The Dutch government has announced a rare and “highly exceptional” intervention in the operations of Nexperia, a Chinese-owned semiconductor manufacturer, citing risks to both Dutch and European economic security.
Nexperia, which is based in the Netherlands and operates globally including in the United Kingdom is owned by China’s Wingtech Technology. The Dutch Ministry of Economic Affairs said it invoked its Goods Availability Act following “acute signals of serious governance shortcomings” within the firm.
The government move aims to safeguard the continuity of semiconductor supply and protect “crucial technological knowledge and capabilities” on European soil. Despite the intervention, authorities confirmed that Nexperia’s production can continue as normal.
Nexperia, which produces semiconductors used in automobiles and consumer electronics, has already faced scrutiny in the UK. In 2022, it was forced to sell its Newport Wafer Fab plant in Wales after lawmakers raised national security concerns. It continues to operate a facility in Stockport, England.
The Dutch government’s statement did not specify exact details of the potential security risks, but analysts believe the decision reflects growing European caution toward Chinese involvement in critical industries.
In response, Wingtech said it would take steps to “protect its rights” and seek government support, calling the Dutch move “unjustified.”
The development is expected to heighten tensions between the European Union and China, whose relationship has already been strained by trade disputes and Beijing’s ties with Moscow.
Shares of Wingtech, which is listed in Shanghai, fell by 10% on Monday following the announcement. The company is also among those placed on the U.S. Commerce Department’s entity list, restricting exports of American-made goods to it without special permission.
Washington recently tightened those rules, extending them to include any company majority-owned by a Chinese parent. Analysts say the Dutch decision signals that Europe may now align more closely with U.S. restrictions on Chinese tech firms.
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