The European Union is drafting legislation to grant the European Commission emergency powers over semiconductor supply chains. This law would allow the Commission to compel chipmakers to prioritize orders for critical sectors like defense and medical devices. These mandates would override existing private contracts during shortages.
The proposal is a pillar of the European Chips Act, designed to reduce reliance on Asian and U.S. suppliers. The Commission would gain the authority to act as a central buyer for member states.
Companies face fines of up to €300,000 for failing to provide requested supply-chain data. The initiative aims to bolster the bloc's technological sovereignty.