The Dutch government has officially taken control of Nexperia, a prominent chip manufacturer with Chinese ownership based in the Netherlands. This decisive action is driven by a commitment to secure the European supply of essential semiconductors, vital for industries like automotive and electronics, and to bolster the continent’s economic security. The Dutch authorities cited “serious governance shortcomings” as a key reason for the intervention, emphasizing the need to prevent disruptions to chip availability during emergencies.
Nexperia’s parent company, Wingtech, based in China, has indicated its intention to take protective measures for its rights and is seeking government support. This development escalates existing trade tensions between the European Union and China, which have been growing due to various factors including trade policies and China’s stance on the conflict in Ukraine.
Previously, the US government had placed Wingtech on its “entity list” in December 2024, flagging the company as a national security concern, which restricts American firms from exporting goods to it without special authorization. In the UK, Nexperia was compelled to divest its silicon chip plant in Newport following national security concerns raised by government officials. The company currently operates a facility in Stockport.
The Dutch Ministry of Economic Affairs described the intervention as “highly exceptional,” made under the Goods Availability Act. This law allows the government to step in when there are threats to economic security or to ensure the supply of critical goods. The Ministry stated that the decision was prompted by “acute signals of serious governance shortcomings” at Nexperia, which could jeopardize the continuity of crucial technological knowledge and capabilities within the Netherlands and Europe.
While the specific reasons behind the security concerns were not detailed, the Dutch government assured that Nexperia’s production activities would continue as usual, with the intervention aimed at mitigating potential risks.
Following the news, shares of Wingtech, Nexperia’s parent company, saw a 10% decline on Monday. A spokesperson for Nexperia affirmed the company’s compliance with all relevant laws and regulations, including export controls and sanctions. Wingtech, in a statement, confirmed that its operations remain uninterrupted and that it is maintaining close communication with its suppliers and customers.
Earlier this month, the chairman of Wingtech, Zhang Xuezheng, was reportedly suspended from Nexperia’s boards by a court order in Amsterdam. The company is currently exploring potential legal remedies.
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