EKS- this happened last week: In rare move, Dutch government takes control of China-owned chipmaker Nexperia
Toby SterlingOctober 13, 202512:48 PM PDTUpdated October 13, 2025
An employee works with a wafer in a production line of Dutch semiconductor company Nexperia, in Hamburg, Germany, June 27, 2024. REUTERS/Fabian Bimmer Purchase Licensing Rights
AMSTERDAM, Oct 13 (Reuters) - The Dutch government has taken control of Chinese-owned computer chipmaker Nexperia, ratcheting up tensions with Beijing as a global fight brews over technology intellectual property, especially around semiconductors.
The government said late on Sunday that it has intervened in Nijmegen-headquartered Nexperia, which manufactures chips for cars and consumer electronics. It cited worries about the possible transfer of technology to Nexperia's Chinese parent company, Wingtech (600745.SS).
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The Hague invoked never-before-used powers under a Dutch law known as the "Availability of Goods Act." The decision led to a 10% fall in Wingtech's shares in Shanghai on Monday.
The Dutch government will not take ownership of Nexperia, but it will now have the power to reverse or block management decisions it considers harmful. The company's regular production is continuing.
WINGTECH SAYS DECISION DRIVEN BY 'GEOPOLITICAL BIAS'
U.S. President Donald Trumpis ratcheting up pressure on Chinese tech firms as part of a broader trade war that saw him threaten 100% tariffs on China's exports last week.
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The U.S. and the Netherlands typically cooperate closely on computer chip industry export controls. A Dutch Economic Affairs Ministry spokesperson, however, said there was no U.S. involvement in its decision regarding Nexperia and the timing was "purely coincidental".
Washington last month expanded a list of blacklisted firms seen as threats to national security to include subsidiaries.
Wingtech had already been placed on the United States' "entity list" in December 2024 for its alleged role "in aiding China's government's efforts to acquire entities with sensitive semiconductor manufacturing capability."
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Nexperia, which is 100%-owned by Wingtech, said at the time that it would comply with the U.S. rules, though it said its operations were kept at arm's length from its Chinese parent.
Wingtech called the Dutch government's intervention in Nexperia, once part of Dutch electronics group Philips, "excessive interference driven by geopolitical bias".
Wingtech also alleged that non-Chinese Nexperia executives had tried to forcibly alter the company's equity structure through legal proceedings in a "cloaked power grab" on the company.
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A copy of an Amsterdam commercial court ruling dated October 7 and seen by Reuters showed that the court decided on October 1 to suspend Wingtech CEO Zhang Xuezheng from his position as executive director at Nexperia after finding "well founded reasons to doubt" the company was pursuing correct management policy or actions under Dutch civil law. It appointed Dutch businessman Guido Dierick to take Zhang's position with a "deciding vote", and transferred control of almost all of Nexperia's shares to a Dutch lawyer for management. The Dutch state and the company's labour council had supported the moves, the document showed.
Wingtech could not immediately be reached for comment on Monday outside of normal business hours in China.
Wingtech said in a statement on Sunday that it was consulting with lawyers and seeking government supportto "protect the legitimate rights and interests of the company".
Nexperia, which Wingtech bought for $3.63 billion in 2018, said it complied with all relevant laws and regulations.
COURT ORDERED WINGTECH CHAIR SUSPENDED FROM NEXPERIA BOARDIn its statement, the Dutch government said that administrative problems at Nexperia posed a threat to the company's "crucial technological knowledge" without elaborating.
"The loss of these capabilities could pose a risk to Dutch and European economic security," it said.
Nexperia is one of the world's largest makers of simple computer chips such as diodes and transistors, though it also develops more advanced technologies such as "wide gap" semiconductors used in electrical settings and useful for electric cars, chargers and AI data centres.
Wingtech said in a filing to the Shanghai stock exchange on Monday that its control over Nexperia would be temporarily restricted due to the Dutch order and court rulings, affecting decision making and operational efficiency.
In addition to the United States, Wingtech has had run-ins before with other Western governments over its operations, with Britain ordering it to divest ownership of a facility in Newport.
The Netherlands scrutinisedNexperia's purchase of startup Nowi in 2023.
Reporting by Toby Sterling in Amsterdam; Additional reporting by Samuel Shen and Brenda Goh in Shanghai. Editing by Edmund Klamann, Michael Perry, Joe Bavier and Matthew Lewis |
