The Dutch government has taken control of Nexperia, a Chinese-owned semiconductor manufacturer based in the Netherlands, citing “serious governance shortcomings” and the need to safeguard Europe’s supply of critical electronic components.
The decision, announced by the Ministry of Economic Affairs in The Hague, was made under the rarely used Goods Availability Act — a law that allows government intervention in companies when national or economic security is at risk. Officials said the move was necessary to ensure the continuity of semiconductor production in Europe and to prevent potential disruptions in the supply of chips vital to cars, electronics, and other essential technologies.
“These signals posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities,” the ministry said in a statement. “Losing these capabilities could pose a risk to Dutch and European economic security.”
Nexperia, which employs thousands of workers and supplies chips to major automotive and electronics manufacturers, is a subsidiary of China’s Wingtech Technology. Wingtech responded to the Dutch government’s move by vowing to “take actions to protect its rights” and seek support from Beijing. Shares in the Shanghai-listed company fell 10 percent on Monday morning following the announcement.
The decision is expected to further strain relations between the European Union and China, already tense over trade disputes and Beijing’s growing ties with Russia. In December 2024, the United States placed Wingtech on its “entity list,” labeling it a national security concern and restricting American companies from exporting goods to it without a special license.
This is not the first time Nexperia has faced scrutiny in Europe. In the United Kingdom, the company was forced to sell its Newport Wafer Fab facility in 2022 following a government review that raised national security concerns. It continues to operate another plant in Stockport.
Under the Dutch government’s emergency order, Economic Affairs Minister Vincent Karremans now has the authority to block or reverse company decisions deemed harmful to national interests or to the stability of semiconductor supply chains. However, the ministry said Nexperia’s production operations would continue “as normal” to avoid market disruption.
“This measure is intended to mitigate that risk,” the ministry added, without elaborating on the specific governance concerns that triggered the intervention.
Wingtech later confirmed that its chairman, Zhang Xuezheng, had been suspended from Nexperia’s board by an Amsterdam court earlier this month. The company said it was consulting with legal advisers about possible remedies but stressed that operations remain “uninterrupted.”
The BBC has reached out to Chinese embassies in the Netherlands and Brussels for comment.
