The Dutch government has taken control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, to safeguard the European supply of semiconductors for cars and other electronic goods and protect Europe's economic security.
The Hague explained that the decision stemmed from 'serious governance shortcomings' at Nexperia, with concerns over potential emergencies disrupting chip availability.
Nexperia's owner Wingtech announced intentions to protect its rights and seek government support following the takeover.
This development threatens to exacerbate existing tensions between the European Union and China, which have been rising due to trade disputes and geopolitical issues related to Beijing's relationship with Russia.
In December 2024, the US government had labeled Wingtech a national security concern by placing it on a so-called 'entity list,' restricting American firms from exporting goods to it without special permission.
In the UK, Nexperia faced similar scrutiny and was compelled to divest from its silicon chip plant in Newport, while still operating a facility in Stockport.
The Dutch Economic Ministry indicated that its intervention was a 'highly exceptional' measure under the Goods Availability Act, triggered by acute concerns about governance issues within the company.
The ministry emphasized retaining technological capabilities and economic security as paramount, stating that risks associated with losing these capabilities could be detrimental to both Dutch and European interests.
Authorities have made it clear that Nexperia's production will not be disrupted, aiming to ensure continuity and supply availability.
Nexperia's parent company, Wingtech, witnessed a 10% drop in share price following the news, and a spokesperson affirmed compliance with all regulations and operational continuity.
As tensions simmer, legal talks are in progress for potential recourse following the suspension of Nexperia's chairman, amid ongoing scrutiny from Dutch authorities.
