The Europragmatist
The Europragmatist Podcast
Good Morning Europe - Revenge of the Chips: Europe’s Bid for Digital Power
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Good Morning Europe - Revenge of the Chips: Europe’s Bid for Digital Power

31/03/2025 - Episode 20
2

Semiconductors. Digital IDs. Cloud sovereignty.
The EU isn’t just playing catch-up—it’s betting big on building a secure, competitive digital future.

In this episode, we break down three massive initiatives shaping the EU’s strategic direction:

  1. The European Chips Act

  2. The EU Digital Identity Wallet

  3. The Gaia-X data infrastructure framework

Together, they form the core of the EU's push for digital sovereignty—its ability to define its technological future without depending on foreign powers.

The Chips Act: From Outsourced to Onshore 🔧

Europe currently makes just 9% of the world’s semiconductors. The goal? Hit 20% by 2030.

But this isn’t just about market share. Chips are now strategic assets—powering everything from AI and energy grids to military systems.

Key pillars of the Chips Act:

  • Integrated production facilities (design + manufacturing under one roof, focused on Europe)

  • Open EU foundries (contract manufacturing open to sectors like health, transport, defense)

  • Massive R&D investment to bridge the lab-to-fab gap

  • Startup support via the EU Chips Fund

  • Skills training to fill a growing talent gap

  • Defense prioritization in times of chip shortages

This is Europe building resilience into its industrial base—and finally treating tech as a matter of national and collective security.

Digital Identity: Power to the People 🪪

Imagine one secure app to access any service, public or private, across the EU. That’s the vision of the EU Digital Identity Wallet.

It's part of an update to the EU’s electronic ID regulation (eIDAS 2.0), designed to:

  • Let citizens store and use IDs, certificates, licenses, and more

  • Ensure accessibility and security for all—including people with disabilities

  • Build public trust with strong safeguards for data breaches and fraud

This isn’t just a tech update—it’s a civil rights framework for the digital age, rooted in the EU’s Declaration of Digital Rights and Principles.

Gaia-X: Europe’s Alternative to Big Tech Clouds ☁️

The most conceptual—and perhaps most ambitious—initiative is Gaia-X.

Forget centralization. Gaia-X aims to build a federated data infrastructure where services, platforms, and users interoperate based on:

  • Shared standards

  • Open-source code

  • Labels of trust and compliance with EU values

It’s not one cloud, but a network of clouds—supporting startups, governments, research institutions, and industrial giants alike.

If it works, Gaia-X could be a model for data governance based on openness, transparency, and sovereignty.

What Ties It All Together? Digital Sovereignty

Each of these initiatives addresses a different layer of Europe's digital future:

  • Chips Act: Hardware independence

  • Digital ID: Secure digital access

  • Gaia-X: Trusted data infrastructure

Together, they reflect a clear strategic shift:
Europe doesn’t just want to compete in the global tech race—it wants to lead, on its own terms.

Big Questions Ahead

  • Can the EU really scale production to compete with the US and Asia?

  • Will citizens embrace the new digital ID system?

  • Can Gaia-X avoid fragmentation and win over private players?

These are long-term bets. But what’s clear is that Europe is no longer content to be a digital consumer. It’s fighting to become a digital creator—and that shift may redefine its global role.

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