EU FDI Screening Regulation Brings Mandatory Scope for Dual-Use, AI, Semiconductors and Strategic Raw Materials

The EU’s new foreign-investment screening regulation requires Member States to create screening mechanisms and imposes prior authorization for targets active in specified sensitive areas. Mandatory scope includes dual-use items, military technology, semiconductors, quantum technologies, certain AI technologies, critical infrastructure, strategic raw materials and key financial-market infrastructure. For M&A counsel, this changes deal planning across Europe. FDI risk now needs to be assessed at target-mapping stage, not just after signing, especially for AI, semiconductor, defence, data and critical-infrastructure assets.