Chips Act 2.0 - Can €120 Billion Buy Europe a Seat at the AI Chip Table?

Europe’s Chips Act 2.0 aims to boost AI independence with €120B in funding, a flagship AI foundry, and new safeguards against foreign providers.

The European Commission unveiled Chips Act 2.0 on June 3, 2026, shifting from the original act's ineffective supply-side subsidies to a demand aggregation strategy, with a €120 billion investment goal by 2035 and a flagship €30 billion AI foundry at the 3nm node. The package includes new emergency powers and a Cloud and AI Development Act aimed at preventing foreign providers from holding a "kill switch" over European AI and data. Can it make a difference in a world dominated by AI superpowers, the US and China?