Netherlands cracks down on China-owned chipmaker Nexperia
The Dutch government has announced an unprecedented intervention at Chinese-owned semiconductor firm Nexperia, citing potential risks to Dutch and European economic security.
In a statement released Sunday, the Ministry of Economic Affairs said it invoked the Goods Availability Act following “acute signals of serious governance shortcomings” within Nexperia. The law enables government action under exceptional circumstances to safeguard national interests and ensure the supply of critical goods, News.Az reports, citing BBC.
The intervention aims to prevent any scenario in which Nexperia’s chips might become unavailable in an emergency, the government said, adding that the company’s production will continue as normal.
Officials warned that Nexperia’s operations pose a threat to “the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities.”
Nexperia, headquartered in the Netherlands and operating globally, including factories in the UK, is owned by China’s Wingtech Technology. The parent firm said Monday it would “take actions to protect its rights” and seek government support in response to the Dutch move.
Wingtech’s Shanghai-listed shares fell 10% following the announcement.
The case is expected to further strain relations between the European Union and China, already tense over trade disputes and Beijing’s ties with Moscow.
Nexperia previously faced scrutiny in the UK, where it was forced to sell its Newport, Wales chip plant over national security concerns, though it still operates a facility in Stockport, England.
Wingtech is also listed on the US Commerce Department’s entity list, restricting American firms from supplying it without special permission. The US recently expanded those rules to include any company majority-owned by a Chinese entity.
Nexperia produces semiconductors used in automotive and consumer electronics.
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