Netherlands to Screen Foreign Investment in AI and Biotech from 2027
The Dutch government will expand its foreign investment screening regime to cover six additional technology sectors — including artificial intelligence and biotechnology — from 1 January 2027, a move that will affect hundreds of companies operating in the Netherlands.
The expansion, announced by Economic Affairs Minister Heleen Herbert, adds AI, advanced materials, nanotechnology, sensor and navigation technology, nuclear technology for medical use, and biotechnology to the existing investment screening law that already covers semiconductors and quantum computing.
Learning from Nexperia
The policy shift follows the Nexperia controversy, in which the Dutch semiconductor company came under Chinese ownership without triggering meaningful government review. That case — along with last month’s block of a US cloud acquisition — galvanised political support for broader technology screening powers.
“The Netherlands is the target for cyber operations, espionage, and sabotage,” Minister Herbert said in the announcement. “Our goal remains an open economy, but we remain vigilant about risks.”
What Changes for Companies
Under the new rules, any foreign investor seeking to acquire or take a significant stake in a Dutch company working in one of the designated sensitive technology sectors will need to notify the government and potentially undergo a full security review. The Bureau for Investment Screening (Bureau Toetsing Investeringen, BTI) will have the power to block deals or impose conditions.
The Ministry of Economic Affairs estimates that the expansion will bring hundreds of additional Dutch tech firms under the screening umbrella. For startups and scale-ups in AI and biotech — sectors where foreign venture capital is often essential — the new rules add a layer of regulatory complexity to fundraising.
Part of a Broader European Trend
The Netherlands is not alone. The European Union has been pushing member states to strengthen investment screening mechanisms, particularly for technologies with dual-use potential. France, Germany, and the UK have all tightened their regimes in recent years. The Dutch approach aligns with the EU’s broader strategy of protecting strategic technology assets while keeping markets open to benign investment.
For international investors eyeing Dutch AI and biotech companies, the message is clear: from 2027, national security checks will be part of the deal flow — and deals that raise red flags may not go through at all.
