Regulation (EU) 2021/2085 is amended as follows:

in the entire Regulation, the words ‘Key Digital Technologies Joint Undertaking’ are replaced by the words ‘Chips Joint Undertaking’;

in Article 2, points 2, 3 and 4 are replaced by the following:

“founding member” means any legal entity established in a Member State, a country associated to Horizon Europe or, where applicable, associated with DEP, or an international organisation that is identified as a member of a joint undertaking in this Regulation or in one of its Annexes;

“associated member” means any legal entity established in a Member State, a country associated to Horizon Europe or, where applicable, associated to DEP, or an international organisation that accedes to a joint undertaking by signing a letter of commitment in accordance with Article 6(3) and subject to an approval in accordance with Article 7;

“participating state” means any Member State or country associated to Horizon Europe or, where applicable, associated to DEP upon notification of its participation in the activities of the relevant joint undertaking by means of a letter of commitment;’;

in Article 3, paragraph 3 is replaced by the following:

‘3. In order to take into account the duration of Horizon Europe and, where applicable, DEP, calls for proposals under the joint undertakings shall be launched at the latest by 31 December 2027. In duly justified cases, calls for proposals may be launched by 31 December 2028, at the latest.’

in Article 4(1), the following subparagraph is added:

‘The Chips Joint Undertaking shall also contribute to the general objective referred to in Article 4(1) of Regulation (EU) 2023/1781 of the European Parliament and of the Council ( *1 ) , the operational objectives referred to in Article 4(2), points (a) to (d), of Regulation (EU) 2023/1781 (“operational objectives 1 to 4”) and the general objectives of DEP referred to in Article 3(1) of Regulation (EU) 2021/694.

( *1 ) Regulation (EU) 2023/1781 of the European Parliament and of the Council of 13 September 2023 establishing a framework of measures for strengthening Europe’s semiconductor ecosystem and amending Regulation (EU) 2021/694 (Chips Act) ( OJ L 229, 18.9.2023, p. 1 ).’;"

in Article 10, paragraphs 2 and 3 are replaced by the following:

‘2. The amount of the Union contribution specified in Part Two may be increased with contributions from third countries associated to Horizon Europe in line with Article 16(5) of the Horizon Europe Regulation and, where applicable, to DEP in accordance with Article 10(1), point (d), of Regulation (EU) 2021/694, provided that the total amount by which the Union contribution is increased is at least matched by the contribution of members other than the Union, or their constituent or affiliated entities.

3. The Union contribution shall be paid from the appropriations in the general budget of the Union allocated to the Specific Programme implementing Horizon Europe and, where applicable, to DEP, in accordance with Article 62(1), point (c)(iv), and Article 154 of Regulation (EU, Euratom) 2018/1046 in the case of bodies referred to in Article 71 of that Regulation.’

in Article 12(1), the second and third subparagraphs are replaced by the following:

‘In addition to criteria set out in Article 22 of the Horizon Europe Regulation or, in the case of the Chips Joint Undertaking, in Article 18 of Regulation (EU) 2021/694, the work programme may include, as an annex, eligibility criteria regarding national legal entities.

Each participating state shall entrust the joint undertaking with the evaluation of the proposals according to the Horizon Europe Regulation and, where applicable, to Regulation (EU) 2021/694.’;

in Article 29, paragraph 2 is replaced by the following:

‘2. Budgetary commitments of the joint undertakings referred to in Article 3(1), points (b), (d), (g) and (h), may be divided into annual instalments. Until 31 December 2024, the cumulative amount of those budgetary commitments in instalments shall not exceed 50 % of the maximum Union contribution set out in Article 10. From January 2025, at least 20 % of the cumulative budget of the residual years shall not be covered by annual instalments.’

Article 126 is amended as follows:

paragraph 1 is amended as follows:

point (b) is replaced by the following:

establish Union scientific excellence and innovation leadership in emerging components and systems technologies, including in activities related to lower TRLs; and promote the active involvement of SMEs, which, for all research and innovation activities, including those related to the Chips for Europe Initiative established by Regulation (EU) 2023/1781, shall represent at least one third of the total number of participants in indirect actions and at least 20 % of public funding should go to them;’;

the following point is added:

achieve large-scale technological capacity building and support related research and innovation activities throughout the Union’s semiconductor value chain to enable development and deployment of cutting-edge semiconductor technologies, next-generation semiconductor technologies and cutting-edge quantum technologies and the innovation of established technologies that will reinforce advanced design, systems integration and chip production capabilities in the Union, thereby increasing the competitiveness of the Union; and contribute to the achievement of the green and digital transitions, in particular by reducing the climate impact of electronic systems, improving the sustainability of next-generation chips and strengthening the circular economy processes, contribute to quality jobs within the semiconductor ecosystem and address security-by-design principles, which provide protection against cybersecurity threats.’;

in paragraph 2, the following points are added:

build up advanced design capacities for integrated semiconductor technologies;

enhance existing and develop new advanced pilot lines across the Union to enable development and deployment of cutting-edge semiconductor technologies and next-generation semiconductor technologies;

build advanced technology and engineering capacities for accelerating the innovative development of cutting-edge quantum chips and associated semiconductor technologies;

establish a network of competence centres across the Union by enhancing existing or creating new facilities.’;

Article 128 is replaced by the following:

COUNCIL REGULATION (EU) 2023/1782 of 25 July 2023 amending Regulation (EU) 2021/2085 establishing the Joint Undertakings under Horizon Europe, as regards the Chips Joint Undertaking