National Security and Infrastructure Investment Legislation

Government have published their response to the National Security and Infrastructure Investment Review Green Paper consultation.

An order has now be put to Parliament that will give the government power to intervene and examine M&A and foreign direct investment in businesses with >£1 million turnover and remove the current requirement for a merger to increase the share of UK supply for companies supplying:-

  • Quantum-based technology. Enterprises who undertake following activities: research into, the development or production of anything designed for use in, or the supply of services employing— (i) quantum computing or simulation; (ii) quantum imaging, sensing, timing or navigation; (iii) quantum communications; or (iv) quantum resistant cryptography;
  • Multi-purpose computing hardware.  Enterprises whose activities include: (a) owning, creating or supplying intellectual property relating to the functional capability of— (i) computer processing units; (ii) the instruction set architecture for such units; (iii) computer code that provides low level control for such units; (b) designing, maintaining or providing support for the secure provisioning or management of— (i) roots of trust of computer processing units; (ii) computer code that provides low level control for such units.
  • Military and dual-use. Enterprises that design or manufacture items or hold related software and technology specified on the UK Military List, UK Dual-Use List, UK Radioactive Source List and EU Dual-Use Lists.

Further definitions of the Quantum and Computing Technologies covered are detailed in section 23 of the Act.

The PLG welcomes the revised and clearer definitions of advanced technologies and encourages companies to consult the detailed Government response outlining the proposed legislation and the draft guidance that has been issued, which includes examples of what transactions and detailed definitions of the technologies covered e.g. in clauses 3.36 to 3.39 including clarity to those supplying non-quantum technology to quantum businesses.

The Government also intends to bring forward longer-term reforms, outlined in the Green Paper.

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