Government Moves to Safeguard National Interests and Technology Access
The Dutch government has taken command of chip producer Nexperia, invoking emergency measures under the Goods Availability Act to secure what it called vital national technology. Authorities said the decision followed an investigation that uncovered “major governance deficiencies” posing potential risks to the country’s economic and security interests.
Nexperia, based in the city of Nijmegen, became a subsidiary of China’s Wingtech Technology in 2019. Under the new arrangement, the Minister of Economic Affairs will have the authority to oversee or nullify management decisions deemed harmful to Dutch or European strategic priorities, though production will continue as normal.
Chinese Parent Firm Protests as Stock Price Drops
Wingtech, a publicly traded company in Shanghai, denounced the move, claiming the Netherlands was politicizing business activity. Its shares fell close to 10 percent shortly after the announcement. Nexperia expressed regret over the decision, saying it operates transparently and in full compliance with domestic and EU regulations.
The chipmaker is an important supplier to global car manufacturers and electronics producers, employing about 15,000 people worldwide, with several thousand based in the Netherlands.
Part of Europe’s Broader Strategy for Technological Independence
The intervention marks the first time The Hague has activated the Goods Availability Act to assume control of a private enterprise. Analysts view the measure as another sign of Europe’s determination to reduce dependence on foreign-controlled technology firms.
Nexperia has faced similar challenges before. In 2022, British authorities ordered the sale of its Newport Wafer Fab facility over national security concerns. The Dutch move adds to a growing list of European efforts to protect semiconductor capabilities as global competition for chip production intensifies.
