The Dutch government has intervened at Chinese-owned chipmaker Nexperia in the Netherlands, citing a potential risk to national and European economic security and invoking a law to address what it termed governance shortcomings.
The government announced on Sunday it had taken the “highly exceptional” decision under its Goods Availability Act. This law permits intervention in companies during exceptional circumstances, including threats to the country’s economic security or to ensure the supply of critical goods. The action was prompted by what the economic affairs ministry described as “acute signals of serious governance shortcomings” within Nexperia. The government statement did not provide specific details about the nature of the perceived risk, and a spokesperson for the minister of economic affairs told BBC there was no further information to share.
Officials specified the intervention is intended to prevent a scenario where Nexperia’s chips could become unavailable during an emergency. The company manufactures semiconductors used in the automotive sector and consumer electronics. The government also said the move addresses a “threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities.” Despite the government’s action, Nexperia is permitted to continue its operations as normal.
Wingtech, Nexperia’s Shanghai-listed parent company, responded on Monday by announcing it will take actions to protect its rights and will seek support from its government. Following the announcement of the Dutch intervention, shares in Wingtech fell by 10% on Monday morning during trading in Shanghai.
Wingtech is also subject to U.S. trade restrictions, as it is included on the American “entity list.” This designation bars U.S. companies from exporting American-made goods to listed businesses unless they obtain special approval. The U.S. Commerce Department expanded these export controls in September, adding any company that is majority-owned by a Chinese firm to the entity list criteria.
This is not the first instance of Nexperia facing scrutiny over national security. The company was previously compelled to sell its silicon chip manufacturing plant in Newport, Wales, after concerns were expressed by UK ministers and members of parliament. Nexperia continues to own a separate UK facility located in Stockport. Media outlets have reached out to the Chinese embassies in the Netherlands and Brussels for comment on the Dutch government’s decision.
