Key Takeaways
- The EU depends on foreign suppliers for over 80% of digital services, underscoring the need for EU Tech Sovereignty.
- New rules aim to prevent disruption risks in critical tech systems
- The EU produces only 10% of the global semiconductor supply
The European Commission has introduced new proposals aimed at reducing reliance on foreign technology providers across critical sectors such as cloud computing, artificial intelligence and semiconductors. The move is designed to strengthen control over essential digital infrastructure and ensure continuity of key services.
EU targets control over critical technology infrastructure
The proposals focus on limiting risks linked to dependence on external suppliers for digital services and infrastructure. According to the Commission, the European Union currently depends on foreign providers for more than 80% of its digital products, services, infrastructure and intellectual property.
The plan includes measures to ensure that sensitive systems related to defence, law enforcement and border management remain under European oversight. Member states will be required to conduct risk assessments of cloud service providers operating in these areas.
If a provider is identified as high risk, authorities may be required to switch to alternative providers that meet stricter criteria. Companies offering cloud services in these sectors may need to demonstrate compliance with European data protection standards and ensure that data cannot be accessed by external authorities.
The proposals also highlight concerns around supply disruptions. In a recent instance, semiconductor export restrictions led to significant challenges for the European automotive industry, demonstrating the risks of concentrated supply chains and the importance of EU Tech Sovereignty.
Investment push in AI infrastructure and semiconductor capacity
The Commission has outlined plans to strengthen domestic capabilities in artificial intelligence and semiconductor production. The European Union currently produces about 10% of the global semiconductor supply and remains heavily dependent on imports for advanced chips.
As part of the strategy, the EU aims to expand its data centre capacity by up to 3 times within the next 5 to 7 years. To support this, it will introduce a rating system to monitor energy efficiency and create dedicated zones to accelerate approvals for new data centres.
The proposals also include efforts to boost chip manufacturing within Europe. However, building advanced semiconductor facilities requires multi-year investment and significant capital, making it a long-term process.
In addition to advanced chips, there is a growing focus on producing memory and RAM chips, where global shortages continue to impact industries. Expanding production in these segments could provide near-term benefits to supply chains.
The measures are expected to be reviewed by member states and the European Parliament before implementation. They form part of a broader effort to strengthen technological capacity, reduce supply chain risks and improve resilience in critical digital sectors.
The development highlights a global trend where economies are increasing investments in domestic technology infrastructure to reduce external dependence and ensure stability across key industries, under the EU Tech Sovereignty agenda.
