> The concerns are similar to US supplied fighters having the kill switch
This is very different though, first they're huge, expensive machines, requiring infrastructure, maintenance and crew, there are huge surface areas to hide things like kill-switches. With CPU packages, not so much, and also fairly established how exactly you can clear the entire CPU, good luck doing that with the complexity-machines known as fighter jets.
> No one knows whether CPUs are compromised
Right, but what we do know, is that any US company (or any EU subsidiary with US owner, like "AWS European Sovereign Cloud") can and will be used to hold our data hostage when needed by the US government, as proven by recent actions.
So, based on what we know and what we don't know, "data sovereignty" remains a priority, and until proven, "hardware sovereignty" remains less important, for now.