Netherlands intervenes in Chinese-owned chipmaker over security threat
(MENAFN) The Dutch government announced Sunday that it had taken what it described as a “highly exceptional” step to intervene in the operations of Nexperia, a semiconductor manufacturer owned by China’s Wingtech, over fears the company could pose a “risk to Dutch and European economic security.”
Wingtech, which owns the Netherlands-based firm, said on Monday that it would take measures to defend its interests and seek assistance from Chinese authorities in response to the move.
The decision has the potential to further strain relations between the European Union and China, which have already become tense amid disputes over trade policies and Beijing’s close ties with Russia.
Nexperia, which produces chips used in automobiles and consumer electronics, previously faced scrutiny in the United Kingdom. The company was compelled to sell its silicon wafer factory in Newport, Wales, following concerns raised by British lawmakers and government officials about national security. It still operates another site in Stockport, England.
According to the Dutch government, the Ministry of Economic Affairs invoked the Goods Availability Act after receiving “acute signals of serious governance shortcomings” within Nexperia. The legislation grants The Hague the authority to step in under extraordinary conditions that could threaten national economic stability or disrupt access to essential goods.
Officials said the intervention aims to ensure that Nexperia’s chips remain available during emergencies and to protect “the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities.” Despite the action, Nexperia’s production will be allowed to continue as usual for now.
The Dutch government has not provided specific details about what aspects of Nexperia’s operations it considers risky, according to reports.
Following the announcement, Wingtech’s shares on the Shanghai stock exchange dropped by 10% on Monday morning.
Wingtech is already among the Chinese companies placed on the U.S. government’s “entity list,” which restricts American firms from exporting products or technology to listed businesses without special approval.
In September, the U.S. Department of Commerce expanded those restrictions, adding any entity majority-owned by a Chinese company to the list, further tightening export controls.
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