EU to Reduce Reliance on US Big Tech... Pursues 'Technological Sovereignty'

The European Union (EU) is preparing an ambitious strategy to support European companies in the fields of semiconductors, cloud computing, and artificial intelligence (AI), aiming to reduce reliance on U.S. technology and secure technological sovereignty.

Reuters Yonhap News

According to the Financial Times (FT) on May 27 (local time), the draft of the European technological sovereignty strategy states that the EU must regain its position in the global competition for technological and economic supremacy at a "crucial moment to establish technological sovereignty."

This plan includes incentives to accelerate the construction of data centers within Europe and to foster domestic cloud and AI technologies.

FT noted that this strategy demonstrates a shift in the European Commission’s approach to big tech, moving from regulation-focused policies to nurturing innovation. Despite lobbying by U.S. government officials and technology companies, the EU is departing from its previous approach, which concentrated on regulating Silicon Valley companies. This move comes as concerns grow across European countries over their dependence on U.S. technology, which underpins most of the EU economy.

The core of the EU strategy is legislation for the development of cloud and AI technologies. The main objective is to simplify and standardize procedures related to data centers, thereby accelerating the expansion of relevant capabilities. The goal is to triple the EU’s data center capacity within the next five to seven years. Currently, more than 70% of the EU cloud market is dominated by three U.S. companies: Amazon, Microsoft, and Google.

In addition, the EU is working to amend its semiconductor law to strengthen semiconductor manufacturing within Europe and reduce reliance on foreign suppliers. The proposed amendments focus on boosting demand for semiconductors designed and manufactured in the EU by connecting suppliers and consumers through long-term purchase contracts.

The European Commission emphasized that this plan is not intended for "isolation, protectionism, or technological decoupling." Instead, they explained that the goal is to create a "strategic counterbalance" that allows Europe to remain open to the world while safeguarding its interests and values.

This content was produced with the assistance of AI translation services.