Netherlands intervenes in China-owned chip firm amid security concerns
The Netherlands said on Sunday that it had taken the “highly exceptional” decision to intervene at Nexperia over a potential “risk to Dutch and European economic security.”
The Dutch government's decision to intervene in Chinese-owned chipmaker Nexperia is threatening to deepen tensions between the European Union and China, which have increased in recent months over trade and Beijing's relationship with Russia.
The Netherlands said on Sunday that it had taken the "highly exceptional" decision to intervene at Nexperia over a potential "risk to Dutch and European economic security."
The intervention, carried out by the Ministry of Economic Affairs under the Goods Availability Act, follows what The Hague described as "acute signals of serious governance shortcomings" within the Netherlands-based firm. The law allows the government to step in during exceptional circumstances, including threats to national economic security or the supply of critical goods, reports the BBC.
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The government said the move was intended to "prevent a potential situation in which Nexperia's chips would become unavailable in an emergency." It added that Nexperia's operations posed a "threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities."
Nexperia, which makes semiconductors used in cars and consumer electronics, will be allowed to continue production during the intervention, the government said.
The Netherlands-based firm is owned by Wingtech, a Shanghai-listed company that is among the firms the United States has placed on its so-called "entity list." The designation bars US companies from exporting American-made goods to it without special approval.
Wingtech said on Monday that it will take actions to protect its rights and will seek government support. Shares in the company fell by 10% following the announcement.
The case adds to growing geopolitical friction surrounding the technology sector, as Western nations move to reduce reliance on Chinese firms for critical components.
Nexperia has faced international scrutiny before. In 2022, the company was ordered by the UK government to sell its majority stake in the Newport Wafer Fab plant in Wales, following national security concerns raised by British ministers and lawmakers.
