The European Union's push for technological sovereignty faces an uncomfortable contradiction as Brussels rolls out AI factories, gigafactories and new data centers, creating a surge in demand for advanced semiconductors, yet Europe produces fewer than 10% of the world's chips and remains heavily dependent on US designers and Asian manufacturers for the most advanced processors. That tension sits at the heart of Chips Act 2.0, the European Commission's planned overhaul of its flagship semiconductor strategy. The original Chips Act, adopted in 2023, sought to raise Europe's share of global semiconductor production to 20% by 2030, but the European Court of Auditors has warned that target is unlikely to be met, while the Commission's own projections put Europe's market share at about 11.7%. Chips Act 2.0 is expected to introduce demand-side measures, including public procurement tools, demand accelerators and closer coordination between semiconductor producers and industrial users. However, the AI infrastructure Brussels hopes will anchor a European semiconductor ecosystem will initially rely almost entirely on advanced processors designed by American companies and manufactured in Asia. The Center for European Policy Studies (CEPS) estimates each planned AI factory site requires up to 25,000 advanced chips, and a gigafactory requires at least 100,000, with almost all expected from Nvidia, creating what CEPS describes as an "Nvidia dependency trap."