Dutch Government Takes Control of Chinese-Owned Semiconductor Firm Nexperia
The Dutch government has stepped in to manage Nexperia, a semiconductor manufacturer owned by China’s Wingtech Technology, citing potential risks to Europe’s economic security. This intervention is described as “highly unusual.”
In a statement released late Sunday, the Dutch Economy Ministry announced that it had invoked the little-used Goods Availability Act to oversee Nexperia’s operations. The company, which produces semiconductors for both the automotive and consumer technology sectors, is based in Nijmegen, Netherlands.
According to the ministry, concerns regarding Nexperia’s governance threaten the continuity and safeguarding of vital technical knowledge within Dutch and European borders. The loss of this expertise, they noted, could have implications for both the Netherlands and Europe’s economic security, though specifics were not provided.
The government expressed a desire to avert scenarios where Nexperia’s chips might become “unusable in an emergency.”
While details surrounding the decision made on September 30 are scarce, it underscores the escalating geopolitical tensions between China and Western nations concerning the ownership and development of advanced technologies, such as semiconductors.
Nexperia has not commented on the matter. Conversely, Wingtech criticized the Dutch government’s action, labeling it an “excessive intervention” driven by geopolitical biases rather than a legitimate risk assessment. They argue that the decision is based on “unfounded claims of national security.”
Following the announcement, Wingtech’s shares plummeted by 10%—the maximum daily limit—on the Shanghai Stock Exchange. The company informed the exchange that this situation “temporarily limits” their control over Nexperia.
The Dutch government has reiterated that they aim to ensure Nexperia’s chips remain “available in an emergency,” assuring that normal production processes for the company can proceed unhindered.
Nexperia stated it plans to seek “legal remedies” to safeguard the interests of its shareholders and is actively engaging with relevant government departments for support.
With this control, the Dutch government indicated that the Minister of the Economy can block or overturn decisions by the company if they could potentially harm its interests, future as a Dutch and European entity, or the maintenance of crucial value chains in Europe.
Nexperia was established two decades ago as a spin-off from Philips Semiconductors and was acquired by Wingtech in 2018. Earlier this year, the UK government blocked Nexperia’s acquisition of Newport Wafer Fab, citing national security concerns.
Additionally, late last year, the U.S. Department of Commerce included Wingtech on a list of Chinese tech firms facing export controls, with the intention of limiting China’s ability to exploit advanced technologies that could threaten U.S. national security.
In remarks made on Monday, Foreign Ministry spokesperson Lin Jian stated that China consistently opposes the broadening of national security concepts that unfairly target specific companies. He urged relevant nations to adhere to market principles and refrain from politicizing economic and trade matters.
European Commission spokesman Olof Gil mentioned that the EU is in “close contact” with Dutch authorities and will collaborate with the Netherlands on subsequent actions to secure critical technological capabilities across Europe.
