Dutch Government Takes Control of Chinese-owned Chipmaker Nexperia

The Hague, Oct 13 (AP) The Dutch government has assumed effective control of Chinese-owned chipmaker Nexperia over concerns that the company's corporate governance issues could compromise European economic security.

The Dutch Ministry of Economic Affairs declared the decision on Sunday night, invoking the rarely used Goods Availability Act to take action against Nexperia.

Based in Nijmegen, Nexperia is owned by China's Wingtech Technology and produces semiconductors for automotive and consumer technology industries.

The ministry highlighted concerns that Nexperia's governance could threaten “the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities,” potentially compromising economic security.

The Dutch government did not fully elaborate on its decision to use the act, but the move reflects the broader geopolitical tensions between China and Western countries concerning control over advanced technologies like computer chips.

Nexperia did not immediately respond to requests for comment. In a social media post, Wingtech criticized the Dutch government’s actions as “an excessive intervention based on geopolitical bias rather than a fact-based risk assessment,” under the “unfounded pretext of national security.”

In response to the government's decision, Wingtech's shares dropped 10% on the Shanghai Stock Exchange. The company stated that its control over Nexperia was “temporarily restricted.”

The Dutch government emphasized its intent to prevent a scenario where Nexperia’s chips become unavailable during emergencies, though it allowed regular production to continue.

Nexperia intends to pursue legal remedies and is in touch with government departments to seek support. The Dutch government’s control allows it to block or reverse Nexperia’s decisions if they harm the company’s interests, its future as a Dutch and European enterprise, or the preservation of critical technology for Europe.

Nexperia, spun off from Phillips Semiconductors two decades ago, was acquired by Wingtech in 2018.

In 2023, Nexperia's attempt to purchase Wales-based Newport Wafer Fab was blocked by the British government on national security grounds.

In late 2022, the US Commerce Department also listed Wingtech among Chinese companies subject to export controls, aiming to impair China’s usage of advanced technologies threatening US national security.

China has criticized the action as an overstretch of national security concepts. The Ministry of Foreign Affairs spokesperson Lin Jian urged countries to uphold true market principles and refrain from politicizing economic matters.

Meanwhile, the European Union has been liaising with Dutch authorities and plans to collaborate with the Netherlands on securing crucial technological capabilities in Europe. (AP) SKS SKS

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