EU Urges Review of Semiconductor and AI Investments

Brussels: A few days following Washington’s crackdown on artificial intelligence (AI) chip exports, the European Commission has issued a recommendation urging European Union member states to reassess outbound investments into non-EU countries.

According to Ansa News Agency, this recommendation targets three strategic technological areas deemed high-risk: semiconductors, artificial intelligence, and quantum technologies.

Member states have been asked to evaluate potential economic security risks that could arise from such transactions. The review aims to determine if additional actions are necessary at either the European or national level to address the identified risks. The Commission’s ultimate goal is to prevent external investments from negatively impacting European economic security, ensuring that key technologies and expertise remain protected.

European Commissioner for Trade and Economic Security Maro€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬¦¡ €š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬¦ efcovic emphasized that the EU continues to be a leader in offering and attracting global investments. He noted that the current geopolitical climate necessitates a deeper understanding of the potential risks associated with these investments.

The review process is set to last 15 months, covering both ongoing and past transactions dating back to January 2021. This recommendation builds on a White Paper and a public consultation, which highlighted the need to evaluate potential risks to the EU’s security related to outbound investments. It is part of the EU’s broader Economic Security Strategy, complementing existing efforts on inbound foreign direct investment screening.