EU drafts emergency powers to seize control of Europes chip supply
Brussels moves to seize control of Europe’s chip supply as tech sovereignty push intensifies
The European Union is drafting emergency powers to override private contracts and redirect semiconductor supplies during crises, marking its most aggressive step yet to secure critical technology. Under a proposed revision of the EU Chips Act, Brussels would gain authority to compel chipmakers to prioritize European demand—particularly for AI and cloud infrastructure—over existing commercial agreements, according to a draft law seen by the *Financial Times* . The move reflects a strategic shift from boosting domestic production to actively shaping demand, with the Commission framing it as essential to Europe’s "tech sovereignty" amid global supply chain vulnerabilities.
The revised Chips Act, set to be unveiled next month, will also introduce demand-aggregation tools to consolidate European buyers’ purchasing power, officials said. This aligns with warnings from the International Energy Agency (IEA), whose chief Fatih Birol urged the EU to accelerate electrification to safeguard industrial competitiveness, calling it "the answer to save Europe’s industry" in an interview with *Euronews* . The IEA’s stance underscores the link between energy security and semiconductor supply, as chip production is energy-intensive.
Industry resistance is mounting on another front. Several EU member states, including heavyweights in steel, cement, and chemicals, are pushing back against the Commission’s plan to slash free emissions allowances under the EU Emissions Trading System (ETS). Countries argue the proposed cuts—aimed at accelerating decarbonization—ignore technological constraints and risk driving production abroad, *Euronews* reported . The dispute highlights the tension between climate goals and industrial competitiveness, a fault line that has deepened as energy costs remain volatile.
Meanwhile, Brussels is tightening trade defenses against China, with Industry Commissioner Stéphane Séjourné announcing plans to expand import quotas and tariffs on Chinese goods, particularly in chemicals, metals, and green technology. The measures, set for discussion at a Commission meeting on Friday, aim to "rebalance" trade rather than sever ties, Séjourné told the *Financial Times* . However, the initiative faces internal divisions: Spain has withdrawn support for a French-led push to toughen trade barriers, signaling fractures in the EU’s united front .
The Commission’s scrutiny of Chinese investments is also intensifying. On Thursday, it launched an in-depth probe into JD.com’s €2.6 billion takeover of German retailer Ceconomy, owner of MediaMarkt, over concerns the deal could distort competition and involve Chinese state subsidies. The investigation, announced by the Commission, follows similar moves to block foreign acquisitions in strategic sectors, including the Netherlands’ recent veto of a U.S. firm’s bid for Dutch cloud provider Solvinity sources .
Against this backdrop, Europe’s business community is undergoing a leadership transition. BusinessEurope, the continent’s largest industry lobby, elected Maciej Witucki as its new president on Friday, succeeding Fredrik Persson. Witucki, former head of Poland’s Lewiatan Confederation, will take office on July 1, positioning him to shape the EU’s response to these challenges . His tenure begins as the bloc grapples with balancing industrial policy, climate targets, and geopolitical risks—all while navigating internal dissent and external pressures.
Articles
EU wants crisis powers to seize control of chip supplies Draft law would enable Brussels to force chipmakers to override existing contracts
financial times · about 3 hours ago
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euronews · about 3 hours ago
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euronews · about 3 hours ago
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brussels morning · about 4 hours ago
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TechSpot: The Netherlands just blocked a US company from buying the app Dutch citizens use for everything. US enterprise services provider Kyndryl tried to acquire Dutch cloud specialist Solvinity, but The Hague has officially stopped the acquisition. Citing a potential security risk to the countrys public interest, State Secretary for Digital Economy Willemijn Aerdts recently confirmed the […]
mastodon bot · about 4 hours ago
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