Dutch Government Seizes Control of China-Owned Chipmaker

Published: 13 October. The English Chronicle Desk.

In a significant move aimed at safeguarding Europe’s technological and economic security, the Dutch government has assumed control over Nexperia, a China-owned semiconductor manufacturer headquartered in the Netherlands. The decision reflects mounting concerns over the continuity of critical chip supplies for automobiles and other electronics in Europe, amid broader geopolitical tensions.

The government cited “serious governance shortcomings” within Nexperia as the primary reason for the intervention. Dutch authorities warned that without such measures, the firm’s production could become unreliable in times of emergency, posing risks to both Dutch and European industries that depend heavily on a steady supply of semiconductors. The Ministry of Economic Affairs described the decision as “highly exceptional,” invoking the Goods Availability Act to mitigate potential threats to technological capabilities and economic stability.

Nexperia’s parent company, Wingtech, responded swiftly, asserting that it would take all necessary actions to safeguard its rights and seek government support. The move, however, is likely to escalate tensions between the European Union and China, especially given the recent deterioration of relations over trade and Beijing’s close ties with Russia. Analysts note that the Netherlands is not the first Western nation to raise security concerns over Wingtech’s operations. In December 2024, the US government placed the company on its so-called “entity list,” restricting exports of American-made goods unless special approval is obtained. Similarly, in the United Kingdom, Nexperia was compelled to divest its silicon chip facility in Newport over national security concerns, though it continues to operate its Stockport plant.

Under the Dutch order, Minister of Economic Affairs Vincent Karremans now has the authority to block or reverse company decisions that could endanger the firm’s future operations in the Netherlands or Europe or threaten the availability of essential goods during emergencies. Despite the intervention, officials assured that Nexperia’s production would continue uninterrupted. The ministry emphasized that the action is “intended to mitigate risk” and ensure the uninterrupted supply of critical semiconductor technology.

The announcement immediately affected financial markets, with shares of Wingtech listed in Shanghai dropping by 10% on Monday morning. A Nexperia spokesperson maintained that the company fully complies with all relevant laws, export controls, and sanctions, while Wingtech confirmed in a statement in Mandarin that operations remain ongoing and that the company continues to liaise with its suppliers and customers. The company also disclosed that Zhang Xuezheng, chairman of Wingtech, had been suspended from Nexperia’s boards following a recent Amsterdam court order, and that legal counsel is exploring potential remedies.

This decisive action by the Dutch government underscores the growing importance of semiconductor security in Europe and highlights the delicate balance between foreign investment and national economic interests. As global supply chains become increasingly intertwined with strategic geopolitical considerations, the case of Nexperia is likely to serve as a benchmark for similar interventions across the European Union in the coming years.