Britain to tighten investment screening for water and semiconductor sectors

Britain will refine its national security investment screening rules, including tightening oversight of sectors such as water and advanced semiconductors, the government said on Thursday.

Britain ⁠has ⁠laws which determine when private investment must ​be referred for greater scrutiny.

Government says ​reforms are needed to ensure the investment screening regime continues to ​protect against evolving national ⁠security risks.


"Off-the-shelf" ‌systems powered by ​artificial ​intelligence to be removed from ⁠mandatory screening; focus instead on firms developing ​or modifying advanced AI.

Water ​companies will be deemed a sensitive sector and included in mandatory screening for the first time. This will cover major ‌operators and large independent providers, not general supply chain companies.

Separate ​standalone categories ⁠will be created for semiconductors and critical minerals.

Government considering whether to expand ​the list of critical minerals.

Current rules remain in force until new secondary legislation is laid later this year.