Dutch Government Seizes Control of Chinese-Owned Chip Company
The Dutch government has taken control of Nexperia, a Chinese-owned semiconductor firm based in the Netherlands, citing national and European economic security concerns. The move is intended to safeguard the supply of chips essential for sectors like automotive and electronics.
In a statement, the Dutch Ministry of Economic Affairs invoked the rarely used Goods Availability Act, pointing to “acute signals of serious governance shortcomings” at Nexperia. Officials said these issues posed a threat to Dutch and EU technological capabilities and critical infrastructure in times of crisis.
While Nexperia’s production will continue, the government now has powers to block or reverse business decisions that could compromise supply or harm European economic interests. The ministry emphasized that the intervention is “highly exceptional” and aimed at risk mitigation.
The decision follows growing scrutiny of Nexperia’s parent company, Wingtech, which was added to the U.S. Entity List in December 2024 for national security concerns. Under U.S. regulations, companies on the list face strict export controls.
Wingtech responded on Monday, pledging to defend its rights and seek support from the Chinese government. It also confirmed that its operations remain uninterrupted and that it is in contact with suppliers and customers.
The intervention has heightened tensions between the EU and China amid broader geopolitical friction, including trade disputes and China’s close ties with Russia.
Industry backlash
China’s Semiconductor Industry Association condemned the Dutch action as “selective and discriminatory,” claiming it undermines principles of open trade and unfairly targets Chinese companies operating abroad.
Analysts say the move could mark a shift in Europe’s approach to balancing open investment with national security. Sacha Courtial, EU-China researcher at the Jacques Delors Institute, noted that placing security above free-market principles could set a precedent for similar actions across Europe.
Courtial warned that, in a geopolitical crisis, Chinese-owned firms like Nexperia could be pressured by Beijing to restrict chip supply to Europe, threatening the resilience of key industries such as car manufacturing.
Legal action and corporate response
Wingtech disclosed that earlier this month, Nexperia’s chairman Zhang Xuezheng was suspended from its boards by an Amsterdam court order. The company is reportedly consulting legal experts on possible remedies.
Nexperia maintains it complies fully with export controls, sanctions, and relevant laws, but declined further comment.
Meanwhile, Wingtech’s shares dropped 10% on the Shanghai stock exchange following news of the Dutch intervention.