Dutch government seizes Chinese chipmaker

The Dutch government has taken control of Netherlands-based Nexperia, a subsidiary of China's Wingtech Technology, in a bid to secure supplies of semiconductors used in automobiles and electronics.

According to the BBC, the Hague administration took the step citing "serious governance deficiencies." The government warned that Nexperia's critical technologies could threaten Europe's economic security and disrupt chip supplies in emergency situations.

“These signals pose a risk to the protection of vital technological knowledge and capabilities in the Netherlands and Europe,” the Ministry of Economy said in a statement.

Shares Lost Value

Under the decision, Dutch Economy Minister Vincent Karremans will have the authority to reverse or block decisions that could harm the company's interests in Europe. Production will continue as normal, it was stated.

Nexperia's Chinese parent company, Wingtech, announced it would take legal action to protect its rights following the ruling. The company's shares on the Shanghai Stock Exchange fell 10 percent following the news.

Wingtech stated in a statement that its operations were continuing uninterrupted and that it was in close contact with its suppliers and customers. However, a Dutch court suspended Wingtech Chairman Zhang Xuezheng from his duties at Nexperia earlier this month.

This development carries the potential to further escalate tensions between the European Union and China, which have recently been strained due to trade policies and Beijing's relations with Russia.

The US blacklisted Wingtech in December 2024, citing it as a national security risk. The UK similarly forced Nexperia to divest its chip factory in Newport due to national security concerns.