Dutch Government Seizes Control of Chinese-Owned Chip Manufacturer

Mon Oct 20 2025 09:12:30 GMT+0300 (Eastern European Summer Time)

In a strategic move to safeguard its semiconductor supply chain, the Dutch government has taken control of Nexperia, a chipmaker owned by Chinese firm Wingtech, citing governance concerns and the need to ensure emergency access to critical components.

The Dutch government has intervened in Nexperia, a Chinese-owned semiconductor company, to protect Europe's semiconductor supply amid rising tensions with China. Citing governance shortcomings and economic security risks, the government aims to maintain availability amidst global supply chain pressures. Wingtech, the parent company, responds by seeking legal remedies.

The Dutch government has taken control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, in a bid to safeguard the European supply of semiconductors for cars and other electronic goods and protect Europe's economic security.

The Hague said it took the decision due to serious governance shortcomings and to prevent the chips from becoming unavailable in an emergency.

Nexperia's owner Wingtech said on Monday that it would take actions to protect its rights and would seek government support.

The development threatens to raise tensions between the European Union and China, which have increased in recent months over trade and Beijing's relationship with Russia.

In December 2024, the US government placed Wingtech on its so-called entity list, identifying the company as a national security concern.

Under the regulations, US companies are barred from exporting American-made goods to businesses on the list unless they have special approval.

In the UK, Nexperia was forced to sell its silicon chip plant in Newport, after MPs and ministers expressed national security concerns. It currently owns a UK facility in Stockport.

The Dutch Economic Ministry stated it made the highly exceptional decision to invoke the Goods Availability Act over acute signals of serious governance shortcomings within Nexperia.

The ministry added that losing these capabilities could pose a risk to Dutch and European economic security.

The Goods Availability Act allows intervention under exceptional circumstances, including threats to the economic security of the country and ensuring the supply of critical goods.

The Dutch Minister of Economic Affairs could reverse or block Nexperia's decisions if deemed harmful. Nexperia’s operations are to continue as normal despite the intervention.

Shanghai-listed shares in Wingtech fell by 10% following the announcement. Nexperia maintains compliance with all laws, while Wingtech has stated its operations are continuing uninterrupted and it is in close communication with suppliers and customers. The situation is evolving as the company explores legal actions to respond to governmental oversight.