Dutch Government Moves to Restrict Nexperia Control

The Netherlands has intervened in Chinese-owned chipmaker Nexperia, citing national security concerns over sensitive semiconductor tech.

Unprecedented Legal Action Targets Chipmaker

In a rare application of emergency powers, the Dutch government has taken control of certain decision-making processes at Nexperia, a semiconductor firm headquartered in Nijmegen. The move was made under the “Availability of Goods Act,” a law that had never been used before. Officials cited concerns about the potential transfer of sensitive technology to Nexperia’s Chinese parent company, Wingtech. Although the government will not assume ownership, it now holds authority to block or reverse management decisions deemed harmful to national interests.

Wingtech’s shares dropped 10% on the Shanghai stock exchange following the announcement. Nexperia, which manufactures chips for automotive and consumer electronics, continues regular production despite the intervention. The Dutch government emphasized the importance of safeguarding “crucial technological knowledge” but did not provide specific details. According to its statement, losing such capabilities could threaten both Dutch and European economic security.

International Tensions and Legal Fallout

Wingtech responded by accusing the Dutch government of acting out of “geopolitical bias” and claimed that non-Chinese executives at Nexperia had attempted to alter the company’s equity structure through legal means. The company said it was consulting lawyers and seeking support to defend its interests. In a separate filing, Wingtech confirmed that its chairman, Zhang Xuezheng, had been suspended from Nexperia’s board by an Amsterdam court order. An independent, non-Chinese board member with a deciding vote will be appointed in his place.

This development adds to Wingtech’s growing list of regulatory challenges in Western countries. In 2024, the U.S. placed Wingtech on its “entity list” for allegedly aiding China’s efforts to acquire sensitive semiconductor capabilities. The United Kingdom previously ordered Wingtech to divest its ownership of a facility in Newport. Dutch authorities also scrutinized Nexperia’s acquisition of startup Nowi in 2023, reflecting broader concerns over foreign control in strategic tech sectors.

Strategic Importance of Nexperia’s Technologies

Nexperia is known for producing basic components like diodes and transistors, but it also develops more advanced technologies. Among these are wide bandgap semiconductors, which are used in electric vehicles, charging infrastructure, and AI data centers. The company was formerly part of Dutch electronics giant Philips and was acquired by Wingtech in 2018 for $3.63 billion. Despite its ownership structure, Nexperia has stated that it complies with all relevant laws and maintains operational independence from its parent company.

The Dutch government’s intervention comes amid heightened global scrutiny of semiconductor supply chains. While the Netherlands and the United States often coordinate on chip export controls, officials clarified that the Nexperia decision was made independently. The timing, however, coincides with increased pressure from Washington on Chinese tech firms, including threats of new tariffs. As geopolitical tensions rise, the case of Nexperia may serve as a precedent for how governments manage foreign influence in critical technology sectors.