In brief
The Dutch government has taken exceptional measures to assume control of Nexperia, a Chinese-owned chipmaker, in response to governance issues and to ensure the continuity of semiconductor supply in Europe. This move heightens existing trade tensions between the EU and China and aims to safeguard the continent's economic security in light of potential future crises.
The Dutch government has taken control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, in a bid to safeguard the European supply of semiconductors for cars and other electronic goods and protect Europe's economic security.
The Hague said it took the decision due to serious governance shortcomings and to prevent the chips from becoming unavailable in an emergency.
Nexperia's owner Wingtech said on Monday that it would take actions to protect its rights and would seek government support. This development threatens to raise tensions between the European Union and China, which have increased in recent months over trade and Beijing's relationship with Russia.
In December 2024, the US government placed Wingtech on its so-called entity list, identifying the company as a national security concern.
Under the regulations, US companies are barred from exporting American-made goods to businesses on the list unless they have special approval.
In the UK, Nexperia was forced to sell its silicon chip plant in Newport after MPs and ministers expressed national security concerns. It currently owns a UK facility in Stockport.
The Dutch Economic Ministry made the highly exceptional decision to invoke the Goods Availability Act over acute signals of serious governance shortcomings within Nexperia.
The ministry asserted that losing crucial semiconductor capabilities could pose a risk to Dutch and European economic security.
The Goods Availability Act allows the Hague to intervene in companies under exceptional circumstances, intended to ensure the supply of critical goods.
The Dutch Minister of Economic Affairs, Vincent Karremans, now has the authority to reverse or block Nexperia's decisions if they are harmful to the interests of the company's future or to ensure supply remains available in emergencies.
The Dutch government has assured that the company’s production can continue as normal while the intervention takes place.
As a result of these developments, Shanghai-listed shares in the parent company Wingtech fell by 10% on Monday morning. A Nexperia spokesperson stated that the company complies with all existing laws and regulations, export controls and sanctions regimes, while Wingtech affirmed that its operations remain uninterrupted.
This situation has sparked significant concern and drew attention from legal representatives as Wingtech reportedly is in discussions regarding potential legal remedies.
