Dutch government takes control of Chinese-owned chipmaker Nexperia

The Dutch government has seized control of Nexperia, a Chinese-owned semiconductor manufacturer based in the Netherlands, in an extraordinary move to ensure sufficient chip supplies remain in Europe amid rising global trade tensions.

Nexperia, a subsidiary of China Wingtech TechnologyIt specializes in high-volume production of chips used in automotive, consumer electronics and other industries, making it vital to maintaining Europe’s technological supply chains.

Dutch Minister of Economic Affairs on Sunday evening clarified He said he implemented the “Goods Availability Act” for the company in September to “prevent the situation where goods (finished and semi-finished products) produced by Nexperia become unusable in an emergency.”

Following the announcement from The Hague, Wingtech reduced its maximum daily limit of 10% on the Shanghai Stock Exchange.

The Availability of Goods Act allows The Hague to intervene in private companies to ensure the availability of critical goods in preparation for emergencies, and its use comes as the US-China trade war escalates.

The government statement said the “highly exceptional” move was made after the ministry observed “recent and acute signals of serious management deficiencies and actions” at Nexperia.

Stating that the automotive sector is particularly vulnerable, the organization said, “These signals posed a threat to the continuity and protection of important technological knowledge and capabilities on Dutch and European soil. The loss of these capabilities may pose a risk to the economic security of the Netherlands and Europe.”

Governance changes

One corporate filing According to Google’s translation, Wingtech confirmed in an Oct. 13 filing to the Shanghai Stock Exchange that Nexperia was temporarily under external management and that it had been asked to suspend changes to the company’s assets, business or personnel for up to a year.

According to the filing, Wingtech chairman Zhang Xuezheng was immediately suspended from his duties as managing director of Nexperia Holdings and non-executive director of Nexperia following the ministerial order.

It was stated in the file that Nexperia’s daily operations will continue with the impact of measures that have not yet been measured.

“The Dutch government’s decision to freeze Nexperia’s global operations under the pretext of ‘national security’ constitutes excessive interference resulting from geopolitical bias rather than a fact-based risk assessment,” Wingtech said in a since-deleted WeChat post. China policy blog Pekingnology.

It added that since its acquisition of Nexperia in 2019, Wingtech has “strictly complied with laws and regulations in all jurisdictions in which it operates, maintaining transparent operations and sound management” and employs “thousands of local staff” through its R&D and manufacturing facilities in the Netherlands, Germany and Britain.

The Dutch move comes after Beijing on Thursday tightened restrictions on exports of rare earth elements and magnets, which could affect Europe’s automotive industry.

The move could further strain trade relations between China and the Netherlands, following years of restrictions on Dutch company ASML’s exports of advanced semiconductor manufacturing equipment to China.

In 2023, the Netherlands also explored Nexperia’s bid to acquire chip company startup Nowi; later confirmed.