European Union launches tech sovereignty initiative to boost chips, cloud and AI at home

The European Union launched a 'tech sovereignty' initiative on Wednesday to reduce reliance on U.S. cloud/AI services and Asian microchips, proposing expanded chip production, data center capacity, and homegrown alternatives. The move follows concerns over potential 'weaponization' of foreign tech, highlighted by Microsoft’s suspension of the International Criminal Court’s email account under U.S. sanctions.
European Union leaders announced a 'tech sovereignty' initiative on Wednesday aimed at reducing dependence on American cloud and AI providers as well as Asian semiconductor suppliers. The 27-nation bloc introduced measures to foster European alternatives, driven by fears that foreign technologies could be exploited against the continent. Concerns intensified after the Trump administration sanctioned the International Criminal Court’s top prosecutor, leading Microsoft to disable his email account, raising alarms about hidden vulnerabilities in U.S. tech services. A key component of the plan is an expansion of the EU’s 2023 Chips Act, designed to accelerate local semiconductor production by streamlining regulations for chip fabrication plants and building a self-sufficient European chipmaking industry. Europe’s reliance on Asia’s supply chain was underscored last year during a dispute at Nexperia, a Chinese-owned chipmaker based in the Netherlands. The initiative also targets cloud and AI infrastructure, with goals to triple Europe’s data center capacity within five to seven years to meet surging demand from AI advancements. The proposals, led by the European Commission, will now require approval from the European Parliament and the Council of the European Union before implementation. European Commission Executive Vice-President Henna Virkkunen emphasized the need for Europe to 'make its own choices' and avoid over-reliance on single suppliers or third countries. She warned that technological leadership would shape the future, urging the bloc to take a central role in innovation. The push reflects broader geopolitical tensions, where technology and sovereignty are increasingly intertwined.
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