Netherlands Seizes Control of Chinese-Owned Chipmaker Nexperia Over Security Risks

The Dutch government has taken control of Nexperia, a Chinese-owned semiconductor company, citing national security and governance concerns. The move marks one of Europe’s strongest interventions yet in the tech sector amid rising tensions with China.

Authorities used the Goods Availability Act, a law that allows intervention in companies producing essential goods. This gives officials the power to block management decisions and ensure the firm operates under Dutch oversight.

Nexperia, owned by China’s Wingtech Technology, plays a key role in Europe’s chip supply chain. It manufactures semiconductors for vehicles, smartphones, and industrial equipment. The government said production will continue, but critical business decisions will now require state approval.

A Dutch court also suspended Nexperia’s Chinese chairman, Zhang Xuezheng, and appointed an independent board member with a deciding vote. Following the announcement, Wingtech’s shares dropped nearly 10% on the Shanghai exchange.

Critics in China called the decision “politically driven,” arguing it undermines free market principles. However, Dutch officials said the move is a targeted measure to protect critical technology, not a blanket restriction on foreign investors.

The intervention reflects Europe’s growing caution toward Chinese influence in advanced manufacturing. Similar actions have been seen in Germany, the UK, and the US, where governments are tightening control over strategic tech industries.

As global chip competition intensifies, experts say the Netherlands is signaling that economic security is now as vital as innovation in shaping the future of the semiconductor market.