Government Cites National Security and Corporate Governance Concerns
The Dutch government has stepped in to assume control of semiconductor company Nexperia, citing risks to national and economic security. Using emergency authority under the Goods Availability Act, the Ministry of Economic Affairs said the measure was necessary due to “serious governance issues” that could jeopardize critical technology operations in the country.
Nexperia, based in Nijmegen, has been under Chinese ownership since Wingtech Technology acquired it in 2019. The decision allows the Dutch minister to oversee and, if needed, veto company decisions that might endanger domestic or European interests, while day-to-day manufacturing continues without interruption.
Chinese Parent Company Protests, Market Reacts Sharply
Wingtech, which trades publicly in Shanghai, criticized the Netherlands’ action, accusing The Hague of politicizing an otherwise commercial matter. The company’s shares fell close to 10 percent following news of the intervention. Nexperia expressed disappointment, saying it has always complied with Dutch regulations and governance standards.
The chipmaker plays an essential role in Europe’s electronics and automotive supply chains, employing about 15,000 workers worldwide and several thousand within the Netherlands.
European Push to Secure Critical Technology Intensifies
This marks the first time the Dutch government has used the Goods Availability Act to directly intervene in a private company. The move reflects a broader European campaign to reduce reliance on foreign-controlled firms in strategic industries, particularly semiconductors.
Nexperia has drawn official scrutiny before: in 2022, the United Kingdom ordered it to divest its Newport Wafer Fab plant, citing similar national security concerns. Analysts say the Dutch decision underscores a growing resolve across Europe to safeguard technological independence amid intensifying global competition for advanced chip manufacturing.
