Netherlands Seizes Control of Chinese-Owned Chipmaker Nexperia to Protect European Economic Security
The Dutch government has taken control of Nexperia, a Chinese-owned semiconductor manufacturer based in the Netherlands, citing serious concerns over governance and the need to safeguard Europe’s access to critical chip supplies. The move underscores growing Western unease about China’s influence in high-tech industries and marks another flashpoint in the widening trade rift between Beijing and the European Union.
Protecting Europe’s Semiconductor Supply Chain
Announcing the decision on Monday, the Dutch Ministry of Economic Affairs said it had invoked the Goods Availability Act, a rarely used legal instrument that allows the state to intervene in private companies when national or economic security is at risk.
The government said the takeover was necessary because of “serious governance shortcomings” within Nexperia that could threaten the continuity of chip production vital for industries across Europe — particularly the automotive and electronics sectors.
“This measure is intended to ensure the continued availability of crucial technological knowledge and production capabilities within Dutch and European territory,” the ministry said in a statement. “Losing these capabilities could pose a risk to Dutch and European economic security.”
Officials emphasized that Nexperia’s day-to-day operations will continue as normal, and production will not be disrupted.
China-Owned Firm Faces Increased Scrutiny
Nexperia, originally a Dutch company spun off from Philips in 2017, was acquired by China’s Wingtech Technology in 2019. The firm produces essential semiconductors used in cars, smartphones, and industrial electronics, and employs thousands across Europe, including in the Netherlands and the United Kingdom.
However, the company has faced increasing scrutiny from Western governments amid fears that Chinese ownership could give Beijing access to sensitive technologies or critical supply chains.
Wingtech, which is listed on the Shanghai Stock Exchange, responded to the Dutch government’s move by saying it would “take actions to protect its rights” and was seeking support from Chinese authorities. In a statement, the company added that its global operations were continuing uninterrupted and that it remained in contact with suppliers and customers.
Shares in Wingtech fell by nearly 10% on Monday morning following the news, reflecting investor concern over the growing regulatory pressure facing Chinese tech firms in Europe.
Rising Tensions Between the EU and China
The decision is likely to deepen tensions between China and the European Union, whose relations have already been strained by disputes over trade, state subsidies, and Beijing’s ties with Moscow.
In December 2024, the United States added Wingtech to its “Entity List,” designating the company as a potential national security threat. This listing bars American firms from exporting U.S.-made goods or technologies to Wingtech without special government approval — effectively cutting off key suppliers.
European governments have since faced pressure to follow Washington’s lead and tighten their own restrictions on Chinese technology companies.
Nexperia’s Previous Troubles in the UK
This is not the first time Nexperia has faced government intervention. In the United Kingdom, the company was forced to sell its silicon wafer plant in Newport, Wales, in 2023 after lawmakers raised national security concerns.
British MPs argued that Chinese control of the facility could expose sensitive technologies and undermine the UK’s domestic semiconductor strategy. Although Nexperia disputed the claims, it ultimately sold the site under government pressure.
The company still owns a smaller production facility in Stockport, England, which continues to operate under UK regulatory supervision.
A Rare Move Under Dutch Law
The Goods Availability Act, which the Netherlands invoked in this case, allows the government to intervene directly in corporate governance during exceptional situations that threaten economic stability or the supply of critical goods.
By taking control, the Dutch Minister of Economic Affairs, Vincent Karremans, now has the authority to reverse or block key decisions made by Nexperia’s management if they are deemed harmful to the company’s future or to Europe’s semiconductor supply chain.
A spokesperson for Karremans described the move as “highly exceptional” but justified, given the “acute signals of governance risks” observed within Nexperia.
The government did not provide further details about those governance issues, and the ministry declined to elaborate when contacted by the BBC.
Wingtech’s Response and Legal Action
In response, Wingtech confirmed that it was reviewing legal options and considering potential appeals through Dutch and European courts.
The company disclosed in a stock market filing that its chairman, Zhang Xuezheng, had been suspended from Nexperia’s board by an Amsterdam court order earlier this month. It said the suspension was part of the ongoing dispute and that its legal team was exploring remedies.
Despite these developments, Wingtech insisted that its production lines and business operations remained unaffected. “We comply with all existing laws, export controls, and sanctions regimes,” a Nexperia spokesperson said in a statement. “We continue to operate transparently and within the framework of Dutch and European regulations.”
Europe’s Broader Strategy on Tech Security
The takeover of Nexperia highlights a broader effort by European nations to secure supply chains for critical technologies, especially as global chip shortages and geopolitical rivalries reshape industrial priorities.
The European Union’s “Chips Act”, adopted in 2023, aims to double Europe’s share of global semiconductor production to 20% by 2030. To achieve this, EU governments have ramped up funding for domestic production and introduced stricter screening for foreign investments in sensitive industries.
Analysts say the Dutch move aligns with this trend. “Europe is sending a clear message that technological sovereignty is a national security issue,” said an EU policy expert. “The Nexperia decision is part of a wider push to ensure that critical chipmaking capacity cannot be compromised by external influence.”
Geopolitical Ripple Effects
The Dutch decision could spark a diplomatic backlash from Beijing, which has repeatedly criticized Western governments for what it calls “discriminatory” actions against Chinese firms.
China’s embassies in The Hague and Brussels have not yet commented on the decision, though previous interventions in similar cases have drawn sharp condemnation from Beijing.
Observers say the move could also complicate trade negotiations between the EU and China, particularly as Europe weighs new tariffs and trade restrictions on Chinese electric vehicles and green technologies.
As tensions rise, the Nexperia case is becoming a symbol of Europe’s delicate balancing act — protecting economic sovereignty without triggering a full-blown trade conflict with the world’s second-largest economy.