The European Commission has proposed a European Technological Sovereignty Package covering semiconductors, cloud, AI, open source and energy digitalisation. The package includes two legislative proposals, the Chips Act 2.0 and the Cloud and AI Development Act, which will now be negotiated by the European Parliament and the Council.
The Chips Act 2.0 would introduce European semiconductor technology initiatives and strategic projects, including projects that bring innovative semiconductor manufacturing processes or products to the EU market or reduce strategic dependencies on third-country suppliers, meaning non-EU suppliers. EU member states would need to provide a one stop shop and single permit procedure, with a 12-month maximum period from a complete application.
The Cloud and AI Development Act would create four EU assurance levels for cloud services used by EU entities and public sector bodies. In practice, providers would need to show EU establishment, EU-based infrastructure and data localisation standards. Level 1 would be based on self-assessment. Levels 2 to 4 would require independent audits and stricter requirements on EU-based personnel, cybersecurity, subcontractors, third-country control and software supply chains. Public sector customers would generally need to use at least level 1 services. For public order-relevant activities in NIS2 sectors, national security, border management, defence, justice or law enforcement, contracting authorities would need level 2, 3 or 4 services.
The legislative proposals are supported by two related policy initiatives. The EU Open Source Strategy would promote European open alternatives in critical domains such as cloud, AI, cybersecurity and semiconductors. The Strategic Roadmap for Digitalisation and AI in Energy would address the energy side of digital infrastructure, including grid optimisation, energy efficiency, demand-side flexibility and the sustainable integration of data centres into the EU energy system.
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