On June 3, 2026, the European Commission proposed the European Technological Sovereignty Package, marking a significant shift in the European Union's approach to reducing its dependence on non-EU technology providers.
The package comprises four interconnected initiatives. First, the proposed Chips Act 2.0 would strengthen Europe's semiconductor ecosystem by supporting advanced chip design and manufacturing, accelerating permitting to a maximum of 12 months, introducing "Grand Challenges" for AI chips, and targeting €120 billion (around $138 billion) in investment by 2035. It would also introduce "Demand Accelerators" to connect EU chip producers with industrial buyers.
Second, the proposed Cloud and AI Development Act, or CADA, would introduce a single EU-wide sovereignty framework with four assurance levels for cloud services, requires Member States to conduct sovereignty risk assessments, and aims to triple EU data center capacity within five to seven years. Under the proposal,