On June 3, 2026, the European Commission released the EU Tech Sovereignty Package. Taken together, its constituent measures represent an effort to reduce reliance on US and other non-EU technology and digital services and to ensure the development of a domestic, low-carbon lifecycle for cutting-edge digital technology. Currently, the EU is heavily reliant on non-EU digital products, services, infrastructure and intellectual property. Among other things, the package aims to further onshore semiconductor manufacturing in the EU, incentivize the development of a domestic European AI industry, provide incentives, including on the demand side, for chips and other technology, and reduce reliance on foreign countries for critical infrastructure and technologies. The package is composed of two legislative proposals (the Chips Act 2.0 and the Cloud and AI Development Act) and two initiatives (the EU Open Source Strategy and Strategic Roadmap for Digitalisation and AI in Energy).

