Story perspectives

EU doubts Chips Act boost; targets $139 B by 2035

6/8/2026

Summary

EU Downplays Impact

EU officials state that Chips Act I will not double Europe’s semiconductor market share by 2030.
Chips Act II targets $139 billion in public-private investment to be deployed by 2035.
TSMC currently spends over $50 billion annually and expects to exceed $500 billion in capital investment by 2035.
EC tech-sovereignty vice-president Henna Virkkunen notes that 80 % of Europe’s tech is imported and results will not appear until at least 2030.

Summary

US Lobbyists Challenge

US tech lobbyists say the EU’s cloud-sovereignty rules discriminate against non-EU providers.
Commission senior tech policy executive Henna Virkkunen said the US Cloud Act hinders American firms from meeting Level 3 assurance.
All four cloud-assurance levels rely on a European cybersecurity certification scheme that remains unlaunched because member states disagree.
The Open Source Strategy reports Europe has over 3 million contributors and about €190 million funded through Horizon programmes for open-source projects.

History

Historical Context

In 2004 a U.S. court approved a settlement that followed earlier EU antitrust actions that had already imposed more than €2 billion in fines on Microsoft for bundling Windows with other software. The episode set a precedent that now underpins EU Vice-President Henna Virkkunen’s support for the €139 billion Chips Act II and cloud-sovereignty rules, which the United States’ Cloud Act contests.

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EU Downplays Impact

EU officials state that Chips Act I will not double Europe’s semiconductor market share by 2030.
Chips Act II targets $139 billion in public-private investment to be deployed by 2035.
TSMC currently spends over $50 billion annually and expects to exceed $500 billion in capital investment by 2035.
EC tech-sovereignty vice-president Henna Virkkunen notes that 80 % of Europe’s tech is imported and results will not appear until at least 2030.

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