Netherlands Intervenes at China’s Nexperia Chipmaker Citing Economic Security Risk

THE HAGUE: The Dutch government announced Sunday a “highly exceptional” decision to intervene at the Chinese-owned semiconductor firm Nexperia, citing a potential “risk to Dutch and European economic security.”

The move immediately escalated tensions between the European Union and China, which have been growing in recent months over trade disputes and geopolitical alignments.

Nexperia’s owner, the Shanghai-listed company Wingtech, responded on Monday by stating it would take actions to protect its rights and would seek support from the government. Wingtech’s shares promptly fell by 10% on Monday morning following the announcement.

The intervention was initiated by the Dutch economic affairs ministry, which invoked the nation’s Goods Availability Act over “acute signals of serious governance shortcomings” within Nexperia.

This law grants The Hague the power to intervene in companies under exceptional circumstances, specifically those posing threats to the country’s economic security or vital supply of critical goods.

The government stated the intervention is designed to prevent a situation where Nexperia’s crucial chips—used extensively in cars and consumer electronics—could become unavailable in an emergency. Furthermore, the government warned that the company’s operations posed a “threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities.”

Despite the intervention, the government confirmed that Nexperia’s production can continue as normal.

While the decision highlights deep national security concerns, the government statement did not offer specific details on why Nexperia’s operations were deemed risky. A spokesperson for the minister of economic affairs told the BBC that no further information would be shared publicly at this time. The BBC has reached out to the Chinese embassies in the Netherlands and Brussels for comment.

This is not the first time Nexperia, which currently operates a UK facility in Stockport, has faced security scrutiny. The company was previously forced to sell its silicon chip plant in Newport, Wales, following national security concerns raised by UK Members of Parliament and ministers.

The move comes against a backdrop of increasing scrutiny on Chinese tech firms globally. Nexperia’s parent company, Wingtech, is on the US’s so-called “entity list.” This designation bars US companies from exporting American-made goods to the listed businesses without special government approval. The US Commerce Department further tightened these regulations in September, adding any company that is majority-owned by a Chinese firm to the list.