Netherlands Seizes Control of Chinese-Owned Chipmaker Nexperia to Protect Tech Supply Chains
In a rare and extraordinary move, the Dutch government has taken control of Nexperia, a Netherlands-based semiconductor company owned by China’s Wingtech Technology, to safeguard Europe’s access to critical chip supplies amid escalating global trade tensions.
Nexperia is a key producer of high-volume semiconductors used across the automotive, consumer electronics, and industrial sectors, making it an essential link in Europe’s technological supply chain.
The Dutch Ministry of Economic Affairs confirmed it had invoked the Goods Availability Act in September, granting the state emergency powers to step in and ensure Nexperia’s chips remain available in Europe. Officials said the decision was necessary to prevent potential shortages in an emergency scenario, citing “acute governance concerns” within the company.
Following the announcement, Wingtech shares plunged 10% on the Shanghai Stock Exchange — their maximum daily limit.
National Security Concerns
The Hague stressed that the move was “highly exceptional,” warning that recent governance issues at Nexperia posed a threat to the continuity of crucial technological expertise in the Netherlands and across Europe. Officials highlighted the automotive industry as particularly vulnerable to disruptions.
Corporate filings show that Wingtech’s chairman, Zhang Xuezheng, has been suspended from his roles at Nexperia, while external managers have been appointed to oversee operations. The company has also been ordered to freeze changes to its assets, business, or personnel for up to a year.
Nexperia emphasized that its daily operations remain unaffected and reiterated that it complies with all laws, export controls, and sanctions.
Rising Tensions with China
The takeover adds a new flashpoint to EU-China trade tensions, following Beijing’s recent tightening of rare earth export restrictions, which threatens to impact Europe’s car industry.
The Netherlands has also faced pressure over restrictions on ASML’s exports of advanced semiconductor equipment to China, making the Nexperia move another sign of the country’s alignment with broader Western concerns about technology security and supply chain resilience.
Since acquiring Nexperia in 2019, Wingtech has defended its record, claiming it operates transparently and employs thousands across Europe. However, Dutch officials maintain that the intervention was critical to protecting national and economic security.
