The intervention gives the government the power to reverse or block management decisions it sees as harmful.
The Netherlands government announced on Oct. 12 that it is taking control of a Dutch chipmaker over concerns about the potential transfer of crucial technology to its Chinese parent company.
Nexperia, which manufactures semiconductors for cars and consumer electronics, is owned by Jiaxing-based company Wingtech, which is partially owned by the Chinese Communist Party (CCP).
The Dutch Ministry of Economic Affairs called the move “highly exceptional” and stated that it was in response to “acute signals of serious administrative shortcomings and actions” at Nexperia, in a statement outlining the invocation of the Goods Availability Act on Sept. 30
The intervention gives the government the power to reverse or block management decisions it sees as harmful.
However, the company’s regular production will be allowed to continue.
The ministry stated that it had noticed signals that “posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities.”
“Losing these capabilities could pose a risk to Dutch and European economic security,” the statement reads, saying that the measure is “intended to mitigate that risk.”
Nexperia has the right to appeal the decision in the Dutch courts.
After the action by the Dutch government, Wingtech shares dropped by 10 percent on the Shanghai stock exchange on Oct. 13, according to Bloomberg.
Wingtech said in a statement released to Chinese financial news site Sina Finance that it “firmly opposed the politicization of commercial issues” and branded the Dutch government’s security concerns “unfounded.”
“This action seriously violates the [European Union’s] long-standing advocacy for market economy, fair competition, and international trade rules,” Wingtech stated. “We strongly protest this discriminatory treatment against Chinese-funded enterprises.”
A spokesperson for Nexperia said that the company adheres to “all existing laws and regulations, export controls and sanction regimes.”
Nexperia is one of the world’s largest makers of simple computer chips, such as diodes and transistors. It also develops more advanced technologies that use chips to make batteries more efficient.
Wingtech bought Nexperia, which is based in Nijmegen, in its entirety for about $3.63 billion in 2018.
Wingtech was placed on the U.S. “entity list” in December 2024, identifying it as a national security concern.
