Dutch Government Seizes Control of Chinese-Owned Chipmaker Nexperia

The Dutch government has stepped in to take control of Chinese-owned chipmaker Nexperia, citing serious risks to economic and technological security. The company, headquartered in the Netherlands and owned by China’s Wingtech, produces key semiconductors used in cars and electronics. The Dutch Economic Ministry announced it had activated rarely used emergency powers under the Goods Availability Act, giving it the authority to override Nexperia’s management decisions if they are deemed harmful to the Netherlands or Europe.

While the Dutch government isn’t taking over ownership, the move gives them veto power over decisions that could affect the availability of critical tech in times of crisis. Production will continue as normal for now, but Wingtech has confirmed it has lost control over parts of Nexperia’s operations due to court rulings and the ministerial order.

Wingtech's chairman Zhang Xuezheng was suspended from Nexperia’s boards earlier this month, and an independent, non-Chinese appointee is expected to hold a deciding vote in management decisions.

Officials say the intervention followed “acute signals of serious governance shortcomings,” raising fears that sensitive technology could become inaccessible in an emergency or fall into the wrong hands. The government said the situation posed a risk to “the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities.”

The statement didn’t go into detail, but the concern appears to stem from Nexperia’s strategic importance in Europe’s supply chain — especially in the automotive and AI sectors — as well as its links to Wingtech, which has faced increasing international scrutiny.

In December 2024, Wingtech was placed on the U.S. government’s entity list, marking it as a national security threat. The listing means American companies need special licenses to do business with it. The U.S. cited Wingtech’s involvement in China’s attempts to acquire sensitive semiconductor technology. Nexperia had previously insisted it operates at “arm’s length” from its Chinese parent.

Wingtech, which bought Nexperia in 2018 for $3.63 billion, called the Dutch intervention “excessive interference driven by geopolitical bias.” In a statement to the Shanghai Stock Exchange, the company also accused non-Chinese Nexperia executives of attempting a “cloaked power grab” through legal means. It said it was exploring legal remedies and seeking government support.

The move comes at a time of deepening global tech tensions, with the U.S., EU, and China all clashing over access to semiconductors, critical minerals, and intellectual property. Just last week, China tightened its export rules on rare earth materials — a decision that could impact Europe’s automotive sector.

Nexperia has already faced scrutiny in the UK, where it was forced to sell a major chip facility in Newport due to national security concerns. It still owns a site in Stockport, and its footprint spans the Netherlands, Germany, and Britain, employing thousands of local staff.

A spokesperson for Nexperia said the company “complies with all existing laws and regulations, export controls and sanctions regimes,” but declined to comment further.

Despite the growing geopolitical firestorm, the Dutch government insists the move was not coordinated with the U.S. and was triggered by domestic concerns over governance and supply security. A ministry spokesperson called the timing “purely coincidental.”

Shares in Wingtech tumbled 10% — the daily limit — following the announcement, as markets reacted to the latest blow to China’s ambitions in Europe’s semiconductor industry.

With legal battles looming and international tensions rising, Nexperia's future — and Europe's access to key chip technology — now hangs in the balance.