The European Commission unveiled its long-awaited tech sovereignty package, which aims to reduce the European Union's dependence on foreign suppliers across the semiconductor, artificial intelligence and cloud sectors, the commission said in a June 3 press release. The package includes a revamped Chips Act 2.0, the proposed Cloud and AI Development Act and a Strategic Roadmap for Digitalisation and AI in Energy.

The package responds to longstanding concerns about Europe's overreliance on foreign technology, with Brussels estimating that roughly 80% of European tech inputs originate abroad, and the original 2023 Chips Act has fallen well short of its initial ambitions. Growing transatlantic tensions since U.S. President Donald Trump took office for a second term in 2025 have also heightened fears that Washington could leverage access to essential cloud and software services for political ends, while Brussels has repeatedly flagged Chinese network equipment and data centers as national security risks. The package had been delayed multiple times since March amid pushback from member states and reservations raised by Brussels' own regulatory scrutiny board.