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 announced that it would take actions to protect its rights and seek government support.
This development threatens to raise tensions between the European Union and China, which have increased in recent months over trade issues 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. Under the regulations, US companies are barred from exporting American-made goods to businesses on the list unless they have special approval.
In the UK, Nexperia was forced to sell its silicon chip plant in Newport after MPs and ministers expressed national security concerns. It currently owns a UK facility in Stockport.
The Dutch Economic Ministry 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 of crucial technological knowledge and capabilities in Dutch and European soil.
The Goods Availability Act allows the Hague to intervene in companies under exceptional circumstances. The Dutch Minister of Economic Affairs, Vincent Karremans, now has the authority to reverse or block Nexperia's decisions if they are deemed harmful.
The government has stated that Nexperia's production can continue normally, emphasizing that the measure is intended to mitigate associated risks. However, shares in Wingtech fell by 10% following the announcement.
Nexperia's spokesperson confirmed that the company complies with all existing laws and regulations, and Wingtech noted that it remains in close communication with its suppliers and customers, despite the uncertainty surrounding its future operations.
