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THE HAGUE, Netherlands — In a landmark decision with significant implications for global technology security, the Dutch government has taken effective control of Chinese-owned semiconductor manufacturer Nexperia, citing “highly exceptional” circumstances where corporate governance shortcomings were deemed to threaten European economic security.
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The intervention, announced late Sunday by the Dutch Ministry of Economic Affairs, represents one of the most significant regulatory actions against Chinese technology ownership in Europe to date. The move comes amid growing international scrutiny of technology transfers and follows similar actions by Western governments concerned about protecting critical infrastructure.
“Concerns about Nexperia’s governance posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities,” the ministry stated in its official announcement. “Losing these capabilities could pose a risk to Dutch and European economic security.”
Legal Basis and Immediate Impact
The Dutch government invoked the rarely used Goods Availability Act to intervene in Nexperia’s operations, marking only the second time this legislation has been deployed. The 1976 law allows the government to take control of companies during emergencies when essential goods might become unavailable.
Under the new arrangement, “company decisions may be blocked or reversed by the Minister of Economic Affairs if they are (potentially) harmful to the interests of the company, to its future as a Dutch and European enterprise, and/or to the preservation of this critical value chain for Europe,” the government clarified.
The decision immediately impacted financial markets, with Wingtech shares slumping 10% — the daily limit — on the Shanghai Stock Exchange. Wingtech confirmed to exchange authorities that the Dutch action “temporarily restricts” its control over Nexperia.
Corporate Response and Legal Challenges
Nexperia, which manufactures semiconductors used extensively in automotive and consumer technology industries, did not immediately respond to requests for comment. However, Wingtech Technology issued a strong rebuke through social media channels.
The Chinese parent company characterized the Dutch government’s action as “an excessive intervention based on geopolitical bias rather than a fact-based risk assessment” and accused authorities of using “the unfounded pretext of national security.” Wingtech stated it “firmly opposes the politicization of commercial matters” and vowed to pursue “legal remedies” to protect company and shareholder interests.
Nexperia confirmed it is “actively contacting relevant government departments to seek support” while exploring legal options. The company emphasized that its “regular production process can continue” despite the government intervention.
Broader Geopolitical Context
The Dutch action occurs against a backdrop of escalating technology tensions between China and Western nations. In 2023, the British government blocked Nexperia’s bid to acquire Wales-based chipmaker Newport Wafer Fab, citing national security concerns. Late last year, the U.S. Commerce Department included Wingtech in an expanded list of Chinese technology companies subject to export controls.
U.S. Commerce Secretary Gina Raimondo stated at the time that such decisions were intended to impair China’s ability to use advanced technologies that “pose a risk to our national security.” These developments reflect broader patterns of technology policy evolution across Western nations.
Chinese Ministry of Foreign Affairs spokesman Lin Jian responded to the Dutch decision by stating that China “consistently opposes the overstretching of national security concepts and discriminatory practices targeting companies from specific countries.” He urged “relevant countries should genuinely uphold market principles and avoid politicizing economic and trade issues.”
European Union Coordination
The European Commission confirmed it has been in “close contact” with Dutch authorities and will work with the Netherlands on “next steps” regarding securing crucial technological capabilities within the European Union.
European Commission spokesman Olof Gill emphasized the importance of maintaining critical technology infrastructure within EU borders, noting that semiconductor manufacturing represents a strategic priority for the bloc’s digital sovereignty ambitions.
This coordinated approach reflects growing alignment between government and educational institutions in addressing technology security concerns, though the specific mechanisms differ across jurisdictions.
Historical Context and Future Implications
Nexperia has deep roots in the European technology landscape, having been spun off from Phillips Semiconductors two decades ago before being purchased by Wingtech in 2018. The company’s Nijmegen headquarters have long been considered a cornerstone of the Dutch technology sector.
The Dutch government’s intervention represents a significant escalation in European technology protection measures and may establish precedents for how Western nations address perceived security risks in critical technology supply chains. The decision comes as legal frameworks for national security interventions continue to evolve across multiple jurisdictions.
Industry analysts suggest the Nexperia case could influence how other European nations approach Chinese ownership in sensitive technology sectors, particularly as the European Union implements its own semiconductor strategy aimed at reducing dependency on foreign chip manufacturing.
The Dutch government emphasized that its primary objective is to “prevent a situation in which Nexperia’s chips would become unavailable in an emergency,” while ensuring the company continues normal operations. How this balance between security concerns and commercial continuity will be maintained remains a critical question for all stakeholders.
