The European Union is advancing draft legislation that would give Brussels emergency authority to seize control of semiconductor supplies during crises. The proposed powers could force chipmakers to override existing customer contracts, marking a significant shift in how the bloc approaches critical technology supply chains.

Under the draft law, semiconductor companies would face mandatory requirements to prioritize EU demand over private contracts when deemed necessary for national security or public emergencies. This represents the EU's latest attempt to secure its chip supply after pandemic-era shortages exposed vulnerabilities in global supply chains.

The move follows broader Western efforts to reshore semiconductor manufacturing and reduce dependence on Asian suppliers, particularly China and Taiwan. Industry analysts expect the proposal to face pushback from chipmakers concerned about contractual obligations and international trade agreements.

The legislation signals growing government intervention in private supply chains, potentially reshaping how semiconductor companies operate across Europe and setting precedent for other regions seeking similar emergency authorities.