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 stated that it would seek to protect its rights and would pursue government support.
This 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 entity list, identifying the company as a national security concern, barring US companies from exporting to it without special approval.
The Dutch Economic Ministry's decision invokes the Goods Availability Act over acute signals of governance deficiencies within Nexperia that pose a threat to Dutch and European economic security.
It allows the Dutch Minister of Economic Affairs to intervene in the firm's operations if deemed harmful to its business in the Netherlands or Europe.
The company’s production can proceed normally, and the Dutch government states this measure intends to mitigate risk.
Shanghai-listed shares of Nexperia's parent company Wingtech fell by 10% following the announcement. Wingtech confirmed it remains in communication with its suppliers and customers, while also noting a leadership change due to a court order.
