The Dutch government has taken the highly exceptional measure of intervening at Nexperia, a Netherlands based chipmaker owned by the Chinese company Wingtech, citing an acute risk to national and European economic security over potential technology transfer and governance shortcomings. This intervention underscores the growing geopolitical tension surrounding the global semiconductor supply chain and marks a significant step in the broader Western effort to safeguard critical technological capabilities from foreign control.
The Ministry of Economic Affairs used its powers under the Goods Availability Act, an emergency law designed to protect the supply of critical goods, to implement the intervention. The Dutch authorities announced the decision follows "acute signals of serious governance shortcomings" within the firm, specifically to prevent a situation in which Nexperia's crucial chips could become unavailable or its technological knowledge compromised. Nexperia manufactures semiconductors widely used in essential sectors like automotive and consumer electronics. The action gives the government temporary powers to reverse or block strategic decisions, such as the relocation of business units or the appointment of executives, without fully nationalizing the company, though production is allowed to continue. This regulatory move comes amid increasing international scrutiny over the transfer of advanced technology to China.
The crackdown is directly linked to concerns that the company's chip expertise could be leaked to its Chinese parent, Wingtech, or otherwise fall into the hands of the Chinese state, posing a threat to the continuity and safeguarding of critical technological knowledge on Dutch and European soil. Furthermore, a Dutch court has taken parallel action to remove Nexperia's Chinese CEO, Zhang Xuezheng, from his position, temporarily replacing him with a non Chinese director following a request from local Nexperia directors. These measures reveal deep distrust between the company's local management and its foreign ownership, suggesting a broader internal conflict over the firm’s future strategic direction and control of its valuable operational knowledge.
The intervention is set to exacerbate already strained relations between the European Union and China, adding to the ongoing geopolitical friction in the technology sector. It follows other recent instances where Western nations have moved to block Chinese acquisitions of strategic assets, such as the UK government ordering Nexperia to sell its majority stake in the Newport Wafer Fab plant in Wales in 2022 on national security grounds. This trend indicates a decisive shift in policy from viewing China primarily as a business partner to recognizing substantial security and economic risks associated with its control over critical European technology firms. The Dutch action is thus part of a wider, coordinated strategy with allies like the United States and Japan to "de risk" supply chains and protect against the acquisition of sensitive technology that could be used for military modernization. Wingtech has stated its intent to take action to protect its rights and may seek government support, hinting at a potential legal or diplomatic dispute over the Dutch government's emergency intervention.
