UK Tightens Security on Water and Semiconductors

The UK is refining its national security investment screening rules to enhance oversight, especially in sectors like water and advanced semiconductors. AI technology will see changes in screening requirements, and water companies will now be considered sensitive sectors. New legislation is expected later this year.

The UK government is set to revise its national security investment screening rules, escalating oversight in sectors such as water and advanced semiconductors. Authorities announced these reforms on Thursday, aimed at bolstering protection against shifting national security threats.

A significant shift involves moving artificial intelligence 'off-the-shelf' systems out of mandatory scrutiny, placing emphasis instead on firms that are developing or modifying advanced AI. Water companies will now be classified as sensitive sectors subject to mandatory screening, targeting major operators and large independent providers, while sparing general supply chain companies.

Additionally, the administration is contemplating adding more critical minerals to the scrutiny list. Current rules will remain effective until new secondary legislation is introduced later in the year.

(With inputs from agencies.)