Dutch Government Seizes Control of China-Owned Chipmaker Nexperia
In a landmark decision, the Dutch government has taken control of Chinese-owned semiconductor firm Nexperia, citing national security risks and potential technology transfer to its parent company, Wingtech. The intervention marks the first use of the Netherlands’ “Availability of Goods Act” and signals escalating tensions in the global semiconductor race.
Key Takeaways
- Dutch government gains veto power over Nexperia’s management decisions
- Wingtech CEO suspended from Nexperia board by Amsterdam court
- Move follows US blacklisting of Wingtech in December 2024
- Nexperia continues normal production despite government intervention
Unprecedented Government Intervention
The Dutch government invoked emergency powers to intervene in Nijmegen-based Nexperia, which manufactures chips for automotive and consumer electronics. While not taking ownership, authorities now hold authority to reverse or block management decisions deemed harmful to national interests.
The decision triggered a 10% drop in Wingtech’s Shanghai-listed shares on Monday, reflecting investor concerns about the Chinese company’s overseas operations.
Wingtech Alleges Geopolitical Bias
Wingtech condemned the move as “excessive interference driven by geopolitical bias,” claiming non-Chinese executives attempted a “cloaked power grab” through legal proceedings. The company stated it’s consulting lawyers and seeking government support to protect its interests.
An Amsterdam commercial court ruling dated October 7 revealed the court had suspended Wingtech CEO Zhang Xuezheng from his executive director position at Nexperia on October 1, citing “well founded reasons to doubt” the company’s management compliance with Dutch law.
“The loss of these capabilities could pose a risk to Dutch and European economic security,” – Dutch government statement
Court-Appointed Leadership Takes Charge
The court appointed Dutch businessman Guido Dierick as Zhang’s replacement with deciding vote authority and transferred control of nearly all Nexperia shares to a Dutch lawyer for management. Both the Dutch state and company’s labor council supported these measures.
Nexperia, acquired by Wingtech for $3.63 billion in 2018, maintains it complies with all relevant laws and regulations. The company develops both basic chips and advanced “wide gap” semiconductors used in electric vehicles, chargers, and AI data centers.
Broader Western Scrutiny of Chinese Tech
The Dutch action follows Wingtech’s placement on the US “entity list” in December 2024 for allegedly aiding China’s acquisition of sensitive semiconductor capabilities. A Dutch Economic Affairs Ministry spokesperson denied US involvement in the Nexperia decision, calling the timing “purely coincidental.”
This isn’t Wingtech’s first conflict with Western governments. Britain previously ordered the company to divest a Newport facility, while Dutch authorities scrutinized Nexperia’s 2023 purchase of startup Nowi. Wingtech’s filing with the Shanghai exchange confirmed the Dutch order temporarily restricts its control over Nexperia, affecting decision-making and operational efficiency.
