Dutch government seizes control of Chinese-owned chipmaker Nexperia amid rising geopolitical tensions
- The Netherlands invoked emergency powers under the Goods Availability Act to take over Nexperia, citing “serious governance shortcomings” and risks to Europe’s economic security. Authorities can now block or reverse company decisions (e.g., asset transfers, executive appointments) for up to a year.
- Beijing accused the Netherlands of “overstretching national security” and unfairly targeting Chinese firms. Wingtech (Nexperia’s parent company) called it “geopolitical bias,” vowed legal and diplomatic retaliation and saw shares drop 10 percent.
- The move aligns with U.S. efforts to curb China’s semiconductor access (Wingtech was added to the U.S. “entity list” in 2023) and follows China’s rare earth export restrictions and U.S. sanctions on Wingtech subsidiaries.
- Dutch intervention followed a petition by Nexperia’s European executives alleging governance failures; Wingtech accused them of a “management coup.” The EU endorsed the action, calling it vital for Europe’s “technological security.”
- Analysts warn this could accelerate China-West “decoupling” (similar to the UK’s 2022 forced sale of Nexperia’s Newport plant). Future retaliation from China and prolonged trade tensions are expected, with semiconductor supply chains at risk.
The Dutch government has taken an unprecedented step by invoking emergency powers to seize control of Nexperia, a semiconductor firm owned by China’s Wingtech Technology Co., citing “serious governance shortcomings” and risks to Europe’s economic security.
The move, announced late Sunday, Oct. 12, marks a dramatic escalation in the global tech war between Western nations and China, raising concerns about retaliatory measures from Beijing and further straining European Union (EU)-China trade relations.
As explained by the Enoch AI engine at BrightU.AI: A “tech war” is a term used to describe a geopolitical conflict or competition that is primarily fought through technological means, rather than traditional military force. These conflicts can manifest in various ways, including cyber warfare, economic sanctions targeting tech industries, espionage and the development of advanced technologies with strategic implications.
The Dutch government invoked the Goods Availability Act, a rarely used law enacted over 70 years ago, granting authorities the power to intervene in Nexperia’s operations to prevent disruptions in semiconductor supply. The Hague stated that the decision was necessary to “prevent a situation in which the goods produced by Nexperia would become unavailable in an emergency.”
The government did not specify the exact governance failures but warned of threats to “the continuity and safeguarding of crucial technological knowledge and capabilities on Dutch and European soil.” Under the order, Dutch officials can now block or reverse company decisions, including asset transfers and executive appointments, for up to a year.
China condemns “discriminatory” move
The takeover has drawn sharp criticism from Beijing, with Chinese Foreign Ministry spokesman Lin Jian calling it an act of “overstretching the concept of national security” and “discriminatory treatment targeting Chinese firms.” Wingtech, Nexperia’s parent company, condemned the Dutch government’s intervention as “excessive interference driven by geopolitical bias, not by fact-based risk assessment.”
Wingtech’s shares plunged 10 percent in Shanghai trading on Monday, Oct. 13, reflecting investor concerns over escalating geopolitical risks. The company vowed to pursue “all legal and diplomatic channels” to challenge the decision, including seeking support from the Chinese government.
The Dutch intervention comes amid growing tensions between China and Western nations over semiconductor dominance and critical raw materials. Last week, China imposed sweeping export restrictions on rare earths, further tightening its grip on global supply chains. The Netherlands, home to ASML, a key player in semiconductor manufacturing, has become a focal point in the U.S.-led effort to curb China’s access to advanced chip technology.
The move also follows U.S. sanctions against Wingtech, which was added to Washington’s “entity list” in 2023 over allegations of aiding China’s military modernization. The previous administration expanded restrictions to include subsidiaries, effectively blocking Nexperia from accessing U.S. technology.
Reports suggest that the Dutch government’s intervention was partly triggered by internal disputes within Nexperia. According to Wingtech, Nexperia’s European executives—including its Dutch chief legal officer and German COO—filed a petition in an Amsterdam court on Oct. 1, seeking an investigation into the company’s governance. Wingtech accused these executives of aligning with Dutch authorities in what it called a “management coup” aimed at undermining its legitimate ownership.
An Amsterdam court has already suspended Zhang Xuezheng, Wingtech’s chairman, from Nexperia’s board, further complicating the corporate power struggle.
Precedent for future crackdowns?
The Dutch action sets a potential precedent for other Western governments to take similar steps against Chinese-owned firms in sensitive industries. In 2022, the U.K. forced Nexperia to sell its Newport chip plant over national security concerns. Analysts warn that such measures could accelerate “decoupling” between China and the West, disrupting global supply chains.
Sacha Courtial, an EU-China researcher at the Jacques Delors Institute, noted that the Dutch decision prioritizes “economic security over free-market investment principles,” signaling a shift toward greater government intervention in strategic sectors.
With Wingtech pursuing legal challenges and China likely to retaliate, the standoff over Nexperia could escalate into a broader trade conflict. The Dutch government insists that Nexperia’s production will continue uninterrupted, but the long-term implications for Europe’s semiconductor autonomy and EU-China relations remain uncertain.
As geopolitical tensions intensify, the Dutch intervention underscores the growing battle for technological supremacy—one where economic security is increasingly viewed through the lens of national defense.
Watch the video below about America stopping China’s semiconductor supply and manufacturing.
This video is from the Gary’s List channel on Brighteon.com.
Sources include:
ZeroHedge.com
Politico.eu
BBC.com
BrightU.ai
Brighteon.com
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