THE HAGUE — The Dutch government has moved to take operational control of Nexperia, the Nijmegen-based chipmaker owned by China’s Wingtech Technology. Officials used a rarely invoked Cold War-era statute to act, citing national and European security concerns.
The late Sunday announcement places the Netherlands at the centre of U.S.-China tech tensions. Ministers said the decision protects “crucial technological knowledge” that supports Europe’s car and electronics sectors. Beijing reacted with anger, and Wingtech called the step a “politicized coup”.
Nexperia makes diodes, transistors and advanced wide bandgap chips used in electric vehicles, AI data centres and consumer tech. The firm began life as a Philips Semiconductors spin-off around twenty years ago. Wingtech, listed in Shanghai, bought Nexperia in 2019 for about €2 billion, or $2.3 billion.
The business has become a key supplier in Europe’s chip chain, producing billions of components each year. It employs more than 12,500 people worldwide, with large teams in the Netherlands, Germany and the UK. For many in the industry, Nexperia is not just a plant. It is seen as a strategic asset in a world built on silicon.
Goods Availability Act
The state’s intervention relies on the “Goods Availability Act” (Wet beschikbaarheid goederen), a 1990s law intended to keep essential goods flowing during crises. Officials called the move “highly exceptional”. Economic Affairs Minister Dirk Belinfante said the ministry found “recent and acute signals of serious governance shortcomings” at Nexperia from 30 September.
The ministry did not give details. It warned that the “continuity and safeguarding” of proprietary technology within Europe was at risk, with possible leakage to Wingtech’s China headquarters. “Losing these capabilities could pose a risk to Dutch and European economic security,” the ministry said. It flagged the automotive sector as particularly exposed, since its chips power braking, safety and infotainment systems.
This action fits a broader pattern of Western caution over Chinese stakes in strategic tech. In 2022, the UK ordered Nexperia to sell 86 percent of Newport Wafer Fab after a security review. In December, the U.S. Commerce Department added Wingtech to its entity list, citing its support for China’s drive for sensitive semiconductor know-how.
Dutch authorities approved Nexperia’s purchase of Nowi in 2023 only after close scrutiny. With chip shortages still felt and talk of tariffs rising in the United States, including proposals for 100 percent duties on Chinese goods, The Hague appears unwilling to risk a loss of control over a key chip asset.
Nexperia Gets Court-Appointed Custodian
The takeover mechanics are precise. An Amsterdam commercial court, acting on a petition from a senior Nexperia executive, suspended Wingtech chief Zhang Xuezheng from board duties on 1 October. The court noted “well-founded doubts” about compliance with Dutch corporate law. All but one Nexperia share is now managed by a court-appointed custodian.
For up to a year, the government holds veto rights over asset sales, staffing changes or shifts in operations. Production continues as normal, with no plant closures or layoffs announced. Any step that could move sensitive technology to China can be stopped or reversed. “This isn’t about ownership; it’s about stewardship,” a ministry spokesperson said, stressing the law’s roots in supply protection during crises.
Beijing’s reply was fast and fierce. Wingtech posted on WeChat, then deleted, that the Dutch move was an “excessive intervention driven by geopolitical bias, not fact-based risk assessment.” The company promised to pursue “legal remedies” and to seek help from “relevant government departments.”
Wingtech’s shares fell 10 percent, the daily limit in Shanghai, wiping billions from its market value and unsettling China’s tech sector. Nexperia struck a calmer note, saying it “complies with all laws, export controls, and sanctions” and keeps “regular contact” with authorities.
Chinese state media, including Global Times, framed the step as “hegemonic overreach” by Europe aligned with Washington. Commentators warned of possible curbs on rare earth exports, which are essential to chipmaking. China tightened restrictions on some of these materials last Thursday, which analysts linked to escalating trade disputes.
Chinese Management Discharged
The political shockwaves are wide. EU lawmakers working on the bloc’s Chips Act, a €43 billion plan to grow local production, called the Dutch action a “wake-up call.” Dutch MEP Bart Groothuis wrote that “Chinese management discharged— direction back where it belongs, at the company.”
Critics voiced concern about investor confidence. Dutch MEP Sophie in ’t Veld warned that such steps could chill foreign capital and draw politics into commerce. Economists watched for supply chain stress. Major carmakers, including Volkswagen and Stellantis, rely on Nexperia’s steady output. Any long hold-up could repeat the chip shortage that stalled factories in 2021.
The timing has its own weight. The Netherlands hosts ASML, the sole supplier of extreme ultraviolet lithography machines. The country has already limited some exports to China after pressure from Washington.
A ministry source said the timing was “purely coincidental” and not linked to recent U.S. entity list changes. Doubts remain in Brussels. As one EU diplomat said, “In the chip wars, coincidence is just another word for coordination.”
For Nexperia’s 4,000 Dutch staff, daily work goes on, but nerves are frayed. “We’re focused on innovation, not intrigue,” said a supervisor in Nijmegen, speaking off the record. Wingtech still benefits from Nexperia’s profits, but its control is sharply reduced.
Legal battles are likely. The company can appeal in Dutch courts, and could take matters to EU bodies or the WTO.
The episode lays bare a simple truth. In semiconductors, where TSMC leads advanced nodes and China seeks self-sufficiency, no deal is free of politics. The Dutch move may protect Europe’s silicon strength today.
The price could be higher trade friction tomorrow. As Belinfante prepares to brief EU partners, one thing is plain. The chips are down, and the stakes are high.
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