Crystal Dike
The Dutch government on Monday took control of Nexperia, a Chinese-owned semiconductor manufacturer based in the Netherlands, in a move aimed at safeguarding Europe’s supply of chips for automobiles and electronic goods and protecting the continent’s economic security.
The Hague said the decision followed “serious governance shortcomings” at Nexperia and was intended to ensure that critical chip supplies would remain available in the event of an emergency.
Nexperia’s Chinese parent company, Wingtech, condemned the takeover and said on Monday it would take steps to “protect its rights” and seek support from the Chinese government.
The development threatens to further strain relations between the European Union and China, which have become increasingly tense in recent months over trade policies and Beijing’s ties with Russia.
In December 2024, the United States placed Wingtech on its “entity list,” citing national security concerns. The designation bars American firms from exporting U.S.-made goods to Wingtech without special government approval.
Nexperia has faced similar scrutiny in the United Kingdom, where it was forced to sell its Newport silicon chip plant following national security concerns raised by lawmakers. It still operates a facility in Stockport.
The Dutch Ministry of Economic Affairs described its intervention as a “highly exceptional” decision made under the Goods Availability Act, following “acute signals of serious governance shortcomings” within Nexperia.
“These signals posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities,” the ministry said in a statement. “Losing these capabilities could pose a risk to Dutch and European economic security.”
While the government did not disclose specific risks, a ministry spokesperson told the BBC there was no further information to share.
Analysts said the move prioritizes economic security over traditional free-market principles. According to EU–China researcher Sacha Courtial of the Jacques Delors Institute, the decision aims to protect Dutch intellectual property and prevent disruptions to European chip supplies.
“In a crisis, a Chinese-owned company could face pressure from Beijing to halt supplies or prioritize sales to China, potentially crippling European industries such as automotive and electronics,” Courtial said.
The China Semiconductor Industry Association on Tuesday expressed “serious concern” over the Dutch government’s action, describing it as “selective and discriminatory” against Chinese companies operating overseas.
Under the new order, Dutch Economic Affairs Minister Vincent Karremans can reverse or block Nexperia’s corporate decisions if they threaten the company’s continuity, Dutch or European economic security, or the availability of chips in an emergency.
The ministry emphasized that Nexperia’s production can continue as normal, adding that “the measure is intended to mitigate that risk.”
Following the announcement, Wingtech’s Shanghai-listed shares fell by 10% on Monday morning.
A Nexperia spokesperson said the company “complies with all existing laws and regulations, export controls and sanctions regimes,” while Wingtech said in a Mandarin statement that operations were continuing uninterrupted and that it remained in close contact with suppliers and customers.
Earlier this month, an Amsterdam court suspended Wingtech chairman Zhang Xuezheng from Nexperia’s boards, and the company has since sought legal advice on possible remedies.
The BBC said it has also contacted the Chinese embassies in the Netherlands and Brussels for comment.