EU package aims to boost AI and chips
Two new pieces of legislation are included in a package of measures that the European Commission is proposing in an effort to strengthen the EU’s capacity in semiconductors, AI, and cloud computing.
As well as legislation, the European Technological Sovereignty Package includes a plan to expand open-source alternatives in key technological areas and a roadmap for digitalisation and AI in the EU’s energy sector.
The first piece of legislation being proposed, the Chips Act 2.0, is aimed at building capacity in cutting-edge semiconductor technologies that power AI applications.
Third-country reliance
The commission says that it will speed up permits, deepen co-operation with “like-minded partners”, and introduce a new excellence label for Europe's semiconductor regions.
According to the EU body, the act will support investment and strategic projects, while addressing vulnerabilities that could put supply at risk.
A Chips Act was introduced in 2023, but the commission says that Europe still relies heavily on third countries for advanced production and chip design.
Data-centre capacity
The proposed Cloud and AI Development Act aims to triple data-centre capacity in Europe over the next five to seven years.
The commission says that the act will support research and innovation in cutting-edge and sustainable technologies, while balancing AI ambitions with climate commitments.
It will streamline conditions for deploying data centres across the EU and introduce a single EU-wide framework to assess cloud and AI sovereignty.
The EU body says that the measure will help protect critical applications and sensitive data, and support the development and roll-out of advanced cloud and AI technologies.
Strengths
Commission President Ursula von der Leyen said: “We cannot afford to depend on others for the technologies that keep our hospitals running, our energy grids stable, and our services secure.
“Europe has the talent, the research excellence, the industrial base and the single market. Together, we must turn these strengths into technological sovereignty,” she stated.
The two legislative proposals must now be negotiated by the EU Council and the European Parliament.