In a dramatic escalation of Europe's efforts to safeguard its technological sovereignty, the Dutch government has effectively taken control of Nexperia, a leading semiconductor manufacturer headquartered in Nijmegen, Netherlands.
The move, invoked under the country's rarely used Goods Availability Act, grants the Minister of Economic Affairs unprecedented powers to block board decisions and protect critical assets.
Nexperia, which produces essential chips for the automotive industry and consumer electronics, has been owned by China's Wingtech Technology since 2019. This intervention highlights the deepening fissures in global supply chains, as the European Union increasingly aligns with U.S. restrictions on Chinese tech firms.
The Intervention: A Timeline of Swift Action
The Dutch government's involvement began quietly on September 30, 2025, when it issued an order freezing any changes to Nexperia's assets, intellectual property, or personnel for one year. Citing "serious governance shortcomings" and risks to European technological security, the measure aimed to prevent potential disruptions to chip supplies during emergencies. Production at the company's facilities - spanning the Netherlands, Germany, and the UK - continues uninterrupted, but the minister can now veto decisions deemed harmful to the firm's viability or Europe's interests.
The following day, October 1, three top executives with Dutch and German citizenship filed an emergency petition in Amsterdam's district court. The court acted decisively, suspending the powers of Nexperia's Chinese CEO, Zhang Xuezheng (also Wingtech's chairman), effective immediately.
By October 7, an independent director with a casting vote was appointed, and all but one of the company's shares were placed under temporary administration. The public announcement came on October 12, catching markets off guard.
Wingtech's shares on the Shanghai Stock Exchange plummeted 10% - the maximum daily limit - triggering a trading halt and erasing significant value from the parent company. The fallout continued, with shares dropping another 10% the next day, dragging down broader Chinese semiconductor indices.
This sequence of events marks what amounts to a de facto nationalization, though the Dutch emphasize it's temporary and non-ownership based. "This is a highly exceptional measure to mitigate risks," a ministry spokesperson stated, underscoring the goal of preserving Nexperia's role in Europe's supply chain.
Nexperia's Strategic Importance and Wingtech's Shadow
Founded in the 1920s as part of Philips' early semiconductor ventures, Nexperia has evolved into a powerhouse for discrete and power semiconductors - components vital for electric vehicles, AI applications, and everyday gadgets. Acquired by Wingtech for €3.6 billion in 2018 (from a consortium including Beijing's JAC Capital), the company employs thousands across Europe and generates billions in revenue. Its Nijmegen headquarters and global fabs make it a linchpin in the continent's tech ecosystem.
However, Wingtech's ties to Beijing have long raised red flags. In December 2024, the U.S. added the firm to its Entity List, accusing it of facilitating China's acquisition of sensitive semiconductor technologies. This blacklist imposes strict export controls, limiting access to U.S. tech. The recent U.S. expansion of rules to cover 50%-plus owned subsidiaries directly ensnared Nexperia, effective November 2025 with a grace period. Dutch officials insist their action is independent - "purely coincidental" in timing - but the alignment with Washington is unmistakable.
Prior incidents amplify the scrutiny: In 2022, the UK forced Nexperia to divest its Newport Wafer Fab stake over national security fears. The Netherlands itself blocked Nexperia's 2023 bid for Dutch startup Nowi. These moves reflect a broader Western strategy to curb technology transfers amid fears of intellectual property theft and supply chain vulnerabilities.
Reactions: Outrage from Beijing, Defiance from Wingtech
Wingtech decried the intervention as "politically motivated discrimination," vowing to pursue legal and diplomatic remedies while retaining economic ownership benefits.
In a Shanghai filing, the company warned of impacts on decision-making and efficiency, emphasizing its compliance with local laws since acquiring Nexperia. China's Semiconductor Industry Association echoed this, accusing The Hague of "abusing national security" pretexts.
The European side remains resolute. Dutch Economy Minister Vincent Karremans framed the step as essential for "ensuring supply availability in emergencies" and protecting know-how on European soil.
Analysts note no U.S. orchestration, but the timing - post-U.S. Entity List expansion - fuels speculation of quiet coordination in the transatlantic tech alliance.
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Broader Implications: Europe's Entry into the US-China Tech War
This "de facto seizure" of a firm operating in the Netherlands since 2017 signals the EU's hardening stance in the U.S.-China trade war. Semiconductors are the battleground: Chips underpin everything from EVs to defense systems, and Europe's dependence on Asian manufacturing exposes it to geopolitical shocks.
With U.S. tariffs looming and Beijing's export bans on rare earths, the continent is racing to bolster domestic production - via initiatives like the EU Chips Act.
Yet, the move risks retaliation. Heightened EU-China frictions, already strained by trade disputes and Russia's war in Ukraine, could disrupt €800 billion in annual bilateral trade.
For Nexperia, the uncertainty looms: Will Wingtech regain control, or will this pave the way for a European buyer? As one expert quipped, "It's not expropriation, but it feels like one to Beijing."
In the end, the Netherlands' bold gambit underscores a stark reality: In the race for tech dominance, neutrality is a luxury few can afford. As the EU joins the fray, the world watches - and the chips keep falling.
