EU proposes Chips Act 2.0 and Cloud and AI Act

The two legislative proposals at the heart of the package are Chips Act 2.0 and the Cloud and AI Development Act. Chips Act 2.0 builds on the original 2023 Chips Act – which, as Evertiq has reported, drew criticism for being unlikely to meet its own target of raising Europe's global semiconductor market share to 20% by 2030. 

The updated legislation aims to build capacity in cutting-edge semiconductor technologies, speed up permitting, deepen cooperation with trusted partners and introduce a new excellence label for European semiconductor regions, with a particular focus on AI-related chips.

The Cloud and AI Development Act targets a tripling of Europe's data centre capacity over the next five to seven years, streamlines conditions for deploying data centres across the EU and introduces a single EU-wide framework to assess cloud and AI sovereignty. It will also introduce sovereignty requirements for cloud providers operating in sensitive sectors.

The package is completed by an Open Source Strategy and a Strategic Roadmap for Digitalisation and AI in Energy. Together, the Commission says, these measures support Europe's ambition to become an AI continent and help reduce dependence on external suppliers for core digital technologies.

"We cannot afford to depend on others for the technologies that keep our hospitals running, our energy grids stable and our services secure. This is about protecting our citizens, defending our interests and making our own choices," said Commission President Ursula von der Leyen, in a press release.

The proposals will now be negotiated by the European Parliament and the Council of the EU. The Commission also intends to consult member states and the European Investment Bank Group on financing.