Dutch Government Takes Over Chinese-Owned Chip Manufacturer to Secure Semiconductor Supply

Tue Oct 21 2025 22:52:44 GMT+0300 (Eastern European Summer Time)

In a strategic move to enhance European semiconductor security, the Dutch government has assumed control of Nexperia, a Chinese-owned chipmaker, citing serious governance issues and the need to protect supply chains.

The Dutch government's intervention in Nexperia, a chip manufacturer owned by China's Wingtech, aims to secure the European semiconductor supply amidst growing economic tensions with China. The move, prompted by governance concerns, allows the Dutch authorities to mitigate risks related to national security and safeguard critical technological capabilities in Europe.

The Dutch government has taken control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, in a bid to safeguard the European supply of semiconductors for cars and other electronic goods and protect Europe's economic security.

The Hague said it took the decision due to 'serious governance shortcomings' and to prevent the chips from becoming unavailable in an emergency.

Nexperia's owner Wingtech announced that it would take actions to protect its rights and seek government support.

This development threatens to escalate tensions between the European Union and China, which have intensified recently over trade issues and Beijing's ties with Russia.

In December 2024, the US government listed Wingtech on its 'entity list', identifying it as a national security concern, restricting US companies from engaging in exports to it without specific authorization.

In the UK, Nexperia was forced to divest its silicon chip plant in Newport after national security concerns were raised by MPs and ministers; it currently owns a facility in Stockport.

The Dutch Economic Ministry described its decision to invoke the Goods Availability Act as 'highly exceptional', citing acute signals of governance shortcomings within Nexperia. It stressed that these issues posed a threat to the continuity of crucial technological knowledge in the Netherlands and Europe.

'Losing these capabilities could pose risks to Dutch and European economic security,' the ministry stated.

The Goods Availability Act permits Dutch authorities to intervene in companies during extraordinary circumstances to ensure economic security and critical goods supply. The order allows the Minister of Economic Affairs to counter or stop Nexperia's decisions if they're potentially harmful to the company's interests or to emergency supplies.

The ministry emphasized that Nexperia's production can continue normally under this measure, which is intended to mitigate risk.

Shares of Wingtech plummeted by 10% following the government's announcement. A Nexperia spokesperson maintained that the company complies with all regulations and export controls, without further commentary.

Wingtech reassured stakeholders that its operations remain uninterrupted and that it maintains communication with its suppliers and customers. The company's chairman was recently suspended from Nexperia's boards by an Amsterdam court order, and it is exploring potential legal remedies.