EU proposes laws to boost domestic tech and chip output

The European Commission has introduced the Cloud and AI Development Act and Chips Act 2.0 to enhance technological sovereignty. These proposals aim to double the EU global semiconductor market share to 20% by 2030 while setting strict data control requirements for foreign cloud providers.

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The European Commission proposed laws on Wednesday to double the EU's semiconductor market share to 20% by 2030 through domestic cloud and AI investment. These acts aim to reduce dependence on United States technology providers and close growth gaps with global rivals. Investors face a fractured market as the EU mandates local hardware and software for critical infrastructure and public contracts.

### Securing Critical Infrastructure EU tech chief Henna Virkkunen warned of foreign "kill switches" that could disrupt services at the behest of external governments. The proposal requires cloud providers in banking, energy, and healthcare to meet strict sovereignty requirements to protect local data. Commission President Ursula von der Leyen stated the EU cannot depend on others for technologies that secure hospitals and energy grids.

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