EU pushes digital sovereignty with Chips Act 2.0 and AI/Cloud legislation

On 3 June 2026 the European Commission released a "European technological sovereignty package" (ETSP) that updates the EU’s approach to digital autonomy. The package introduces a revised Chips Act 2.0 to lessen dependence on non‑EU semiconductor suppliers, a Cloud and AI Development Act to foster home‑grown AI and cloud services, an open‑source software strategy and a roadmap for integrating digital infrastructure into the energy sector. The measures are intended to strengthen the EU’s position as an “AI continent”, simplify administrative burdens for small‑ and medium‑sized enterprises and build a more sovereign digital infrastructure.

An accompanying opinion notes that the original European Chips Act (Regulation 2023/1781) treats semiconductors as a matter of economic security and aims for roughly 20 % of global production by 2030. It emphasizes pilot lines, design infrastructure and strategic manufacturing capacity, but warns that without sufficient domestic demand from defence, hyperscalers and system houses, new capacity could become a subsidised exporter for non‑EU markets. The Act also creates monitoring and crisis‑response mechanisms to address future supply‑chain shocks.