In a rare move, the Dutch government has taken control of Chinese-owned semiconductor manufacturer Nexperia, citing concerns about national and European economic security. The company, headquartered in Nijmegen, produces chips vital to the automotive and electronics industries across Europe.
On Sunday, the Dutch Ministry of Economic Affairs said it had invoked the Goods Availability Act — a Cold War-era emergency law — to prevent a scenario where “the goods produced by Nexperia would become unavailable in an emergency.”
The ministry described the decision as “highly exceptional,” explaining that it came after detecting “acute signals of serious governance shortcomings.” According to the government’s statement, those issues “posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities.”
Under the new arrangement, the government has the authority to block or reverse Nexperia’s management decisions if it deems them harmful to national interests.
Strong reactions from Wingtech and China
Nexperia’s parent company, Wingtech Technology Co., called the Dutch intervention an “excessive” and “politically motivated” move rooted in geopolitical bias rather than evidence-based security concerns.
“We strongly protest against the discriminatory treatment targeting Chinese firms,” Wingtech said in a statement posted on Chinese social media platform WeChat, as reported by Bloomberg. The company said it had “initiated all legal and diplomatic channels” to challenge the decision and urged The Hague to revoke the measures.
The Chinese government also voiced its disapproval. At a regular press briefing, China Foreign Ministry spokesman Lin Jian stated, “China always opposes overstretching the concept of national security and discriminatory moves that target companies from certain countries.”
Wingtech’s shares fell by the maximum 10% daily limit on the Shanghai Stock Exchange following the announcement, reflecting market unease over the escalating dispute.
Court documents and company filings revealed that Wingtech chairman Zhang Xuezheng has been suspended from Nexperia’s boards by an Amsterdam court order. An independent non-Chinese executive will reportedly be appointed with a “deciding vote” in company matters.
Wingtech confirmed that its control rights had been “temporarily restricted” but maintained that its operations would continue uninterrupted.
Broader geopolitical context
The Dutch action comes amid intensifying global scrutiny of Chinese investments in critical technologies. The move also follows Beijing’s recent tightening of export controls on rare earth materials, key inputs for chipmaking, signaling an ongoing technological tug-of-war between China and Western economies.
Nexperia, originally spun off from Philips Semiconductors and acquired by Wingtech in 2018 for about $3.6 billion, has faced mounting scrutiny across Western nations. In 2022, the UK government ordered the company to sell its Newport Wafer Fab plant in Wales after a national security review.
Now, the Netherlands’ decision marks one of the most forceful European interventions yet in the semiconductor industry, a sector increasingly viewed as critical to both economic stability and strategic autonomy.
In the interim, Nexperia remains operational but under close Dutch oversight. The government said affected parties could challenge the measures in court while it continues to assess whether further steps are necessary to secure Europe’s chip supply.
Earlier this year, it was reported that DeepSeek’s AI models may give Chinese chipmakers an advantage against Nvidia by reducing dependence on high-powered hardware.
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