The new set of measures aim to strengthen the EU’s position on the digital supply chain
24 June 2026
On 3 June 2026, the European Commission published the European technological sovereignty package (“ETSP”), aimed at reinforcing EU digital autonomy in semiconductors, AI and cloud infrastructure, reducing reliance on non-EU suppliers and easing compliance burdens, especially for SMEs.
The ETSP includes three main elements:
- a proposal for a Chips Act 2.0 (“CA2“) covering semiconductors for data centres, cloud services and AI;
- a proposal for a Cloud and AI Development Act (“CADA“) to support EU-based cloud and AI capacity; and
- an open-source strategy and an energy-sector roadmap for digital infrastructure.
The proposals remain subject to negotiation and adoption but would affect operators active in the relevant EU markets, if passed.
1. A sovereign basis for digital infrastructure – Chips Act 2.0
CA2 seeks to reduce dependence on third-country semiconductor suppliers and improve crisis resilience. Through the Chips for Europe Initiative 2.0, it would support EU production, procurement, testing facilities, quantum chips, photonic technologies and access to finance for start-ups, scale-ups, small mid-caps and SMEs.
CA2 would also promote research and innovation, faster permitting, a business-to-business platform and a “semiconductor regions of excellence” label. Some information-sharing duties would apply to private operators, with certain SME exemptions.
Semiconductor undertakings may face new duties. The Commission could request information on supply-chain risks and, during crises, on production capabilities, capacity and disruptions. Companies would also need to notify certain third-country requests and may face priority-rated orders for crisis-relevant products.
Penalties could include up to EUR 300,000 for misleading information, up to EUR 150,000 (or EUR 50,000 for SMEs) for failing to notify certain third-country enquiries and daily penalties of up to 1.5% (or 0.5% for SMEs) of turnover for non-compliance with priority orders.
2. An AI continent grounded in the cloud – Cloud and AI Development Act
CADA targets reliance on non-EU cloud and data-centre operators underpinning AI deployment. It would define EU cloud and AI sovereignty and pursue three objectives:
- supporting innovation through funding and open-source solutions;
- accelerating data-centre deployment through simplified procedures, acceleration zones and strategic projects; and
- creating a sovereignty framework, including public-sector resource federation and measures for NIS 2 essential sectors.
The Commission links CADA to sustainability, arguing that efficiency measures could reduce the data-centre sector’s carbon footprint.
For businesses, CADA is expected to lower market-entry barriers and create opportunities for EU-based cloud and AI infrastructure providers.
3. Open-source strategy and energy roadmap
The open-source strategy complements CA2 and CADA by promoting open-source solutions in EU policymaking, public services and procurement, and by supporting critical-sector technologies, maintenance and skills. This may lower entry barriers and encourage innovation.
The energy roadmap focuses on sustainable integration of data centres and AI into the EU energy system through energy-performance standards, better grid planning, flexible connection agreements, AI-based smart-grid optimisation, EU-wide indicators and interoperability.
The ETSP is a further step towards EU technological autonomy. If adopted, CA2 and CADA could create new compliance duties for semiconductor, cloud and AI operators, while opening opportunities for EU-based providers. Of course, businesses should monitor the legislative process and assess interactions with existing EU digital and cybersecurity rules.
For a more detailed analysis of the European Technological Sovereignty Package, read the full article on the Wolf Theiss website: https://www.
