- EU unveils Chips Act 2.0, CADA and Open Source Software Strategy
- The aim is to reduce dependence on foreign hyperscalers and support the EU’s cloud sector
- CISPE worries that some loopholes remain that could allow US hyperscalers to continue operating
The European Commission has launched a major technical sovereignty package designed to reduce the EU’s reliance on foreign technology suppliers, specifically targeting both US and Chinese companies.
Three separate initiatives are part of the package, including the EU Chips Act 2.0, the Cloud and AI Development Act and the EU Open Source Software Strategy.
Although expected, the changes come in response to criticism over Europe’s reliance on foreign semiconductor makers, cloud infrastructure providers, cloud computing and other software propositions.
Europe lays out plans to reduce dependence on foreign technology suppliers
First of all, the EU Chips Act 2.0 follows the previous Chips Act, which mostly focused on semiconductors and manufacturing. Policymakers ultimately concluded that it was ineffective at increasing chip production capacity, and that the market is still dominated by American suppliers.
The new arrangement includes plans to expand semiconductor R&D facilities, improve access to private investment and support pilot production lines, but more importantly, it moves a little closer to the Chinese state-backed way of working.
Separately, the Cloud and AI Development Act (CADA) addresses concerns that Europe remains dependent 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’s open source software strategy, under which EU institutions could increase their use of open source software (OSS) with new incentives and promotional measures.
Overall, the measures aim to build more technological capacity in Europe, to attract more investment and to create more jobs in the sector.
However, the measures have still not satisfied some areas of the market. CISPE, the body representing nearly 50 European cloud companies, argues that some of the changes need more definition and stricter enforcement. The body is concerned that some classifications are so low that non-European providers may be eligible to qualify. “The law fails to ask buyers to look at European alternatives,” the organization said, calling on the EU to “close the loopholes that could be used to slip past the rules.”
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews and opinions in your feeds.
