Dutch government gains control of Chinese-owned chip company

The Dutch government has taken control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, to protect Europe’s supply of semiconductors for cars and other electronics and to safeguard Europe’s economic security.

The Hague said the decision was made due to “serious governance deficiencies” and to prevent chips becoming unusable in emergency situations.

Wingtech, the owner of Nexperia, said Monday it would take action to protect its rights and seek government support.

These developments risk escalating tensions between the EU and China, which have heightened in recent months over trade and China-Russia relations.

In December 2024, the U.S. government included Wingtech on its so-called “entity list,” identifying the company as a national security concern.

The regulations prohibit U.S. companies from exporting U.S. products to companies on the list unless they receive special approval.

In the UK, Nexperia was forced to sell its silicon chip factory in Newport after lawmakers and ministers expressed concerns about national security. We currently own a UK facility in Stockport.

The Dutch Ministry of Economic Affairs said it had taken the “highly exceptional” decision to invoke the Goods Availability Act in response to “serious signals of serious governance deficiencies” within Nexperia.

“These signals posed a threat to the continuity and protection of vital technical knowledge and capabilities on Dutch and European soil,” the ministry said in a statement.

“Losing these capabilities could pose a risk to the economic security of the Netherlands and Europe.”

The statement did not detail why it believed the company’s operations were at risk. A spokesman for the Economy Secretary told the BBC he had no further information to share.

EU-China researcher Sacha Courtial said the move was aimed at maintaining the flow of European chip supplies and protecting Dutch intellectual property.

In a crisis, Chinese-owned companies could be pressured to cut supplies from China or prioritize sales to China, dealing a blow to European industries such as carmakers and electronics manufacturers, he said.

The Hague’s move puts economic security “over free market investment principles” and could pave the way for other governments to follow suit, said Courtial of the Jacques Delors Institute.

The Goods Availability Act is designed to allow The Hague to intervene with companies in exceptional circumstances. These include threats to the country’s economic security and ensuring the supply of critical goods.

The order allows Dutch Economy Minister Vincent Karremans to overturn or block Nexperia’s decisions if they are potentially harmful to the company’s interests, the future of its business in the Netherlands or Europe, or to ensure that supplies remain available in the event of an emergency.

The Dutch government added that the company’s production could continue as normal.

“This measure is aimed at mitigating the risk,” the ministry said.

Shanghai-listed shares of Wingtech, Nexperia’s parent company, fell 10% on Monday morning.

A Nexperia spokeswoman said the company “complies with all existing laws, regulations, export controls and sanctions regimes” and declined to comment further.

In a statement released in Chinese, Wingtech said its operations were continuing without interruption and it was maintaining close communication with its suppliers and customers.

Wingtech Nexperia said in a stock filing that Chairman Zhang Xuezheng was suspended from Nexperia’s board following an Amsterdam court order earlier this month.

The company added that it was also discussing potential legal remedies with its lawyers.

The BBC also contacted the Chinese embassies in the Netherlands and Brussels.