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European Lawmakers Urge Quick Action on Chips Act 2.0 to Boost AI and Semiconductor Investment

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European lawmakers have called on the European Commission to expedite the development of a new support program for the region’s semiconductor industry, particularly focusing on investment in AI chips and addressing technological gaps. A letter, authored by representatives from three major factions in the European Parliament and signed by 54 lawmakers, emphasized the urgency of bolstering Europe’s semiconductor sector.

The letter highlighted recent geopolitical developments that have underscored the need for Europe to secure continued access to advanced technologies. Lawmakers expressed concern that the progress under the original 2023 Chips Act has been too slow, urging the European Commission to act more swiftly.

The lawmakers’ plea follows a similar call from leading European chip industry firms, which have also voiced concerns over the pace of progress. While the European Commission has signaled plans to launch five new investment packages this year to support European industries, including AI, the letter criticized the absence of semiconductor-focused measures in these packages. Semiconductors, the lawmakers stressed, are central to the EU’s industrial ambitions, and the current lack of targeted support for the sector could hinder Europe’s technological and economic future.

The initial EU Chips Act prompted a wave of investment but fell short of attracting advanced chipmakers, with Intel notably halting plans for a large new factory in Germany. The lawmakers urged the Commission to address these gaps and act quickly, especially given the current geopolitical realities surrounding competition between the United States and China.

The letter also emphasized the need for Europe to protect its key players from the implications of extraterritorial laws and the escalating global competition in the semiconductor industry.

Italy’s Talks with Musk’s Starlink Stalled Over Geopolitical Tensions

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Negotiations between the Italian government and Elon Musk’s satellite internet company, Starlink, have stalled, according to Italy’s Defense Minister Guido Crosetto. The potential contract, which could have seen Starlink provide secure communications for Italy’s government and defense officials, has been delayed due to shifting discussions from technical issues to political concerns surrounding Musk’s statements and associations.

Prime Minister Giorgia Meloni’s government had been exploring a deal with Starlink to guarantee encrypted communications for diplomats and defense officials in high-risk areas. The proposed deal, valued at 1.5 billion euros ($1.62 billion) over five years, would have seen Starlink’s satellite services expand in Italy, where the company has been operating since 2021 with around 7,000 low-orbit satellites in use globally. However, tensions have arisen due to opposition from Italian politicians questioning the appropriateness of granting a national security contract to a foreign businessman with strong ties to U.S. President Donald Trump.

Crosetto emphasized that discussions should return to a technical level once the political tensions subside, stating that the ultimate goal is to determine what is safest and most useful for Italy’s national security. He referred to Musk as a “visionary genius” but acknowledged the complex political context surrounding the deal.

The situation also reflects the broader geopolitical balancing act that Meloni’s government faces as it navigates Italy’s alliance with the United States. Meloni’s coalition partner, the far-right League, has continued to support both Musk and Trump, putting additional pressure on the government.

Meanwhile, Andrea Stroppa, a representative for Musk in Italy, suggested that while Italy and its European partners should consider developing their own satellite infrastructure, Starlink could offer the most viable solution in the short term to meet urgent operational needs.

EU Proposes Ban on Video Game Sales to Russia in New Sanctions Package

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Key Developments:

  • The European Commission has proposed new restrictions on video game sales to Russia as part of its 16th sanctions package against Moscow.
  • The ban would affect video game consoles and accessories, including:
    • Microsoft Xbox
    • Nintendo Switch
    • Sony PlayStation
    • Game controllers, flight simulator controllers, joysticks, and other input devices

Context & Implications:

  • The move is part of ongoing EU efforts to tighten economic pressure on Russia following its invasion of Ukraine.
  • The proposal aims to curtail access to Western gaming technology and entertainment systems in Russia.
  • If approved, major gaming companies could be forced to halt sales of consoles and accessories to the Russian market.

The proposal is still under review by EU member states, with further discussions expected before formal adoption.