Why did the Dutch government take control of Chinese-owned chipmaker Nexperia? | EU News

The Dutch government has stepped in to effectively take control of the technology group Nexperia, which is owned by the Chinese group Wingtech Technology.

The decision comes amid a growing dispute between China and the West over the development of technology such as computer chips and semiconductors, which are essential components for manufacturing artificial intelligence technology.

Here’s more about what the Dutch government announced, why and what happens next.

What did the Dutch government announce?

In a statement issued on Sunday, the Dutch Ministry of Economic Affairs said it had invoked the “extremely exceptional” Availability of Goods Act to intervene and take control of Nexperia on September 30.

The Availability of Goods Act allows the Netherlands to intervene in privately owned companies in exceptional circumstances, such as if the government perceives a threat to the country’s economic security or if it is necessary to ensure that vital goods remain available.

Why did the Dutch government take this step?

The move followed an emergency hearing held by the Dutch Enterprise Chamber on October 7, which concluded that there may be “good reasons to doubt the sound management at Nexperia under the leadership of former CEO Zhang Xuezheng,” a statement from the company said.

The Dutch Enterprise Chamber is a special section of the Court of Appeal in Amsterdam, which hears company law cases and other matters that can have significant social or financial consequences.

The government said in its statement that the intervention was carried out “due to serious administrative shortcomings” in Nexperia, which “posed a threat to the continuity and protection of important technological know-how and capabilities on Dutch and European territory.”

It claimed that the intervention would ensure Neexperia’s finished and semi-finished products remained available in the event of an emergency.

The ministry added that “the loss of these capabilities may pose a threat to Dutch and European economic security.”

After this intervention, the company said: “The company’s regular production process can continue.”

However, it added: “Based on the order, decisions within the company could be blocked or reversed if they are (likely) to harm the interests of the company, its future as a Dutch and European company, and/or the preservation of this crucial value chain for Europe.”

The statement said that “interested parties” can appeal the decision to court.

What is Nexperia and how has it responded to government action?

Nexperia is a global semiconductor manufacturer headquartered in Nijmegen, Netherlands. It emerged from the Philips Electronics Group’s purchase of London-based Mullard Radio and Hamburg-based Valvo in the 1920s, eventually leading to the formation of Philips’ semiconductor operation. In 2006, Philips spun off its semiconductor division, which later became NXP Semiconductors, and was later sold to a consortium of investors led by Beijing Jianguang Asset Management (JAC Capital). Wingtech acquired Nexperia from this consortium for $3.63 billion in 2018.

According to its website, Nexperia employs 12,500 people in Europe, Asia and the United States.

Nexperia’s manufacturing site spans over 80,000 square meters (861,000 square feet) and has the capacity to build more than 50 billion components annually. It also has sales offices and R&D sites in China.

Nexperia announced on Tuesday that it has suspended Zhang, founder of Wingtech, from serving as a director and removed him as CEO. It appointed Stegan Tilger, Chief Financial Officer (CFO), as interim CEO.

“Due to the same serious administrative deficiencies, the Dutch Ministry of Economic Affairs notes that Nexperia’s operations in Europe are being compromised in an unacceptable way. This situation has raised broader concerns in the Dutch government about the availability of semiconductor products vital to European industry,” Nexperia’s statement said.

“The combination of Zhang Xuezheng’s behavior as CEO and (indirect) shareholder, as well as concerns about the availability of semiconductor products in the Netherlands and Europe, ultimately led the Dutch government to intervene with an extraordinary emergency order on the basis of the Availability of Goods Act.”

The government order also prohibits Nexperia from transferring company assets, firing current executives or making important decisions without explicit government approval for one year, the statement added.

Nexperia said it is confident that its daily operations will continue as usual.

What led to all this?

China on October 9 Tightening export controls For important rare earth minerals, citing national security interests. Foreign companies must now obtain Beijing’s approval before they can export the rare earth minerals mentioned or any products containing them. Exporters must tell the government how the products are used.

The United States is a major consumer of Chinese rare earth minerals, which are critical to its defense industry. After China announced new export restrictions, US President Donald Trump responded Threatening to impose a new 100 percent trade tariff On China.

Besides being used in the manufacture of smartphones, electric cars and weapons, rare earth metals are also used in the manufacture of semiconductors, which are essential for the development of artificial intelligence technology.

In recent years, the United States and its Western allies in Europe have passed regulations restricting China’s access to Western semiconductor technology, fearing that China could reverse engineer and manufacture the technology, getting ahead of the technology race.

In 2022, former Democratic US President Joe Biden Restricting China’s access American Semiconductor. The new rules expanded restrictions on chipmaking tools sold to industries that support the semiconductor supply chain. They have denied these industries access to American technical expertise, as well as key components needed to build the machines that produce microchips.

The United States tightened these restrictions again in October 2023, and again in December 2024.

On September 29, 2025, the US Bureau of Industry and Security expanded US export control restrictions to include all groups that are at least 50 percent owned by one or more entities on the US Entity List, a list of foreign organizations and companies believed to be engaging in, or at a significant risk of engaging in, activities inconsistent with US national security or foreign policy interests. These entities are subject to sanctions, export restrictions, or licensing requirements. While Nexperia itself is not on the list, Wingtech was added in December 2024.

Then, on October 4, China’s Ministry of Commerce announced export controls prohibiting Nexperia China and its subcontractors from exporting certain finished components and subassemblies made in China.

“Nexperia is actively working with the Chinese authorities to obtain an exemption from these restrictions, and has deployed all available resources to this end,” the Nexperia statement said.

“Although Nexperia has made adequate preparations to ensure business continuity – and since the BIS rule stipulates a 60-day grace period – we are confident that a solution will be found,” Nexperia said in its statement on Tuesday.

To further complicate all of this, earlier in the year, US President Donald Trump imposed 145% tariffs on Chinese imports to the US. China responded by imposing 125% tariffs on US goods. Both countries then reduced tariffs for 90 days maybe To allow business talks. In August, the two sides agreed to another 90-day truce, with the latest round of talks between US and Chinese officials taking place in Spain last month.

But the United States has also imposed restrictions on the sale of most Chinese cars in the United States. These include high tariffs on Chinese-made electric cars.

In addition to the standard 10% car import duty, the European Union announced last year that it would impose a range of additional tariffs on electric cars, from 7.8% on Tesla cars to 35.3% on Chinese state-owned SAIC (Shanghai Automobile Industry Corporation) cars.

How did Wingtech and China respond to the Dutch government’s announcement?

Wingtech issued a statement on social media saying it “strongly opposes the politicization of commercial matters.”

In this publication, the Dutch government’s move was considered “an excessive intervention based on geopolitical bias rather than a fact-based risk assessment” that is based on “a baseless pretext of national security.”

Wingtech shares have fallen 10 percent on the Shanghai Stock Exchange since the announcement. As a result, Wingtech was forced to explain the situation to the exchange, saying that the Dutch government’s decision “temporarily restricts” its control over Nexperia.

Lin Jian, a Chinese Foreign Ministry spokesman, said Monday that Beijing “consistently opposes excessive national security notions and discriminatory practices targeting companies from certain countries.”

He added: “Relevant countries must sincerely adhere to market principles and avoid politicizing economic and trade issues.”

How did others react?

The EU is coordinating closely with Dutch officials and will now work with the Netherlands to determine what to do next to protect Europe’s important technical capabilities, according to European Commission spokesman Olof Gehl.