Dutch government takes control of China-owned chip firm

"The Dutch government has taken control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, in a bid to safeguard the European supply of semiconductors for cars and other electronic goods and protect Europe's economic security. The Hague said it took the decision due to "serious governance shortcomings" and to prevent the chips from becoming unavailable in an emergency. Nexperia's owner Wingtech said on Monday that it would take actions to protect its rights and would seek government support."

"The development threatens to raise tensions between the European Union and China, which have increased in recent months over trade and Beijing's relationship with Russia. In December 2024, the US government placed Wingtech on its so-called "entity list", identifying the company as a national security concern. Under the regulations, US companies are barred from exporting American-made goods to businesses on the list unless they have special approval."

"The Dutch Economic Ministry said it made the "highly exceptional" decision to invoke the Goods Availability Act over "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.""

The Dutch government invoked emergency powers to take control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, citing "serious governance shortcomings" and the risk that chips could become unavailable in an emergency. The move is presented as protecting European semiconductor supply chains, Dutch intellectual property, and economic security. Wingtech, Nexperia's owner, said it would act to protect its rights and seek government support. The action follows broader restrictions on Wingtech, including its placement on the US "entity list" in December 2024, and precedes prior UK divestment of Nexperia's Newport plant over national security concerns.

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