 | 0.584 | 0.947 | 0.966 | 0.985 | 2.790 | 6.572 | |||
| Title 3 | Commitments | (4) | 489.307 | 700.182 | 629.865 | 270.996 | 260.801 | 2,351.152 | |||
| Payments | (5) | 293.147 | 517.342 | 566.045 | 407.126 | 349.586 | 217.905 | 2,351.152 | |||
| TOTAL appropriations | Commitments | =4+ 6 | 490.400 | 702.300 | 633.300 | 274.500 | 274.500 | 2,375.000 | |||
| Payments | =5+ 6 | 294.240 | 519.460 | 569.480 | 410.630 | 353.160 | 228.030 | 2,375.000 |
The total appropriations to be implemented by the future Chips Joint Undertaking under Horizon Europe and Digital Europe, including appropriations covering former activities of the KDT Joint Undertaking that are not part of the Chips for Europe Initiative amount to EUR 4 175 million. It will be split between operational (Title 3) and support (Title 1 and Title 2) expenditure as follows:
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | |||
| Title 1 | Commitments | (4) | 1.804 | 1.861 | 2.732 | 3.516 | 4.508 | 4.595 | 18.011 | - | 37.027 |
| Payments | (5) | 1.804 | 1.861 | 2.732 | 3.516 | 4.508 | 4.595 | 4.685 | 13.326 | 37.027 | |
| Title 2 | Commitments | (4) | 0.559 | 0.649 | 0.963 | 1.274 | 1.637 | 1.666 | 6.399 | - | 13.147 |
| Payments | (5) | 0.559 | 0.649 | 0.963 | 1.274 | 1.637 | 1.666 | 1.685 | 4.714 | 13.147 | |
| Title 3 | Commitments | (4) | 207.637 | 247.490 | 776.705 | 997.510 | 887.155 | 513.238 | 495.090 | 4,124.826 | |
| Payments | (5) | 51.909 | 113.782 | 489.161 | 758.534 | 836.432 | 674.696 | 604.378 | 595.933 | 4,124.826 | |
| TOTAL appropriations | Commitments | =4+ 6 | 210.000 | 250.000 | 780.400 | 1,002.300 | 893.300 | 519.500 | 519.500 | 4,175.000 | |
| Payments | =5+ 6 | 54.272 | 116.292 | 492.855 | 763.324 | 842.576 | 680.958 | 610.749 | 613.973 | 4,175.000 |
Heading of multiannual financial framework | 7 | ‘Administrative expenditure’ |
This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative Financial Statement (Annex V to the internal rules), which is uploaded to DECIDE for interservice consultation purposes.
EUR million (to three decimal places)
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | TOTAL | |||
| DG CNECT | ||||||||||
| □ Human resources | 1.125 | 1.125 | 1.125 | 1.125 | 1.125 | 5.625 | ||||
| □ Other administrative expenditure | ||||||||||
| TOTAL DG CNECT | 1.125 | 1.125 | 1.125 | 1.125 | 1.125 | 5.625 |
| TOTAL appropriations under HEADING 7 of the multiannual financial framework | (Total commitments = Total payments) | 1.125 | 1.125 | 1.125 | 1.125 | 1.125 | 5.625 |
EUR million (to three decimal places)
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | |||
| TOTAL appropriations under HEADINGS 1 to 7 of the multiannual financial framework | Commitments | 709.627 | 910.588 | 821.895 | 432.405 | 431.110 | - | 3,305.625 | |||
| Payments | 421.813 | 674.093 | 738.438 | 572.261 | 504.728 | 394.291 | 3,305.625 |
3.2.2.Estimated output funded with operational appropriations
The indicative objects and outputs in the table below are first drafts, largely based on the indicators provided in Annex II of the proposed Regulation. More refined definitions are expected to become available in a later stage.
Commitment appropriations in EUR million (to three decimal places)
| Indicate objectives and outputs | Year 2023 | Year 2024 | Year 2025 | Year 2026 | Year 2027 | TOTAL | ||||||||
| Type 75 | Average cost | No | Cost | No | Cost | No | Cost | No | Cost | No | Cost | Total No | Total cost | |
| SPECIFIC OBJECTIVE No 1 “Chips for Europe Initiative” | ||||||||||||||
| - Output | Number of legal entities involved in actions | 154.241 | 198.938 | 179.800 | 96.679 | 96.383 | 726.041 | |||||||
| - Output | Number of design tools developed/integrated | 76.811 | 99.070 | 89.539 | 48.145 | 47.998 | 361.563 | |||||||
| - Output | Amount co-invested in design capacities and pilot lines | 117.984 | 152.174 | 137.534 | 73.953 | 73.726 | 555.370 | |||||||
| - Output | Number of users accessing design capacities and pilot lines | 95.818 | 123.584 | 111.695 | 60.059 | 59.875 | 451.030 | |||||||
| - Output | Number of businesses using services of competence centres | 65.080 | 83.939 | 75.864 | 40.792 | 40.667 | 306.343 | |||||||
| - Output | Number of persons receiving training | 43.914 | 56.639 | 51.191 | 27.525 | 27.441 | 206.710 | |||||||
| - Output | Amount of investment in the EU by semiconductor companies | 120.654 | 155.618 | 140.648 | 75.627 | 75.395 | 567.942 | |||||||
| - Output | Amount of investment in the EU by semiconductor companies | 34.000 | 39.500 | 34.500 | 8.500 | 8.500 | 125.000 | |||||||
| Subtotal for specific objective No 1 | 708.502 | 909.463 | 820.770 | 431.280 | 429.985 | 3,300.000 | ||||||||
| SPECIFIC OBJECTIVE No 2 “Security of supply” | ||||||||||||||
| - Output | Number of applications for IPF/OEF assessed | 0.500 | 0.500 | 0.500 | 0.500 | 0.500 | 2.500 | |||||||
| Subtotal for specific objective No 2 | 0.500 | 0.500 | 0.500 | 0.500 | 0.500 | 2.500 | ||||||||
| SPECIFIC OBJECTIVE No 3 “Preparedness and Monitoring” | ||||||||||||||
| - Output | Number of organisations for which supply chain data is gathered | 0.625 | 0.625 | 0.625 | 0.625 | 0.625 | 3.125 | |||||||
| Subtotal for specific objective No 3 | 0.625 | 0.625 | 0.625 | 0.625 | 0.625 | 3.125 | ||||||||
| TOTALS | 709.627 | 910.588 | 821.895 | 432.405 | 431.110 | 3,305.625 |
3.2.3.Summary of estimated impact on administrative appropriations
The proposal/initiative does not require the use of appropriations of an administrative nature
The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:
EUR million (to three decimal places)
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | TOTAL |
| HEADING 7 of the multiannual financial framework | ||||||||
| Human resources | 1.125 | 1.125 | 1.125 | 1.125 | 1.125 | 5.625 | ||
| Other administrative expenditure | ||||||||
| Subtotal HEADING 7 of the multiannual financial framework | 1.125 | 1.125 | 1.125 | 1.125 | 1.125 | 5.625 |
| Outside HEADING 7 76 of the multiannual financial framework | ||||||||
| Human resources | ||||||||
| Other expenditure of an administrative nature | ||||||||
| Subtotal outside HEADING 7 of the multiannual financial framework |
| TOTAL | 1.125 | 1.125 | 1.125 | 1.125 | 1.125 | 5.625 |
As this is a new initiative, there are no staff from the DG who are already assigned to management of the action and who could therefore be redeployed within the DG. The human resources required should therefore be met with an additional allocation which should be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
3.2.3.1.Estimated requirements of human resources
The proposal/initiative does not require the use of human resources.
The proposal/initiative requires the use of human resources, as explained below:
The table below is the additional staff for the Chips JU as a result of the proposed Regulation.
Estimate to be expressed in full time equivalent units
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | |
| □ Establishment plan posts (officials and temporary staff) | |||||||||||
| Other budget lines (specify): JU staff (TA) | 3 | 5 | 8 | 8 | 8 | 8 | 5 | 4 | 2 | ||
| □ External staff (in Full Time Equivalent unit: FTE) 77 | |||||||||||
| Other budget lines (specify): JU staff (CA) | 3 | 7 | 10 | 10 | 10 | 10 | 10 | 10 | 4 | ||
| Other budget lines (specify): JU staff (END) | 0 | 0 | 1 | 1 | 1 | 1 | 0 | 0 | 0 | ||
| TOTAL | 6 | 12 | 19 | 19 | 19 | 19 | 15 | 14 | 6 |
XX is the policy area or budget title concerned.
As this is a new initiative, there are no staff from the DG who are already assigned to management of the action and who could therefore be redeployed within the DG. The human resources required should therefore be met with an additional allocation which should be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
The table below is the total staff for the Chips JU as a result of the proposed Regulation.
Estimate to be expressed in full time equivalent units
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | |
| □ Establishment plan posts (officials and temporary staff) | |||||||||||
| Other budget lines (specify): JU staff (TA) | 14 | 14 | 14 | 17 | 19 | 22 | 22 | 22 | 22 | 13 | 10 |
| □ External staff (in Full Time Equivalent unit: FTE) 78 | |||||||||||
| Other budget lines (specify): JU staff (CA) | 16 | 16 | 16 | 19 | 23 | 26 | 26 | 26 | 26 | 26 | 26 |
| Other budget lines (specify): JU staff (END) | 0 | 0 | 0 | 1 | 1 | 2 | 2 | 2 | 2 | 0 | 0 |
| TOTAL | 30 | 30 | 30 | 37 | 43 | 50 | 50 | 50 | 50 | 39 | 36 |
Additional Commission staff as a result of the proposed Regulation consists of 5 FTEs Officials and 4 FTEs Contractual Agents for every year of the period 2023-2027.
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |
| • Establishment plan posts (officials and temporary staff) | |||||||
| 20 01 02 01 (Headquarters and Commission’s Representation Offices) | 5 | 5 | 5 | 5 | 5 | ||
| • External staff (in Full Time Equivalent unit: FTE) 79 | |||||||
| Other budget lines (specify): Commission staff (CA) | 4 | 4 | 4 | 4 | 4 | ||
| TOTAL | 9 | 9 | 9 | 9 | 9 |
As this is a new initiative, there are no staff from the DG who are already assigned to management of the action and who could therefore be redeployed within the DG. The human resources required should therefore be met with an additional allocation which should be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
Description of tasks to be carried out:
| Officials and temporary staff | Officials: - Supervision of the Chips Joint Undertaking - Supervision of the correct implementation of the obligations set by the Regulation for private companies and Member States - Preparation and drafting of implementing and delegated acts, in compliance with this Regulation - Conducting investigations, audits and other analysis, including data analytics - Administrative support to the European Semiconductor Board and organisation of meetings, preparation of opinions and other support to the European Semiconductor Board Temporary agents are staff of the joint undertaking: - See article 19 of the Council Regulation (EU) 2021/2085 establishing the Joint Undertakings under Horizon Europe |
| External staff | External staff at the European Commission: - Supervision of the Chips Joint Undertaking - Conducting investigations, audits and other analysis - Administrative support to the European Semiconductor Board and organisation of meetings, preparation of opinions and other support to the European Semiconductor Board External staff at the joint undertaking: - See article 19 of the Council Regulation (EU) 2021/2085 establishing the Joint Undertakings under Horizon Europe |
3.2.4.Compatibility with the current multiannual financial framework
The proposal/initiative:
can be fully financed through redeployment within the relevant heading of the Multiannual Financial Framework (MFF).
| From line | Amount (EUR million) | To Line | |
| 01 02 03 01 | European Innovation Council | 300.000 | earmarked |
| 01 02 02 30 | Cluster Civil Security for Society | 150.000 | 01 02 02 42 |
| 01 02 02 40 | Cluster Digital, Industry and Space | 400.000 | 01 02 02 42 |
| 01 02 02 40 | Cluster Digital, Industry and Space | 400.000 | 02 04 06 11 |
| 01 02 02 42 | Horizon Europe Programme — Key Digital Technologies joint undertaking | 500.000 | earmarked |
| 01 02 02 50 | Cluster Climate, Energy and mobility | 300.000 | 01 02 02 42 |
| Subtotal HE | Horizon Europe Programme | 2,050.000 | |
| 02 03 01 | Connecting Europe Facility (CEF) — Transport | 250.000 | 02 04 06 11 |
| 02 03 03 01 | Connecting Europe Facility (CEF) — Digital | 150.000 | 02 04 06 11 |
| Subtotal CEF | Connecting Europe Facility (CEF) | 400.000 | |
| 02 04 01 10 | Digital Europe programme - Cybersecurity | 60.000 | 02 04 06 11 |
| 02 04 01 11 | Digital Europe programme - European Cybersecurity Industrial, Technology and Research Competence Centre | 60.000 | 02 04 06 11 |
| 02 04 02 11 | Digital Europe programme - High-Performance Computing joint undertaking (EuroHPC) | 150.000 | 02 04 06 11 |
| 02 04 03 | Digital Europe programme - Artificial intelligence | 220.000 | 02 04 06 11 |
| 02 04 04 | Digital Europe programme - Skills | 60.000 | 02 04 06 11 |
| 02 04 05 | Digital Europe programme - Deployment | 50.000 | 02 04 06 11 |
| Subtotal DEP | Digital Europe programme | 600.000 | |
| Total | 3,050.000 |
requires use of the unallocated margin under the relevant heading of the MFF and/or use of the special instruments as defined in the MFF Regulation.
Explain what is required, specifying the headings and budget lines concerned, the corresponding amounts, and the instruments proposed to be used.
| Amount (EUR million) | To Line | ||
| - | Unallocated margin Heading 1 | 250.000 | 02 04 06 11 |
requires a revision of the MFF.
Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts.
EUR million (to three decimal places)
3.2.5.Third-party contributions
The proposal/initiative:
does not provide for co-financing by third parties
provides for the co-financing by third parties estimated below:
Appropriations in EUR million (to three decimal places)
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total | |
| Participating States | 489.307 | 700.182 | 629.865 | 270.996 | 260.801 | 2,351.152 | ||
| TOTAL appropriations co-financed | 489.307 | 700.182 | 629.865 | 270.996 | 260.801 | 2,351.152 |
Participating States are expected to contribute an amount to the additional operational expenditure that is commensurate to the Union contribution.
Members other than the Union are not expected to contribute to the additional administrative costs of the JU.
3.3.Estimated impact on revenue
The proposal/initiative has no financial impact on revenue.
The proposal/initiative has the following financial impact:
on own resources
on other revenue
please indicate, if the revenue is assigned to expenditure lines
EUR million (to three decimal places)
| Budget revenue line: | Appropriations available for the current financial year | Impact of the proposal/initiative 80 | ||||||
| Year N | Year N+1 | Year N+2 | Year N+3 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | ||||
| Article …………. |
For assigned revenue, specify the budget expenditure line(s) affected.
[…]
Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).
[…]
ANNEX
to the LEGISLATIVE FINANCIAL STATEMENT
Name of the proposal/initiative:
Proposal for a Regulation of the European Parliament and of the Council establishing a framework of measures for strengthening Europe’s semiconductor ecosystem (Chips Act) and the proposal for a Council Regulation amending Council Regulation (EU) 2021/2085 establishing the Joint Undertakings under Horizon Europe
1 NUMBER and COST of HUMAN RESOURCES CONSIDERED NECESSARY
2.COST of OTHER ADMINISTRATIVE EXPENDITURE
3 TOTAL ADMINISTRATIVE COSTS
4 METHODS of CALCULATION USED for ESTIMATING COSTS
4.1 Human resources
4.2 Other administrative expenditure
This annex must accompany the legislative financial statement when the inter-services consultation is launched.
The data tables are used as a source for the tables contained in the legislative financial statement. They are strictly for internal use within the Commission.
1Cost of human resources considered necessary
◻ The proposal/initiative does not require the use of human resources
■ The proposal/initiative requires the use of human resources, as explained below:
EUR million (to three decimal places)
| HEADING 7 of the multiannual financial framework | Year 2021 | Year 2022 | Year 2023 | Year 2024 | Year 2025 | Year 2026 | Year 2027 | TOTAL | |||||||||
| FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | ||
| • Establishment plan posts (officials and temporary staff) | |||||||||||||||||
| 20 01 02 01 - Headquarters and Representation offices | AD | 5 | 0.785 | 5 | 0.785 | 5 | 0.785 | 5 | 0.785 | 5 | 0.785 | 3.925 | |||||
| AST | |||||||||||||||||
| 20 01 02 03 - Union Delegations | AD | ||||||||||||||||
| AST | |||||||||||||||||
| • External staff 81 | |||||||||||||||||
| 20 02 01 and 20 02 02 – External personnel – Headquarters and Representation offices | AC | 4 | 0.340 | 4 | 0.340 | 4 | 0.340 | 4 | 0.340 | 4 | 0.340 | 1.700 | |||||
| END | |||||||||||||||||
| INT | |||||||||||||||||
| 20 02 03 – External personnel - Union Delegations | AC | ||||||||||||||||
| AL | |||||||||||||||||
| END | |||||||||||||||||
| INT | |||||||||||||||||
| JPD | |||||||||||||||||
| Other HR related budget lines (specify) | |||||||||||||||||
| Subtotal HR – HEADING 7 | 9 | 1.125 | 9 | 1.125 | 9 | 1.125 | 9 | 1.125 | 9 | 1.125 | 5.625 |
The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
| Outside HEADING 7 of the multiannual financial framework | Year 2021 | Year 2022 | Year 2023 | Year 2024 | Year 2025 | Year 2026 | Year 2027 and subsequent | TOTAL | ||||||||||
| FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | FTE | Appropriations | |||
| • Establishment plan posts (officials and temporary staff) | ||||||||||||||||||
| 01 01 01 01 Indirect Research 82 01 01 01 11 Direct Research Other (please specify) | AD | |||||||||||||||||
| AST | ||||||||||||||||||
| • External staff 83 | ||||||||||||||||||
| External staff from operational appropriations (former ‘BA’ lines). | - at Headquarters | AC | ||||||||||||||||
| END | ||||||||||||||||||
| INT | ||||||||||||||||||
| - in Union delegations | AC | |||||||||||||||||
| AL | ||||||||||||||||||
| END | ||||||||||||||||||
| INT | ||||||||||||||||||
| JPD | ||||||||||||||||||
| 01 01 01 02 Indirect Research 01 01 01 12 Direct research Other (please specify) 84 | AC | |||||||||||||||||
| END | ||||||||||||||||||
| INT | ||||||||||||||||||
| Other budget lines HR related (specify) | ||||||||||||||||||
| Subtotal HR – Outside HEADING 7 | ||||||||||||||||||
| Total HR (all MFF Headings) | 9 | 1.125 | 9 | 1.125 | 9 | 1.125 | 9 | 1.125 | 9 | 1.125 | 5.625 |
The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
2Cost of other administrative expenditure
■ The proposal/initiative does not require the use of administrative appropriations
◻ The proposal/initiative requires the use of administrative appropriations, as explained below:
EUR million (to three decimal places)
| HEADING 7 of the multiannual financial framework | Year N 85 | Year N+1 | Year N+2 | Year N+3 | Year N+4 | Year N+5 | Year N+7 | Total |
| At headquarters or within EU territory: | ||||||||
| 20 02 06 01 - Mission and representation expenses | ||||||||
| 20 02 06 02 - Conference and meeting costs | ||||||||
| 20 02 06 03 - Committees 86 | ||||||||
| 20 02 06 04 Studies and consultations | ||||||||
| 20 04 – IT expenditure (corporate) 87 | ||||||||
| Other budget lines non-HR related (specify where necessary) | ||||||||
| In Union delegations | ||||||||
| 20 02 07 01 - Missions, conferences and representation expenses | ||||||||
| 20 02 07 02 - Further training of staff | ||||||||
| 20 03 05 – Infrastructure and logistics | ||||||||
| Other budget lines non-HR related (specify where necessary) | ||||||||
| Subtotal Other - HEADING 7 of the multiannual financial framework |
EUR million (to three decimal places)
| Outside HEADING 7 of the multiannual financial framework | Year 2021 | Year 2022 | Year 2023 | Year 2024 | Year 2025 | Year 2026 | Year 2027 | Total |
| Expenditure on technical and administrative assistance (not including external staff) from operational appropriations (former 'BA' lines): | ||||||||
| - at Headquarters | ||||||||
| - in Union delegations | ||||||||
| Other management expenditure for research | ||||||||
| Policy IT expenditure on operational programmes 88 | ||||||||
| Corporate IT expenditure on operational programmes 89 | ||||||||
| Other budget lines non-HR related (specify where necessary) | ||||||||
| Sub-total Other – Outside HEADING 7 of the multiannual financial framework | ||||||||
| Total Other admin expenditure (all MFF Headings) |
3Total administrative costs (all Headings MFF)
EUR million (to three decimal places)
| Summary | Year 2021 | Year 2022 | Year 2023 | Year 2024 | Year 2025 | Year 2026 | Year 2027 | Total |
| Heading 7 - Human Resources | 1.125 | 1.125 | 1.125 | 1.125 | 1.125 | 5.625 | ||
| Heading 7 – Other administrative expenditure | ||||||||
| Sub-total Heading 7 | 1.125 | 1.125 | 1.125 | 1.125 | 1.125 | 5.625 | ||
| Outside Heading 7 – Human Resources (Title 1 JU) | ||||||||
| Outside Heading 7 – Other administrative expenditure (Title 2 JU) | ||||||||
| Sub-total Other Headings | ||||||||
| TOTAL HEADING 7 and Outside HEADING 7 | 1.125 | 1.125 | 1.125 | 1.125 | 1.125 | 5.625 |
The administrative appropriations required will be met by the appropriations which are already assigned to management of the action and/or which have been redeployed, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of existing budgetary constraints.
4Methods of calculation used to estimate costs
4.1 Human resources
This part sets out the method of calculation used to estimate the human resources considered necessary (workload assumptions, including specific jobs (Sysper 2 work profiles), staff categories and the corresponding average costs)
HEADING 7 of the multiannual financial framework
NB: The average costs for each category of staff at Headquarters are available on BudgWeb:
https://myintracomm.ec.europa.eu/budgweb/EN/pre/legalbasis/Pages/pre-040-020_preparation.aspx
• Officials and temporary staff
Full-time equivalents multiplied by average costs (€ 157 000)
• External staff
Full-time equivalents multiplied by average costs (€ 85 000)
Outside HEADING 7 of the multiannual financial framework
• Only posts financed from the research budget
• External staff
4.2Other administrative expenditure
Give details of the method of calculation used for each budget line
and in particular the underlying assumptions (e.g. number of meetings per year, average costs, etc.)
HEADING 7 of the multiannual financial framework
Outside HEADING 7 of the multiannual financial framework
(1) In semiconductor manufacturing, the process technology has traditionally been correlated with the transistor dimension. The process “node” is measured in nanometres (nm); 1 nanometre = 1 billionth of a meter. Smaller process nodes produce smaller transistors, which are faster and more power-efficient. The state of the art process node is 5 nm today, with 3 nm in pre-production, and 2 nm under development.
(2) https://news.samsung.com/global/samsung-electronics-announces-new-advanced-semiconductor-fab-site-in-taylor-texas , 24.11.2021.
(3) https://semianalysis.substack.com/p/tsmc-3nm-wafer-shipments-pushed-into , 14.10.2021
(4) https://min.news/en/tech/def29226dea2b06f47efea4aae13e8f3.html , 22.01.2022
(5) Strengthening the Global Semiconductor Supply Chain in an uncertain era, BCGxSIA, April 2021. https://www.bcg.com/publications/2021/strengthening-the-global-semiconductor-supply-chain
(6) The Digital Compass fixed as an objective that by 2030 “the production of cutting-edge and sustainable semiconductors in Europe including processors is at least 20% of world production in value” (COM(2021) 118, 9.3.2021). The Proposal for the 2030 Policy Programme “Path to the Digital Decade” has reaffirmed this ambition (see footnote 15).
(7) Moore’s law is the observation that the number of transistors in an integrated circuit doubles about every two years.
(8) State of the Union address 2021. https://ec.europa.eu/info/sites/default/files/soteu_2021_address_en_0.pdf
(9) COM(2022) 45, 08.02.2022. A Chips Act for Europe.
(10)
Electronic Design Automation tools, i.e. software tools for designing integrated circuits.
(11) ‘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.
(12) 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. Open EU Foundries are first-of-a-kind semiconductor front-end or back-end, or both, manufacturing facilities in the Union that offer production capacity to unrelated undertakings and thereby contribute to the security of supply for the internal market.
(13) 31 % of cyber-attacks in 2020 targeted the EU. https://www.ibm.com/security/data-breach/threat-intelligence
(14) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2030 Digital Compass: the European way for the Digital Decade, COM(2021) 118, 9.3.2021.
(15) COM(2021) 574 final. Proposal for a Decision of the European Parliament and of the Council establishing the 2030 Policy Programme “Path to the Digital Decade”. 15.9.2021.
(16) Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, “Updating the 2020 New Industrial Strategy: Building a stronger Single Market for Europe’s recovery” COM(2021) 350 final.
(17) The Commission launched the Alliance on Processors and Semiconductor technologies in July 2021. https://digital-strategy.ec.europa.eu/en/policies/alliance-processors-and-semiconductor-technologies .
(18) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions “An EU Strategy on Standardisation - Setting global standards in support of a resilient, green and digital EU single market ”, COM(2022) 31.
(19) C(2022) 546 Commission Notice - The 2022 annual Union work programme for European standardisation.
(20) COM(2021) 70, Action Plan on synergies between civil, defence and space industries.
(21) Joint declaration on processors and semiconductor technologies. 7 December 2020.
(22) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. A competition policy fit for new challenges, COM(2021) 713, 18 November 2021.
(23) Regulation (EU) 2021/2085 of the Council of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014, OJ L 427, 30.11.2021, p. 17.
(24) Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing the Digital Europe Programme and repealing Decision (EU) 2015/2240, OJ L 166, 11.5.2021, p. 1.
(25) Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013, OJ L 170, 12.5.2021, p. 1.
(26) Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017, OJ L 107, 26.3.2021, p. 30.
(27) Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility, OJ L 57, 18.2.2021, p. 17.
(28) Communication on the EU Security Union Strategy. COM(2020) 605 final.
(29) COM(2022) 47, 08.02.2022.
(30) Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions. The European Green Deal. COM(2019) 640, 11.12.2019.
(31) Proposal for a Directive of the European Parliament and of the Council on energy efficiency (recast). COM(2021) 558, 14.7.2021.
(32) https://digital-strategy.ec.europa.eu/en/library/energy-efficient-cloud-computing-technologies-and-policies-eco-friendly-cloud-market
(33) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. 'Fit for 55': delivering the EU's 2030 Climate Target on the way to climate neutrality. COM(2021) 550, 14.7.2021.
(34) For instance, the share of electric cars in new sales in Europe is increasing and is expected to make up 14% in 2021. https://think.ing.com/articles/slow-start-for-electric-vehicles-in-the-us-but-times-are-changing
(35) https://www.idtechex.com/en/research-article/ev-power-electronics-driving-semiconductor-demand-in-a-chip-shortage/24820
(36) COM(2020) 98 final, 11.03.2020.
(37) https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/13141-Digitalising-the-energy-sector-EU-action-plan_en
(38) For instance, it has been announced that Spain intends to reform its National Security Law (Ley de Seguridad Nacional) in this sense.
(39) Four Member States (France, Germany, Italy, and Austria) and the United Kingdom participated in the first IPCEI. It features 32 companies, with EUR 1.9 billion public support and a contribution by industry of roughly EUR 6 billion.
(40) ‘State of the World' Special Address by President von der Leyen at the World Economic Forum. https://ec.europa.eu/commission/presscorner/detail/en/speech_22_443
(41) For instance: USA: https://www.congress.gov/bill/117th-congress/senate-bill/1260?s=1&r=52 China: https://crsreports.congress.gov/product/pdf/R/R46767 Japan: https://www.reuters.com/technology/japan-create-scheme-subsidise-domestic-chip-output-nikkei-2021-11-07/ South Korea: https://spectrum.ieee.org/south-koreas-450billion-investment-latest-in-chip-making-push
(42) https://ecscollaborationtool.eu/ecs-sria-workshops.html
(43) https://digital-strategy.ec.europa.eu/en/news/ceo-roundtable-semiconductors-10-january-2022
(44) A non-exhaustive list: Measuring distortions in international markets: The semiconductor value chain OECD 2019; The Geopolitics of Semiconductors, prepared by EURASIA group, Sept 2020; The global semiconductor value chain, Stiftung Neue Verantwortung, Oct 2020; The Weak Links in China's Drive for Semiconductors, Montaigne institute, Jan 2021; Strengthening the Semiconductor supply chain in an uncertain Era, BCGxSIA, April 2021; SIA Factbook, May 2021; Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-Based Growth, A Report by the White House, June 2021; Mapping China’s semiconductor ecosystem in global context, Stiftung Neue Verantwortung, June 2021; Semiconductors Global Policy Review Access Partnership, Sept 2021; Semiconductors: U.S. Industry, Global Competition, and Federal Policy, Congressional Report Service October 2021; Semiconductor Strategy for Germany and Europe, ZVEI, Oct 2021; A semiconductor strategy for the European Union, Bundesagentur für Sprunginnovationen (SPRIN-D), 2021; Understanding the global chip shortage Stiftung Neue Verantwortung, Nov 2021.
(45) OJ C 444I , 22.12.2020, p. 3–3.
(46) In line with the conclusion above on consistency of the EU Chips Act with other Union policies, in particular the European Green Deal and the Fit for 55 package, this should not negatively affect the overall CEF Transport objectives and the deployment of sustainable transport infrastructure.
(47) OJ L 433I, 22.12.2020, p. 28–46.
(48) COM(2020) 829. 16.12.2020.
(49) OJ C , , p. .
(50) OJ C , , p. .
(51) Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013. (OJ L 170, 12.5.2021, p. 1).
(52) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).
(53) Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).
(54) Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing the Digital Europe Programme and repealing Decision (EU) 2015/2240. (OJ L 166, 11.5.2021, p. 1).
(55) […].
(56) Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora.
(57) Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy.
(58) Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union (OJ L 79I , 21.3.2019, p. 1–14).
(59) Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items (OJ L 134, 29.5.2009, p. 1–269).
(60) Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34).
(61) COM(2020) 829. 16.12.2020.
(62) Council Directive 85/374/EEC of 25 July 1985 on the approximation of the laws, regulations and administrative provisions of the Member States concerning liability for defective products (85/374/EEC) (OJ L 210, 7.8.1985, p. 29).
(63) OJ L 123, 12.5.2016, p. 1.
(64) Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers, (OJ L 55, 28.2.2011, p. 13).
(65) Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).
(66) Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).
(67) As referred to in Article 58(2)(a) or (b) of the Financial Regulation.
(68) https://ec.europa.eu/transparency/documents-register/api/files/COM(2013)298_0/de00000000485396?rendition=false
(69) Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.
(70) EFTA: European Free Trade Association.
(71) Candidate countries and, where applicable, potential candidates from the Western Balkans.
(72) Up to 300.000 EUR million will be earmarked under the EIC for being used for the purpose of the Chips Europe Initiative. The yearly programming of the envelope is indicative.
(73) Up to 300.000 EUR million will be earmarked under the EIC for being used for the purpose of the Chips for Europe Initiative. The yearly profiling of the envelope is purely indicative.
(74) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
(75) Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).
(76) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
(77) AC= Contract Staff; AL = Local Staff; END= Seconded National Expert; INT = agency staff; JPD= Junior Professionals in Delegations.
(78) AC= Contract Staff; AL = Local Staff; END= Seconded National Expert; INT = agency staff; JPD= Junior Professionals in Delegations.
(79) AC= Contract Staff; AL = Local Staff; END= Seconded National Expert; INT = agency staff; JPD= Junior Professionals in Delegations.
(80) As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 20 % for collection costs.
(81) AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT= agency staff; JPD= Junior Professionals in Delegations.
(82) Please choose the relevant budget line, or specify another if necessary; in case more budget lines are concerned, staff should be differentiated by each budget line concerned
(83) AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT= agency staff; JPD= Junior Professionals in Delegations.
(84) Please choose the relevant budget line, or specify another if necessary; in case more budget lines are concerned, staff should be differentiated by each budget line concerned
(85) Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for instance: 2021). The same for the following years
(86) Specify the type of committee and the group to which it belongs.
(87) The opinion of DG DIGIT – IT Investments Team is required (see the Guidelines on Financing of IT, C(2020)6126 final of 10.9.2020, page 7)
(88) The opinion of DG DIGIT – IT Investments Team is required (see the Guidelines on Financing of IT, C(2020)6126 final of 10.9.2020, page 7)
(89) This item includes local administrative systems and contributions to the co-financing of corporate IT systems (see the Guidelines on Financing of IT, C(2020)6126 final of 10.9.2020)