Dutch Government Suspends Control Order on Chinese-Owned Chipmaker Nexperia

Dutch Government Lifts Nexperia Control Order

The Dutch government announced on November 19, 2025, the suspension of an order that allowed it to seize control of chipmaker Nexperia from its Chinese owner, Wingtech Technology. This move by the Netherlands follows a series of 'constructive talks' with Chinese authorities and is aimed at resolving a dispute that had caused significant concerns within global semiconductor supply chains. Dutch Economy Minister Vincent Karremans stated that the decision was made in consultation with European and international partners, acknowledging measures taken by China to ensure the supply of chips to Europe and the rest of the world.

Background to the Intervention

The original order was imposed on September 30, 2025, under the rarely invoked Goods Availability Act, marking its first use since 1952. The Dutch government cited 'national security concerns' and 'serious governance shortcomings' at Nexperia as reasons for its intervention. These concerns reportedly stemmed from actions attributed to Nexperia's then-CEO, Zhang Xuezheng, involving the alleged improper transfer of product assets, technology, and knowledge to a foreign entity. The measure was intended to safeguard Europe's access to critical semiconductor production and technological expertise, particularly for chips used in the automotive and consumer electronics industries. Nexperia, headquartered in Nijmegen, Netherlands, was acquired by China's Wingtech Technology in 2019.

Impact on Supply Chains and Diplomatic Efforts

Following the Dutch government's initial intervention, Beijing responded by blocking exports of Nexperia chips from its Chinese factories. This action led to widespread concerns about potential shortages in the global automotive industry, with some automakers, including Honda, reportedly forced to cut production. The subsequent 'constructive talks' between Dutch and Chinese authorities, alongside a broader trade truce between U.S. President Donald Trump and Chinese leader Xi Jinping, paved the way for the suspension of the control order. Minister Karremans described the suspension as a 'show of goodwill,' indicating a positive outlook on the measures taken by Chinese authorities to ensure chip supply.

Remaining Issues and Future Outlook

While the Dutch government's control order has been suspended, the situation is not entirely resolved. Separately, the Enterprise Chamber of the Amsterdam Court of Appeal had ruled to suspend Nexperia's CEO, Zhang Xuezheng, and placed the voting rights of shares indirectly held by Wingtech Technology under the administration of an independent party. This ruling remains in effect, with CFO Stefan Tilger continuing as interim CEO. China welcomed the Dutch government's decision as a 'first step in the right direction' but noted that the Enterprise Chamber ruling remains a significant obstacle to a full resolution. The broader context includes earlier concerns raised by U.S. officials regarding Nexperia's management and the placement of Wingtech on the U.S. Entity List in December 2024, highlighting ongoing geopolitical complexities in the semiconductor sector.