Europe wants to produce more of its own AI chips, while carefully choosing who can help.
On November 10, 2026, Henna Virkkunen, the European Commission’s tech chief, told an audience at Web Summit in Lisbon that the EU should work only with highly trusted partners on AI microchips and related technologies. As she put it, the aim is to prevent sensitive technology from leaking out.
The timing was pointed. Virkkunen spoke after a Chinese spy scandal involving Nvidia CEO Jensen Huang, which has renewed scrutiny of technology leaks and vulnerabilities in the chip supply chain.
A more exclusive guest list for Europe’s chip efforts
Virkkunen described the US as the EU’s closest ally on security and technology.
That matters because Europe remains heavily reliant on external suppliers for its most advanced AI chips. Its dependence on US and Asian producers for leading-edge hardware is still significant, and Brussels has been seeking to reduce it without losing access to needed innovations.
The funding and legislation behind the rhetoric
Virkkunen’s remarks are part of a broader drive toward what the EU calls technological sovereignty. At its center is the proposed Chips Act 2.0, part of the Tech Sovereignty Package unveiled in June 2026.
The proposal seeks to strengthen Europe’s capacity to design and manufacture advanced semiconductors. It also aims to speed up approvals for chip projects.
AI applications are projected to make up roughly 70% of semiconductor market growth by 2030, helping explain why Brussels is centering its policy on AI rather than treating it as a secondary issue.
The InvestAI facility is expected to mobilize €20 billion to support the creation of up to five AI Gigafactories in Europe.
Separately, the European Chip Design Platform launched in November 2026, with €500 million in funding mobilized.
Why the trusted-partner approach matters
Virkkunen’s speech puts the EU’s shift into explicit terms. By directly linking chip cooperation with trust, she signaled that access to markets and partnerships may increasingly hinge on geopolitical alignment as well as commercial terms.
The spy scandal linked to Nvidia gave that argument a concrete example. When leak concerns touch the world’s most prominent AI chip company, policymakers elsewhere are more likely to take the risks seriously.
What it means for chipmakers, investors and allies
Virkkunen’s remarks amount to a vote of confidence in the US. Naming it the EU’s closest ally on security and technology puts American firms in a strong position as Europe weighs potential partners for sensitive projects.
But the strategy contains an inherent tension. Europe wants independence while also seeking close cooperation with Washington, and those objectives will not always align.
The provisions for faster approvals in the Chips Act 2.0 proposal will merit close attention. If Brussels can in fact shorten timelines for AI-focused projects, that would address one of the more persistent criticisms of efforts to build industrial capacity in Europe.
Source: cryptobriefing.com. Adapted by NBTC.
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