European Union launches tech sovereignty initiative to boost chips, cloud, and AI at home

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. weaponize / ˈwɛp əˌnaɪz / (v.) – to make something a tool to attack or damage someone or something
    Example:

    The government weaponized its oil supply by stopping sales to any nation that disagreed with it.


  2. spark / spɑrk / (v.) – to cause something to start happening immediately
    Example:

    The airline suddenly canceled the flight without warning, sparking anger among the passengers waiting at the gate.


  3. geopolitics / ˌdʒi oʊˈpɒl ɪ tɪks / (n.) – political activities, competition, and relationships between different countries that are affected by their location, size, or resources
    Example:

    When international geopolitics becomes difficult, countries often stop buying and selling products from each other.


  4. ecosystem / ˈi koʊˌsɪs təm / (n.) – a complex network of different businesses, people, and activities that work together, rely on each other, and help an industry grow
    Example:

    A healthy business ecosystem needs both large companies and small companies to share creative ideas and tools.


  5. vulnerability / ˌvʌl nər əˈbɪl ɪ ti / (n.) – a weak point that makes a person, business, or country easy to get hurt, attacked, or controlled
    Example:

    The storm showed the town’s vulnerability to flooding.


Article

Read the text below.

European Union leaders, worried about the continent relying too heavily on American companies for AI and cloud computing services and Asia for microchips, are pushing back.


The 27-nation bloc unveiled a “tech sovereignty” package with measures to promote homegrown European alternatives to Big Tech services and hardware.


The efforts by Brussels have gained urgency as leaders worry about dependence on technologies from foreign providers, which they say could be “weaponized” against Europeans. Those fears crystallized after the International Criminal Court’s top prosecutor was sanctioned by the Trump administration, which led to Microsoft canceling his email account, sparking fears of a “kill switch” hidden in U.S. tech services.


“Europe wants to be in the position to make its own choices, avoiding risky dependencies on single dominant suppliers, one company or one third country,” European Commission Executive Vice-President Henna Virkkunen, who oversees tech sovereignty, told reporters in Brussels.


“Because we live in a world where geopolitics and technology go hand in hand. Those who champion technological innovation will shape the future, and we must ensure that Europe plays a leading role in this.”


A cornerstone of the package is a sequel to the EU’s 2023 Chips Act to further boost local production of semiconductors by cutting red tape for chip fabs and fostering a European chipmaking ecosystem.


Europe’s vulnerability to the global chip supply chain centered in East Asia was highlighted last year in a power struggle at the Chinese-owned, Netherlands-based chipmaker Nexperia.


Another key part of the package is supporting local cloud and AI development, with plans to triple Europe’s data center capacity over the next five to seven years. The EU is pushing to expand data centers to keep up with the AI boom, which is driving demand for cloud computing services.


The proposals from the EU’s executive arm still need to be debated by the EU’s two other main institutions, the European Parliament and the Council of the European Union.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Microchips and data centers are part of a global supply chain in which different countries count on each other. How do you think relations between countries would be affected if every continent decided to build its own tech ecosystem rather than buying and selling globally? Discuss.
  • In your opinion, does avoiding dependencies on foreign providers make a region safer and more secure, or does it just create unnecessary tension between global partners? Why do you say so? Discuss.

Discussion B

  • The European Union is promoting homegrown alternatives to Big Tech services so they do not rely too heavily on American companies. When using a digital service or an app, which do you prefer: famous global tech brands or local companies from your own country or region? Why do you say so? In your opinion, what are the good and bad points of each choice? Discuss.
  • What tech products, digital services, or apps do people in your country use the most (ex. global companies, local companies)? If your government gave much more support to local tech companies that offer the same products and services as American Big Tech, would you start using them? Why or why not? Discuss.