Netherlands seizes control of Chinese-owned chipmaker over security concerns
The Dutch government’s takeover of Nexperia marks a new phase in Europe’s growing scrutiny of Chinese-owned tech companies.
Things are heating up between China and Europe again, this time over semiconductors.
Recent reports reveal that the Dutch government has effectively taken control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, by invoking a Cold War-era emergency law.
It’s the first time this law, known as the Goods Availability Act, has ever been used, marking an extraordinary step in Europe’s ongoing efforts to safeguard its technology and chip supply chains.
Emmanuel Oyedeji
The move gives the Dutch government sweeping powers to oversee, block, or reverse Nexperia’s business decisions if they’re seen as harmful to national or economic security. The goal, officials say, is to ensure Europe retains uninterrupted access to Nexperia’s chips, the kind used in cars and consumer electronics, at a time when global semiconductor supply remains deeply entangled in geopolitics.
Now, here’s the interesting part: while Nexperia is owned by China’s Wingtech Technology, it’s also headquartered and legally registered in the Netherlands. That means it operates under Dutch law. So even though Wingtech controls it on paper, The Hague, where the Dutch parliament resides, still has full authority to intervene in its operations when national interests are at stake. In other words, ownership may be Chinese, but the jurisdiction is Dutch.
According to the government, the decision was prompted by what it called “serious governance shortcomings” at Nexperia, warning that these issues posed a threat to the continuity of Dutch and European chipmaking knowledge. Officials also expressed concern that Nexperia’s leadership might make decisions that prioritise China’s interests over Europe’s, especially in a crisis where chip supplies could become leverage in geopolitical disputes.
But that’s not all. You see, this didn’t happen in isolation. Just days before the government’s intervention, a Dutch court suspended Wingtech’s CEO, Zhang Xuezheng, from his executive role at Nexperia, citing “well-founded reasons to doubt proper management.” The court even went as far as to transfer control of nearly all Nexperia shares to a Dutch lawyer and appoint a new interim director to oversee operations. This effectively cut off the Chinese parent company’s direct control of its own subsidiary, a stunning legal move that coincided almost perfectly with the government’s takeover.
As expected, China and Wingtech have both pushed back hard. Beijing called the decision an example of “discriminatory treatment” and accused the Netherlands of stretching the concept of national security. Wingtech’s shares plunged 10% on the Shanghai stock exchange, and the company said it’s exploring legal and diplomatic channels to challenge the move. It also claimed the Dutch actions were “geopolitically biased” and warned that such interference could damage global semiconductor cooperation.
The situation puts even more strain on EU–China relations, which have already been tense due to trade investigations, new export controls, and Beijing’s ties to Moscow. For the Netherlands, it’s also a delicate balancing act. The country is home to ASML, the world’s only maker of advanced chip lithography machines, and a key player in the U.S.-China chip rivalry. Analysts say Beijing could retaliate by targeting European tech firms or tightening exports of rare earth materials vital for chip production.
For now, Nexperia’s production continues as normal, but the government’s oversight could last up to a year. What happens after that depends on whether The Hague believes the company can operate safely without Chinese influence. Either way, this marks a new phase in Europe’s approach to tech sovereignty, one where economic security is starting to outweigh free-market principles.
Emmanuel Oyedeji
