"The Dutch government has intervened to take effective control of technology group Nexperia, which is owned by Chinese group Wingtech Technology. The decision comes amid a growing rift between China and the West over the development of technology such as computer chips and semiconductors, which are essential components for the manufacture of artificial intelligence (AI) technology. Here is more about what the Dutch government announced, why and what happens next."
"In a statement released on Sunday, the Dutch Ministry of Economic Affairs said it had invoked the highly exceptional Goods Availability Act to intervene and take control of Nexperia on September 30. The Goods Availability Act allows the Netherlands to intervene in privately owned companies in exceptional circumstances, such as if the government perceives a threat to the country's economic security or if it is necessary to ensure that critical goods remain available."
Nexperia, a semiconductor firm owned by Chinese parent Wingtech, was placed under effective Dutch government control on September 30 under the Goods Availability Act. The Ministry of Economic Affairs invoked the law after an October 7 emergency hearing by the Dutch Enterprise Chamber raised doubts about sound management under former CEO Zhang Xuezheng. The Goods Availability Act permits intervention when economic security is threatened or critical goods must be kept available. The government cited serious administrative shortcomings that endangered continuity and safeguarding of crucial technological knowledge and capabilities on Dutch and European soil. The intervention aims to ensure product availability during emergencies and protect economic security.
Read at www.aljazeera.com
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