Europe Wants to Become Indispensable

Why Washington should pay attention to Europe’s new technology strategy

For years, discussions about global technology leadership followed a familiar script. The United States was seen as the innovator. China was seen as the manufacturer. Europe was seen as the regulator. That narrative is becoming increasingly outdated.

With the launch of the European Union’s new Tech Sovereignty Package, Brussels is signaling a broader ambition. The objective is no longer simply to regulate technology markets. It is to strengthen Europe’s position within the technologies and infrastructures that underpin the digital economy.

This shift matters not only for Europe. It also matters for the United States.

Nvidia’s Optical Moat

Why billions are flowing into photonics as the battle for AI infrastructure moves beyond the GPU

As artificial intelligence scales toward ever larger computing clusters, a new reality is emerging beneath the headlines. The future of AI may no longer be constrained by processors alone, but by the physical infrastructure connecting them. Nvidia’s recent investments in photonics suggest the next battle may be fought far beyond the chip itself.

When Nvidia CEO Jensen Huang recently warned that global silicon photonics capacity is insufficient for the scale of AI infrastructure now being planned, the remark attracted considerable attention throughout the semiconductor industry.

“Silicon photonics capacity needs are substantially higher than the world has today.”

Jensen Huang
CEO, Nvidia

Most observers interpreted the statement as evidence of an approaching supply shortage. But according to photonics expert Martijn Heck, the problem may lie elsewhere.

“I don’t believe this. I think Jensen Huang is confused. Maybe he is referring to the assembly and packaging and not the actual chips?”

Prof. Martijn Heck
Professor of Integrated Photonics
Eindhoven University of Technology (TU/e)
Source: LinkedIn discussion

That distinction may ultimately prove more important than Huang’s original warning. Because if Heck is correct, the emerging bottleneck is not silicon photonics itself. It is everything that comes after the chip.

Europe’s Semiconductor Strategy Is No Longer About Scale Alone

Chips Act 2.0 signals a broader shift toward technological indispensability

As Europe shapes the next phase of its semiconductor strategy, a deeper strategic shift is becoming increasingly visible beneath the policy debates and political negotiations. For years, Europe approached semiconductor sovereignty largely as a race to increase domestic manufacturing capacity and reduce dependence on Asia and the United States.

The new European strategy increasingly suggests something different: Europe no longer appears focused on reproducing the entire semiconductor chain domestically.

Instead, Brussels is gradually moving toward a model built around technological indispensability.

That distinction matters. Because semiconductors are no longer simply products moving through global supply chains. They have become foundational infrastructure for artificial intelligence, telecommunications, defense systems, automotive manufacturing and industrial automation.

And infrastructure rarely operates through isolation alone. It operates through specialization, coordination and control over critical chokepoints.