"China's leading semiconductor association on Tuesday said the Dutch government was "abusing the concept of 'national security'" in taking control of Nijmegen-based semiconductor manufacturer Nexperia, a fully-owned subsidiary of Chinese company Wingtech. Wingtech's shares slid by the maximum permitted 10% before being frozen in Tuesday's trading in Shanghai for a second consecutive day, after the Netherlands announced the move late on Sunday."
"The Netherlands invoked the country's Goods Availability Act citing national security concerns to take control of Nexperia in late September, the government said when it announced the move late on Sunday evening. The company can continue regular production and operation, but its decisions can be blocked or reversed by the Dutch government. The government said in its statement that it took the step because of "recent and acute signals of serious governance shortcomings and actions" within Nexperia."
"The company makes chips for cars and consumer electronics including "wide gap" chips suited for AI projects and other high-voltage, high-temperature usage. Until Wingtech's 2018 buyout for 3.63 billion (roughly $4.2 billion at current exchange rates) it was a subsidiary of engineering giant Philips. The Netherlands cited concerns about technology transfers to Wingtech in its statement."
The Netherlands used the Goods Availability Act to assume partial control of Nijmegen-based Nexperia citing national security and governance concerns. The government said Nexperia can continue production but that its decisions may be blocked or reversed, citing "recent and acute signals of serious governance shortcomings and actions." Nexperia produces chips for cars and consumer electronics, including "wide gap" chips for AI and high-voltage, high-temperature uses. Wingtech acquired Nexperia from Philips in 2018 for 3.63 billion. The move triggered a maximum-permitted 10% fall in Wingtech shares in Shanghai and drew criticism from Chinese industry bodies.
Read at www.dw.com
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