Dutch Government Seizes Control of Chinese-Owned Chipmaker Nexperia Citing National Security

Dutch Government Intervenes in Nexperia Operations

The Dutch government has taken the unprecedented step of invoking emergency powers to assert control over Nexperia, a semiconductor manufacturer headquartered in Nijmegen, Netherlands, but owned by China's Wingtech Technology. The decision, announced on Sunday, October 13, 2025, follows the invocation of the rarely used 'Goods Availability Act' on September 30, 2025. This 'highly exceptional' intervention aims to address serious governance shortcomings and national security concerns related to the potential transfer of crucial technological knowledge.

Emergency Powers and Scope of Control

The intervention was carried out under the Goods Availability Act (Wet beschikbaarheid goederen), a Cold War-era law from 1952 designed to secure essential goods during a national emergency. This marks the first time the Netherlands has utilized this authority. Under the order, the Dutch state will not assume ownership of Nexperia, but the Minister of Economic Affairs gains the power to block or reverse management decisions deemed harmful to national or European interests. For a period of up to one year, Nexperia and its global subsidiaries are prohibited from making any adjustments to their assets, intellectual property, business operations, or personnel. Despite this, Nexperia's regular production processes are permitted to continue.

Rationale: National Security and Technological Safeguards

The Dutch Ministry of Economic Affairs cited 'recent and acute signals of serious governance shortcomings and actions' within Nexperia as the primary trigger for the intervention. These issues, according to the government, posed a direct threat to 'the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities.' Officials warned that 'losing these capabilities could pose a risk to Dutch and European economic security.' Nexperia is a significant producer of basic computer chips, such as diodes and transistors, and also develops more advanced 'wide gap' semiconductors critical for electric vehicles, chargers, and AI data centers. The government emphasized the need to ensure the availability of these chips for European industries, particularly the automotive sector, during potential emergencies.

International Reactions and Geopolitical Context

The Dutch government's move has elicited strong reactions. Wingtech Technology, Nexperia's Chinese parent company, condemned the intervention as 'excessive interference driven by geopolitical bias' and 'politically motivated.' Wingtech stated it would pursue 'legal remedies' and seek government support to protect its interests. Following the announcement, Wingtech's shares plummeted 10%, hitting their daily limit on the Shanghai Stock Exchange. China's Foreign Ministry spokesman, Lin Jian, voiced disapproval, stating that Beijing 'always opposes overstretching the concept of national security and discriminatory practices against companies from specific countries.' This event unfolds amidst escalating global trade tensions and increased scrutiny of Chinese investments in critical technology sectors. Wingtech itself was placed on the U.S. 'entity list' in December 2024, and Nexperia previously faced a UK government order in 2022 to divest its ownership of Newport Wafer Fab due to national security concerns.