Investing.com -- The European Commission introduced new legislation on Wednesday aimed at strengthening domestic cloud, artificial intelligence and semiconductor sectors to reduce dependence on U.S. technology companies.

The Cloud and AI Development Act and Chips Act 2.0 represent the European Union's effort to achieve technological sovereignty and narrow the competitive gap with the United States and China. The Commission seeks to increase the EU's global semiconductor market share to 20% by 2030, double its current level.

Commission President Ursula von der Leyen said the EU cannot afford to rely on other nations for technologies that support hospitals, energy grids and secure services.

EU tech chief Henna Virkkunen highlighted concerns about potential kill switches that could disable or disrupt services. She told reporters that the EU wants to ensure control over services and data in critical fields.

The legislation establishes sovereignty requirements for cloud providers operating in sensitive sectors including banking, energy and healthcare. These requirements stem partly from concerns about U.S. laws such as the Cloud Act, which mandates U.S.-based providers to grant authorities data access regardless of storage location.

Critical public contracts will require vendors to ensure software and hardware are manufactured in the EU, preventing non-European countries from controlling data and services. Virkkunen said this applies to critical fields such as defense where European control of technology and data is essential.

Amazon, Microsoft and Google hold over 60% of the global cloud provider market share.

The legislation includes expedited approval processes for data centers, which will receive preferential grid access and reduced network charges for using European-made chips and improving energy efficiency.

The updated Chips Act aims to increase European chip production by encouraging agreements between manufacturers and buyers to guarantee future product purchases.

Both proposals require negotiation with EU member states and the European Parliament before becoming law.