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EU establishes semiconductor supply chain ‘alert system’

May 18, 2023
EU Alarm Clock

The European Commission has launched a pilot project to warn of potential problems in the semiconductor supply chain ahead of setting up the European Semiconductor Board.

The Semiconductor Alert System will be included under the third pillar of the European Chips Act, which aims to strengthen the preparedness and monitoring of the European semiconductor supply chain.

The pilot allows semiconductor companies — and customers — to raise awareness of any critical disruption along the semiconductors’ value chain. This is intended to help the Commission gather information needed to establish a precise assessment of risks and to quickly react to any potential crisis situation via the European Semiconductor Expert Group (ESEG).

The recommendation that accompanied the EU Chips Act led to the creation of the European Semiconductor Expert Group (ESEG), a platform that coordinates semiconductor supply chain efforts while assisting the EU Commission with the implementation of existing and future regulations.

The alert system requires a precise assessment of risks, more supply chain transparency, and resilience against potential disruptions to enable decision-makers to respond to shortages. This needs timely access to information coming directly from companies, which will be EU-survey secure platforms, to which only the European Commission has access.

The Commission says it will respect the confidentiality of information and data obtained via this system and appropriate measures will be taken to react to the information received and, when considered necessary, to get back to the concerned parties.

Once this proposal is completely implemented into the EU Chips Act, the ESEG will be replaced by the European Semiconductor Board, which will be composed of representatives from Member States and chaired by the European Commission.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics