Amid rising geopolitical tensions, the Dutch government has seized control of powers over Chinese-owned chipmaker Nexperia, aiming to protect critical semiconductor technology and European economic security.
The Dutch government has taken unprecedented steps to intervene in Chinese-owned chipmaker Nexperia, intensifying tensions with Beijing amid global concerns over semiconductor technology and intellectual property.
According to a Reuters report, authorities in The Hague said they acted to prevent sensitive technology from being transferred to Nexperia’s Chinese parent company, Wingtech, which is listed in Shanghai.
Nexperia, based in Nijmegen, produces chips for automotive and consumer electronics applications.
The government invoked the ‘Availability of Goods Act,’ a law never previously used, granting it the power to reverse or block management decisions deemed harmful, though it will not assume ownership. Production at Nexperia continues as usual. Following the announcement, Wingtech shares fell 10% in Shanghai trading.
Wingtech described the Dutch move as an interference driven by geopolitical bias, claiming non-Chinese Nexperia executives had attempted to alter the company’s equity through legal proceedings in what it reportedly called a “cloaked power grab.”
The intervention follows prior US sanctions. In December 2024, Wingtech was added to the US Entity List for allegedly helping China acquire sensitive semiconductor capabilities. Nexperia said it complies with all US rules, maintaining operational separation from its Chinese parent.
A court ruling in Amsterdam on 7 October confirmed these developments. It suspended Wingtech CEO Zhang Xuezheng from Nexperia’s board and appointed Dutch businessman Guido Dierick with a deciding vote.
Control of most of Nexperia’s shares was temporarily transferred to a Dutch lawyer for management oversight, with support from the Dutch state and the company’s labour council.
The Dutch government cited administrative problems at Nexperia as posing a threat to “crucial technological knowledge,” warning that losing these capabilities could jeopardise Dutch and European economic security.
Nexperia is a global manufacturer of diodes and transistors and also develops advanced ‘wide gap’ semiconductors used in electric vehicles, chargers, and AI data centres.
Wingtech is consulting lawyers and seeking government support in China to protect its ‘legitimate rights and interests,’ while noting that the Dutch intervention will temporarily restrict its control over Nexperia, affecting decision-making and operational efficiency.
The move highlights the growing scrutiny of Chinese technology companies by Western governments. The Netherlands previously examined Nexperia’s 2023 acquisition of startup Nowi, while the UK had earlier ordered Wingtech to divest a facility in Newport, reflecting a broader effort to safeguard strategic semiconductor assets.
