GoKawiilEU's Chips Act 2.0 exposes gap between AI ambitions and semiconductor self-reliance
The European Commission is preparing Chips Act 2.0 to fix flaws in its 2023 semiconductor strategy, which aimed for a 20 percent global production share by 2030 but is on track for only about 11.7 percent. The new plan will add demand-side measures like public procurement and industrial coordination to spur chip investment, even as the EU's own AI factories and data centers rely almost entirely on advanced processors designed in the U.S. and manufactured in Asia.
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Europe's bid for tech sovereignty risks reinforcing the very dependencies it hopes to escape, since the AI infrastructure meant to drive domestic chip demand currently has no European alternative for cutting-edge processors. Without addressing this design-and-manufacturing gap, stimulating demand alone could simply funnel more spending toward American and Asian chipmakers rather than building local capacity.
- EU chip production is projected to reach only ~11.7% of the global market, far short of its 20% 2030 goal.
- Chips Act 2.0 will add demand-side tools like procurement and demand accelerators to the original supply-focused law.
- Europe's AI factories currently depend almost entirely on non-European chip designers and manufacturers, undercutting sovereignty goals.
Chip War" by Chris Miller — If the EU's semiconductor scramble has you curious how chips became geopolitical leverage, Chris Miller's Chip War traces the whole story from early fabs to today's rivalry between the US, Asia and Europe. It's the ideal companion for making sense of Chips Act 2.0 and why 20 percent market share is so hard to reach.
See Chip War" by Chris Miller on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: spectrum.ieee.org — Joana Soares, 2026-08-31
Published there as: “The EU’s AI Drive Undermines Its Own Chip Strategy”
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