Dutch Government Takes Control of Chinese-Owned Chip Manufacturer
(MENAFN) The Dutch government has exercised emergency powers to seize control of Nexperia, a chip manufacturer owned by China’s Wingtech Technology, citing urgent threats to the European Union’s economic and technological security. The move marks the first use of a newly enacted emergency law by the Netherlands Economy Ministry, which announced the decision late Sunday.
Nexperia, formerly part of Dutch electronics giant Philips, produces high-volume semiconductor chips critical for the automotive sector, consumer electronics, and other key industries. Dutch authorities expressed concern that Nexperia’s chips “could become unavailable in an emergency,” posing “a risk to Dutch and European economic security.”
Describing the intervention as “highly exceptional,” the government pointed to “recent and acute signals of serious governance shortcomings and actions” within the company as justification for the takeover.
In response, Wingtech condemned the action as “excessive intervention driven by geopolitical bias, rather than a fact-based risk assessment,” according to a now-deleted WeChat post archived by the Chinese policy blog Pekingnology. The firm pledged to defend its rights and seek support from Chinese authorities. Following the announcement, Wingtech’s shares plunged 10% in Shanghai trading on Monday, triggering a temporary suspension due to hitting the daily limit.
Wingtech later confirmed in a filing to the Shanghai Stock Exchange that its control over Nexperia would be “temporarily restricted” because of the Dutch government’s order and related court rulings, which could hamper decision-making and operational efficiency.
This takeover unfolds amid rising global trade tensions. Over the past year, the EU and China have sparred over alleged dumping of key goods and concerns over China’s industrial overcapacity, with Beijing accusing the EU of protectionist policies. Last week, China intensified export restrictions on rare earth elements and magnets, moves that threaten to further strain the European auto industry.
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