Source · Select Committees · Business and Trade Committee
Recommendation 3
3
Acknowledged
Paragraph: 66
The exercise of controls under the National Security and Investment Act is still at an...
Conclusion
The exercise of controls under the National Security and Investment Act is still at an early stage. We note reservations about the speed of some assessments under the Act and under the export control process, and we will be conducting scrutiny of how powers under the National Security and Investment Act are being used via our National Security and Investment Sub-Committee. Nevertheless, it is our view that the overall purpose of the Act in monitoring acquisitions with a view to safeguarding national security is sound. We believe that it has the potential to help meet concerns about hostile access to intellectual property, knowledge and expertise within the semiconductor industry, and such powers should be used to avoid this.
Government Response Summary
The Government acknowledges the importance of protecting the UK from national security risks arising from the semiconductor industry and will continue to work to make sure that the use of export and investment controls is clear and easy to understand for businesses.
Paragraph Reference:
66
Government Response
Acknowledged
HM Government
Acknowledged
The Government is clear on the vital importance of protecting the UK from national security risks arising from the semiconductor industry. The National Security and Investment Act came into force in January 2022 and grants the government greater powers to intervene in acquisitions and investments into entities and assets where those transactions may pose a national security risk. The Act is actor agnostic and interventions are made on a case-by-case basis. Foreign investment is vital to the UK’s domestic semiconductor sector, and as an open economy, the UK welcomes foreign trade and investment from around the world, where that trade and investment supports UK growth and jobs. We will continue to work to make sure that the use of export and investment controls is clear and easy to understand for businesses, and will work further through the National Semiconductors Strategy to support the operation of the National Security and Investment Act.