Semiconductors

EU signs Pax Silica Declaration on AI supply chains

The European Commission has signed the Pax Silica Declaration on behalf of the EU, joining an international initiative focused on AI security and resilient silicon supply chains.

Pax Silica is a US-led initiative that aims to strengthen cooperation among allies and trusted partners across the AI supply chain, from critical minerals and energy inputs to semiconductor manufacturing, AI infrastructure and logistics.

The Commission said secure access to silicon and related technologies is becoming increasingly important as AI reshapes economies, security and industrial competitiveness.

The declaration commits signatories to closer cooperation on trusted technology ecosystems and more resilient supply chains. It also aims to reduce strategic dependencies and improve coordination on the materials, infrastructure and manufacturing capacity needed for AI development.

The EU’s signature follows the adoption of the European Technological Sovereignty Package, which includes Chips Act 2.0 and measures to strengthen Europe’s capacity in semiconductors, AI, cloud and open-source technologies.

The Commission said participation in Pax Silica could support European businesses, strengthen international partnerships and contribute to Europe’s broader technological sovereignty objectives.

Why does it matter?

AI development depends on far more than models and software. Advanced chips, critical minerals, energy, manufacturing capacity, cloud infrastructure and logistics are becoming strategic layers of the AI economy. By joining Pax Silica, the EU is linking AI competitiveness and security to semiconductor supply-chain resilience and cooperation with trusted partners. The move also shows how digital sovereignty is increasingly pursued through both domestic capacity-building and selective international alignment.

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China’s latest supercomputer strengthens AI ambitions

China has regained the world’s leading position in supercomputing after the LineShine system became the fastest computer in the latest TOP500 ranking, replacing the US’s El Capitan at the top of the list.

The achievement marks China’s return to first place for the first time since 2017 and highlights the growing strategic importance of high-performance computing in the AI era.

Unlike many recent AI-focused supercomputers that rely heavily on graphics processing units (GPUs), LineShine achieves exascale performance using conventional central processing units (CPUs).

Beyond topping benchmark rankings, the system is expected to support scientific research, advanced simulations, climate modelling, pharmaceutical development and the training of increasingly sophisticated AI models.

The announcement also reflects the broader ambition of China to strengthen technological leadership while presenting its innovation ecosystem as a contributor to global technological development.

Europe also remains a major player in high-performance computing. Four European systems rank among the world’s ten fastest supercomputers, while the EU continues to invest in AI factories, next-generation supercomputing infrastructure and collaborative research centres.

The growing investment in supercomputers reflects how computing infrastructure is increasingly being treated as a strategic asset alongside semiconductors, cloud infrastructure and advanced data centres.

As governments increasingly link AI capabilities with economic competitiveness, scientific leadership and national security, access to world-class computing resources is becoming one of the defining factors shaping the global technology balance.

Why does it matter?

The latest TOP500 ranking underline that computing capacity is becoming a defining factor in AI development and scientific competitiveness. As frontier AI models require ever-greater computational resources for training and inference, access to world-class supercomputers is emerging as a strategic advantage alongside semiconductor manufacturing and cloud infrastructure.

China’s return to the top of the rankings also highlights the geopolitical dimension of high-performance computing. At the same time, continued European investment in AI factories and supercomputing infrastructure reflects a broader effort to strengthen technological sovereignty and reduce dependence on external computing resources as countries compete for leadership in AI and advanced research.

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EU launches ADACities for autonomous driving

The European Commission has launched the Autonomous Drive Ambition Cities initiative to support the deployment of autonomous driving technologies in cities across the EU.

The initiative, known as ADACities, was announced by Executive Vice-President Henna Virkkunen during the first international forum of the European Connected and Autonomous Vehicle Alliance in Brussels.

The Commission said ADACities will serve as a mobility flagship under the Apply AI Strategy, allowing selected EU cities to become real-world deployment sites for autonomous mobility innovation.

The initiative will support technologies such as robo-taxis, car-sharing services, autonomous shuttles for multimodal urban mobility and advanced self-driving cars. Participating cities will target fleets of 100 or more autonomous vehicles by 2030.

The Commission said partnerships supported by ADACities should be EU-centric, with European vehicle manufacturers and technology providers at the core, while still allowing international collaboration.

The initiative is also linked to the EU Technological Sovereignty Package. The Commission said autonomous driving deployment will draw on European capabilities in semiconductors, sovereign cloud and data infrastructure, AI Factories and open-source technologies.

ADACities builds on a joint declaration of intent to create a cross-border testbed for automated vehicle deployment. The Commission has opened a call for expressions of interest and will hold an online information session for cities and stakeholders.

Why does it matter?

ADACities shows how the EU is treating autonomous driving as part of AI deployment, urban mobility and industrial competitiveness, not only as a transport technology. By linking autonomous mobility to sovereign cloud, semiconductors, data infrastructure and AI Factories, the Commission is framing city-level deployment as a test of Europe’s ability to turn AI and automotive expertise into scalable public services. The initiative also raises governance questions around safety, liability, infrastructure readiness, data use and public trust.

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Google Cloud urges changes to EU tech sovereignty plans

Google Cloud has urged EU policymakers to revise parts of the European Commission’s Tech Sovereignty Package, arguing that some proposed cloud sovereignty measures could unintentionally isolate the European digital market.

In a policy statement, Giorgia Abeltino, Head of Government Affairs and Public Policy for Google Cloud in EMEA, said Europe requires significant investment in digital infrastructure to strengthen competitiveness, security and technological sovereignty. She said the EU is considering how to expand its digital footprint across chips, cloud adoption, and AI data infrastructure.

Google Cloud said it supports the Commission’s emphasis on openness, partnerships and fair competition, particularly measures aimed at interoperability and reducing vendor lock-in. It welcomed measures on interoperability, efforts to address vendor lock-in, an open source strategy for the public sector, and faster data centre deployment.

However, the company said certain elements of the proposed Cloud and AI Development Act should be changed to avoid unintended market isolation. Google Cloud said trusted global partners should be able to continue supporting Europe’s security and scaling goals under an open framework.

The company said its vision of technological sovereignty is based on verifiable technical controls, customer choice and continued investment in European digital infrastructure. It pointed to its sovereign cloud services, including standard public cloud configurations with European data boundaries, independently operated regional cloud services, and air-gapped solutions for sensitive public-sector operations.

Google Cloud also highlighted partnerships with European companies, including S3NS in France; Thales, Schwarz Group, and T-Systems in Germany; PSN in Italy; Clarence in Luxembourg; and Telefónica in Spain. It said these partnerships support operational resilience and jurisdictional controls under existing national tech sovereignty frameworks.

The company said the S3NS offering in France has been qualified under SecNumCloud 3.2. It also said Clarence and S3NS, together with Mistral, offer services approved by the EU Directorate-General for Digital Services for use by EU institutions with sovereign cloud needs.

Google Cloud also raised concerns about the proposed Union Assurance Levels within the Cloud and AI Development Act. It said harmonising sovereignty criteria across Member States is useful, but argued that the proposed criteria could limit or exclude global providers regardless of the security safeguards they offer.

The company said EU rules should allow technical approaches to sovereign control rather than relying too heavily on geographic criteria. The company cited its Cloud External Key Manager as an example of a technical sovereignty mechanism that allows customers to retain control of encryption keys outside Google’s infrastructure.

Google Cloud also called for the Cloud and AI Development Act to follow a more balanced approach similar to the proposed Industrial Accelerator Act. The company said trusted non-EU partners should be able to operate as EU-origin under clear conditions, backed by trade rules and safeguards.

The company also backed the package’s goal of promoting interoperability and reducing vendor lock-in. It said tech sovereignty should increase user choice and argued for reforms allowing users to move software licences freely, ensuring fair pricing for legacy software, and guaranteeing that software runs equally well on any cloud platform.

Google Cloud said physical compute infrastructure is central to digital tech sovereignty. It welcomed the ambitions of Chips Act 2.0 and the proposed €30 billion investment in European semiconductor research and development, but said Europe also needs regulatory conditions that attract large-scale compute infrastructure investment.

The company said it operates 13 European cloud regions and has recently invested in Germany, Belgium, and Sweden. It welcomed proposed special project status for data infrastructure projects to streamline permitting, grid access, and power purchase agreements.

Google Cloud said fast-track permitting should prioritise highly sustainable infrastructure projects. It also called for national sustainability criteria to align with the upcoming EU-wide rating scheme and said acceleration zones should not artificially restrict where new data centres can be built.

The company said Europe has an opportunity to build a resilient, competitive and open digital future. It said global innovation and European values can be advanced together through open source software, sovereign cloud partnerships and collaboration with European policymakers and regional partners.

Why does it matter?

The debate highlights a central challenge in Europe’s digital policy agenda: how to strengthen technological sovereignty without undermining openness, competition and access to global innovation. As the EU seeks greater control over critical digital infrastructure, cloud services and AI capabilities, policymakers must decide whether sovereignty should be defined primarily by ownership and geography or by technical safeguards and operational control.

The outcome could have significant implications for the future European cloud and AI market. Rules governing sovereign cloud services, data infrastructure and assurance standards will influence investment decisions, public-sector procurement, competition among providers and Europe’s ability to develop advanced AI capabilities. The discussion also reflects broader tensions between strategic autonomy and international technology partnerships that are increasingly shaping digital policy worldwide.

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EU’s 2026 State of the Digital Decade report highlights progress and remaining challenges

The European Commission’s 2026 State of the Digital Decade report shows that the EU continues to make progress towards its digital transformation goals, although significant structural challenges remain on the path to its 2030 targets.

The report highlights progress in digital infrastructure, business digitalisation and public services. Basic 5G coverage now reaches 96.8% of households, while nearly one in five businesses uses AI.

AI adoption accelerated significantly during 2025, increasing by 48% compared with the previous year. More than 60% of Europeans now possess at least basic digital skills.

Despite the progress, the Commission identified several areas requiring urgent attention. However, the EU currently accounts for only 9% of the global semiconductor market, well below its target of reaching 20% by 2030.

Europe also remains heavily dependent on non-EU cybersecurity suppliers and continues to face shortages of ICT specialists, particularly women in digital professions.

The report also revealed strong public support for digital sovereignty and technological self-reliance. According to a new Eurobarometer survey, most citizens support greater investment in local digital infrastructure, reduced dependence on foreign technologies and stronger regulation of AI.

Citizens also identified digital health, green technologies, connectivity and AI as areas likely to deliver the greatest benefits over the next decade.

Why does it matter?

The report provides one of the most comprehensive assessments of Europe’s progress towards its 2030 Digital Decade objectives and offers insight into the EU’s broader competitiveness agenda. Strong growth in AI adoption, connectivity and digital public services suggests that digital transformation is accelerating across the Union.

At the same time, the findings highlight persistent challenges related to technological sovereignty. Europe’s limited share of the global semiconductor market, continued dependence on foreign technology suppliers, and ongoing digital skills shortages could constrain its long-term competitiveness. As the EU increasingly links economic resilience, security and digital policy, addressing these gaps will be critical to achieving its 2030 ambitions and strengthening strategic autonomy in key technologies.

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US backs photonics expansion for AI data centres under CHIPS Act

The Department of Commerce’s CHIPS Program Office has signed a letter of intent to provide up to $50 million in direct funding to Coherent Corp. under the CHIPS and Science Act.

According to the CHIPS Program Office, the proposed funding would support the expansion of Coherent’s facility in Sherman, Texas, which it describes as the first and largest high-volume 150mm indium phosphide semiconductor manufacturing facility in the United States.

The expansion would add wafer fabrication equipment and cleanroom capacity to increase production of indium phosphide-based photonic components. These components are used in high-speed optical interconnects that enable rapid data transfer within advanced AI data centres.

The Department of Commerce said the project would create high-skilled manufacturing jobs and strengthen domestic supply chains for critical photonics technologies that support next-generation computing and AI infrastructure.

Why does it matter?

The announcement highlights the growing importance of photonics technologies in the AI economy. As demand for AI computing continues to rise, data centres require increasingly efficient methods for transferring vast amounts of information between processors, servers and storage systems. Optical interconnect technologies based on indium phosphide semiconductors are becoming a critical part of that infrastructure.

The investment also reflects broader US industrial policy goals under the CHIPS and Science Act. Beyond traditional semiconductor manufacturing, policymakers are increasingly targeting specialised components and supply chains considered strategically important for AI competitiveness, economic security and technological resilience.

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G7 summit to address supply chains, technology and economic growth

Leaders of the G7 nations have gathered in Évian-les-Bains, France, for the 2026 summit, where discussions are expected to focus on economic stability, geopolitical tensions and international cooperation. The meeting comes as governments face growing concerns over global conflicts, economic imbalances and weakened multilateral institutions.

France has placed balanced economic growth and international solidarity at the centre of this year’s agenda. Discussions will examine ways to address macroeconomic imbalances, strengthen partnerships with developing countries and improve the effectiveness of international assistance programmes.

Brazil, Egypt, India, Kenya and South Korea have also been invited to participate in parts of the summit process.

Securing critical mineral supply chains has emerged as a key priority, reflecting growing demand for resources used in renewable energy technologies, semiconductors and digital infrastructure. Leaders are also expected to discuss child safety online, efforts to combat drug trafficking and new initiatives to support cancer research and treatment.

Geopolitical developments will remain a major focus throughout the summit. G7 leaders are expected to discuss continued support for Ukraine, regional security in Europe, and efforts to promote stability in the Middle East, including concerns related to freedom of navigation and broader regional tensions.

Why does it matter? 

The summit highlights how economic security, technology governance and geopolitical stability are becoming increasingly interconnected. Decisions made by the G7 can influence global policy priorities, international cooperation frameworks and supply chain strategies, shaping responses to some of the most significant economic and security challenges facing the world.

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Japan and US deepen AI science collaboration under Genesis Mission

Japan and the United States are expanding cooperation on AI-enabled scientific research, with Japan reported to become the first international partner in the US-led Genesis Mission.

The five-year initiative is expected to mobilise around $1 billion, with funding reportedly split between the two governments. The collaboration will focus on using AI to accelerate research in advanced fields, including quantum technologies, nuclear fusion, biotechnology, and other strategically important areas.

The Genesis Mission is a US Department of Energy initiative designed to use AI, scientific datasets, national laboratories, universities, and industry partners to accelerate discovery science, energy innovation, and national security research.

Japan’s participation builds on earlier cooperation between the US Department of Energy and Japan’s Ministry of Education, Culture, Sports, Science and Technology on AI-enabled scientific discovery, high-performance computing, and quantum technologies.

Joint projects are expected to involve US national laboratories and Japanese research institutions, including RIKEN and the University of Tokyo. The collaboration is also expected to support AI and robotics-powered autonomous laboratories capable of conducting experiments with limited human intervention.

The partnership reflects a broader shift towards AI for Science, where AI systems are used to generate hypotheses, analyse complex data, automate research workflows, and shorten development timelines in frontier research fields.

Why does it matter?

The collaboration shows how AI for Science is becoming part of strategic technology competition and international research diplomacy. By linking AI, high-performance computing, quantum technologies, fusion, and biotechnology, Japan and the United States are trying to accelerate scientific discovery while strengthening technological leadership in fields with economic, security, and industrial importance.

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EU and India deepen digital cooperation through Tech Business Forum

The European Union and India have concluded the first EU-India Tech Business Forum in New Delhi, advancing digital and trade cooperation under the framework of the EU-India Trade and Technology Council (TTC). The forum brought together businesses, policymakers, researchers, think tanks, and civil society to strengthen private-sector collaboration and identify opportunities for joint innovation.

The forum was organised by the EU Delegation to India and Bhutan and India’s Ministry of Electronics and Information Technology, with support from industry organisations including the Federation of European Business in India and the National Association of Software and Service Companies (NASSCOM).

More than 100 European and Indian technology companies participated in discussions covering semiconductors, AI, cybersecurity, data governance and digital public infrastructure.

Participants explored opportunities to strengthen interoperability, advance cooperation on technical standards and improve market access for companies operating in both markets. The forum also aimed to operationalise wider EU-India cooperation, including the recently concluded Free Trade Agreement and the Administrative Arrangement on Advanced Electronic Signatures and Seals signed under the Trade and Technology Council in January 2026.

Speaking at the forum, EU Ambassador to India Hervé Delphin said:

‘In today’s fragmented world, working with trusted partners like India is essential to diversify supply chains and reduce over-reliance on certain sources and geographies.‘

He said Europe brings strengths in advanced technology, innovation, and regulation, while India offers scale, talent, and technological applications.

The forum’s outcomes are expected to shape the next steps in EU-India digital and trade cooperation. The Trade and Technology Council remains the primary framework for EU-India cooperation on strategic technologies, digital governance and connectivity, covering areas such as digital public infrastructure, semiconductors, data governance and emerging technologies.

Why does it matter?

The EU and India are seeking to deepen cooperation on strategic technologies at a time when governments are prioritising supply chain resilience, digital sovereignty and secure technology partnerships. Closer collaboration in areas such as AI, semiconductors and cybersecurity could help both sides reduce dependencies and strengthen innovation ecosystems.

The forum also demonstrates the growing role of technology diplomacy in trade relations, with policymakers and businesses working together to address standards, interoperability and market access challenges that increasingly shape the global digital economy.

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EU proposes Chips Act 2.0 to strengthen semiconductor ecosystem

The European Commission has proposed Chips Act 2.0, a new framework intended to strengthen Europe’s semiconductor ecosystem and build on the original European Chips Act.

The proposal aims to boost the EU’s competitiveness, technological sovereignty, and resilience while improving crisis preparedness in semiconductor supply chains. It forms part of the Commission’s wider European Technological Sovereignty Package, alongside the Cloud and AI Development Act, an Open Source Strategy, and a roadmap for digitalisation and AI in the energy sector.

The Commission says the EU remains structurally dependent on third countries for semiconductor design and manufacturing, including advanced and leading-edge chips needed for AI. It also points to gaps in crisis preparedness, noting that existing mechanisms rely heavily on voluntary information sharing outside crises and do not provide sufficient, timely supply-chain intelligence.

Chips Act 2.0 would support both mainstream and advanced semiconductors, including AI chips. Measures are expected to include stronger research and innovation support, faster permitting, supply-chain information tools, Semiconductor Regions of Excellence, skills investment, strategic projects, and innovation procurement.

The proposal also places greater emphasis on demand-side measures, including support for public procurement and industrial uptake of European semiconductor technologies. The Commission argues that stronger local demand can reinforce local supply, shorten supply chains, and better align European production capacity with the needs of strategic sectors.

The initiative complements the EU’s broader technological sovereignty agenda. The Commission says Chips Act 2.0 should help reduce strategic dependencies, improve security of supply, support industrial scale-up, and strengthen Europe’s role in semiconductor technologies needed for AI, cloud, defence, automotive, energy, and other critical sectors.

Why does it matter?

The Chips Act 2.0 shows how the EU is shifting from an emergency response to the global chip shortage to a broader semiconductor industrial strategy. The proposal links chip policy directly to AI competitiveness, cloud infrastructure, defence, energy, automotive supply chains, and technological sovereignty. Its emphasis on demand-side measures also matters: Europe is not only trying to attract semiconductor production, but also to create stronger domestic markets for European chip technologies.

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