- EU reveals Chip Law 2.0, CADA and open source software strategy
- The aim is to reduce dependence on foreign hyperscalers and support the EU cloud sector.
- CISPE is concerned that some loopholes still exist that could allow US hyperscalers to continue operating
The European Commission has launched a major technology sovereignty package designed to reduce the Union’s dependence on foreign technology suppliers, specifically targeting US and Chinese companies.
Three separate initiatives are part of the package, including the EU Chip Law 2.0, the Cloud and AI Development Law, and the EU Open Source Software Strategy.
Although anticipated, the changes come in response to criticism about Europe’s dependence on foreign semiconductor manufacturers, cloud infrastructure providers, computing clouds and other software proposals.
Europe sets plans to reduce dependence on foreign technology suppliers
First of all, the EU Chip Law 2.0 is a continuation of the previous Chip Law, which focused mainly on semiconductors and manufacturing. Policymakers ultimately concluded that it was ineffective in boosting chip production capacity and that the market is still dominated by American suppliers.
The new plan includes plans to expand semiconductor research and development facilities, improve access to private investment and support pilot production lines, but most importantly it moves a step closer to the Chinese state-backed way of working.
Separately, the Cloud and AI Development Act (CADA) addresses concerns that Europe is still reliant on non-European hyperscalers. The Commission wants to help expand computing resources, improve the availability and deployment of AI infrastructure and encourage investment in European cloud providers.
The third major announcement covers the EU open source software strategy, according to which EU institutions could increase their use of open source software (OSS) with new stimulus and promotion measures.
Together, the measures aim to develop more technological capacity within Europe, attract more investment and create more jobs within the sector.
However, the measures have yet to please some areas of the market. CISPE, the body representing almost 50 European cloud companies, argues that some of the changes need further definition and stricter enforcement. The body is concerned that some ratings are so low that non-European suppliers may be eligible to qualify. “The law does not even ask buyers to look for European alternatives,” the organization said, urging the EU to “close loopholes that could be used to circumvent the rules.”
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