The Dutch government has assumed control of the Chinese-owned chip manufacturer Nexperia, citing concerns regarding potential risks to European economic security due to governance deficiencies.
In a recent statement, the Ministry of Economic Affairs announced the invocation of the Goods Availability Act to intervene in Nexperia’s operations.
Based in Nijmegen, Netherlands, Nexperia produces semiconductors for the automotive and consumer technology sectors and is owned by Wingtech Technology from China. The ministry highlighted that issues related to Nexperia’s governance could jeopardise essential technological knowledge and capabilities within Europe. This intervention aims to prevent any disruption in the availability of Nexperia’s chips during emergencies.
The decision to invoke the act reflects the broader geopolitical tensions between China and the West surrounding the advancement of critical technologies. Wingtech has expressed strong opposition to the Dutch government’s actions, characterising them as an excessive intervention driven by geopolitical considerations.
Following the announcement, Wingtech’s shares experienced a 10% decline on the Shanghai Stock Exchange. The Dutch government clarified that the Minister of Economic Affairs may block or reverse decisions made by the company if they are deemed detrimental to its future and the integrity of the critical technological value chain.
Nexperia, which was established as a spin-off from Phillips Semiconductors two decades ago and acquired by Wingtech in 2018, has also faced scrutiny from the British government, which previously blocked its proposed acquisition of Newport Wafer Fab over national security concerns.
Additionally, the U.S. government included Wingtech in export controls aimed at restricting access to advanced technologies in order to safeguard national security interests.
The European Union is actively engaged with Dutch authorities and will work collaboratively to ensure the protection of vital technological capabilities across the continent.
