Dutch Government Nationalizes Chinese-Owned Chip Manufacturer to Avert Crisis

Mon Oct 13 2025 18:30:34 GMT+0300 (Eastern European Summer Time)

In a dramatic move, the Dutch government has taken control of Nexperia, a semiconductor firm owned by a Chinese company, to ensure the stability of Europe's critical chip supply amidst rising geopolitical tensions.

The Dutch government has nationalized Nexperia, a China-owned semiconductor company, to secure the European supply chain for semiconductors and counteract potential governance issues. This decision comes amid escalating tensions between the EU and China as the US has previously placed Nexperia's parent company on a national security watchlist. The Dutch Economic Ministry noted the need for strategic oversight to maintain economic security.

The Dutch government has taken control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, in a bid to safeguard the European supply of semiconductors for cars and other electronic goods and protect Europe's economic security.

The Hague said it took the decision due to serious governance shortcomings and to prevent the chips from becoming unavailable in an emergency.

Nexperia's owner Wingtech said on Monday that it would take actions to protect its rights and would seek government support.

The development threatens to raise tensions between the European Union and China, which have increased in recent months over trade and Beijing's relationship with Russia.

In December 2024, the US government placed Wingtech on its so-called entity list, identifying the company as a national security concern. Under the regulations, US companies are barred from exporting American-made goods to businesses on the list unless they have special approval.

In the UK, Nexperia was forced to sell its silicon chip plant in Newport after MPs and ministers expressed national security concerns. It currently owns a UK facility in Stockport.

The Dutch Economic Ministry stated that it made the highly exceptional decision to invoke the Goods Availability Act over acute signals of serious governance shortcomings within Nexperia.

These signals posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities, the ministry said in a statement.

The statement did not detail why it thought the firm's operations were risky. A spokesperson for the minister of economic affairs told the BBC that there was no further information to share.

'Mitigating Risk'

The Goods Availability Act is designed to allow The Hague to intervene in companies under exceptional circumstances, including threats to the country's economic security and ensuring the supply of critical goods.

Under the order, the Dutch Minister of Economic Affairs, Vincent Karremans, can reverse or block Nexperia's decisions if they pose potential harm to the company's interests, its future in the Netherlands or Europe, or to ensure supply remains available in an emergency.

While the company continues operations, the Dutch government says this measure aims to mitigate risks.

Shanghai-listed shares in Nexperia's parent company Wingtech fell by 10% on Monday morning. A spokesperson for Nexperia asserted compliance with all existing laws and regulations, export controls, and sanctions regimes.

In a statement in Mandarin, Wingtech claimed its operations continued without interruption, maintaining communication with suppliers and customers. However, the company's chairman, Zhang Xuezheng, was recently suspended from Nexperia's boards by an Amsterdam court order.

Wingtech also mentioned its engagement with lawyers regarding potential legal remedies.