The Biden administration's recent decision to expand export controls on advanced computer chips used in artificial intelligence (AI) has sparked a division within the European Union.

As the US seeks to tighten its grip on critical technology exports, EU member states are faced with the dilemma of whether to align closely with Washington’s tech policy, or push back against measures that could hamper their own technological ambitions.

The focus of the new US restrictions is on semiconductors, particularly those used to power AI applications.

Export controls have been designed to prevent China from acquiring high-tech American chips that can be used in advanced military systems and surveillance technologies.

However, these restrictions have far-reaching implications, affecting a global supply chain that involves numerous European players.

While some major European economies like Germany and France appear to support the US's hardline stance against China, citing national security concerns, other countries, particularly in Southern and Eastern Europe, are concerned about economic repercussions and the potential impact on their technology sectors.

The European technology landscape includes some of the world's largest semiconductor and tech companies, which are heavily involved in both the production and end-use of these chips.

European countries are also key export markets for US tech companies.

Therefore, any disruption in the supply of advanced chips could cause significant setbacks to European technological competitiveness and innovation.

Additionally, the EU's strategic agenda includes increasing autonomy in digital and technological fields.

The current discord over US export policies has amplified calls within the EU for boosting indigenous semiconductor manufacturing capacity as well as increasing investment in AI and other emerging technologies.

The rift also highlights broader challenges within the EU to form a cohesive external trade and technology policy at a time when tech dominance is being used as a geopolitical tool.

As the global tech landscape becomes increasingly politicized, the issue of AI chip exports may well test the EU's unity in its external policy and its position between the US and China.

As the debate unfolds, European Commission officials are reportedly working to mediate different national positions, while striving to align the Union’s strategic interests with those of its transatlantic ally.

The EU’s response will likely have significant implications not only for its own technology sector but also for the broader EU-US trade and diplomatic relationship.