The E.U.’s AI Drive Undermines Its ​Own Chip Strategy

This story was originally published by Tech Policy Press . The European Union’s push for technological sovereignty faces an uncomfortable contradiction. As the E.U. rolls out AI factories, gigafactories, and new data centers, it is creating a surge in demand for the advanced semiconductors that underpin artificial intelligence. Yet Europe produces fewer than 10 percent of the world’s chips and remains heavily dependent on U.S. designers and Asian manufacturers for the most advanced processors. That tension sits at the heart of Chips Act 2.0 , the European Commission’s planned overhaul of its flagship semiconductor strategy. The original Chips Act, adopted in 2023, sought to raise Europe’s share of global semiconductor production to 20 percent by 2030. But the European Court of Auditors has