The Hague, October 13, 2025: The Dutch government has taken direct control of Nexperia, a Netherlands-based chipmaker owned by China’s Wingtech Technology, citing significant governance shortcomings and the need to protect national economic security. The rare intervention was announced on October 12 and carried out under emergency powers authorized by Dutch legislation. The Ministry of Economic Affairs invoked the Goods Availability Act, a law designed to ensure access to strategically important goods and services in times of crisis.
Netherlands asserts control over China-owned chipmaker in latest tech sector intervention move. (Stock Image)
Under the measure, the government can impose binding instructions on companies and override existing governance arrangements without disrupting ongoing business operations. Officials confirmed that the day-to-day functioning of Nexperia will continue while the state exercises oversight of its management decisions. The move comes amid heightened scrutiny of foreign investments in key technology sectors. Nexperia manufactures semiconductors used across multiple industries including automotive, mobile devices, and industrial systems. The company employs hundreds of workers in the Netherlands and maintains its operational headquarters in Nijmegen.
Wingtech Technology, which acquired Nexperia in 2019, has strongly opposed the Dutch decision. The company said its control rights have been “temporarily restricted” and announced that it would challenge the action through legal channels. Following the announcement, Wingtech shares dropped by the maximum daily limit of 10 percent on the Shanghai Stock Exchange. The Dutch government confirmed it would appoint an independent director to Nexperia’s board to represent national interests.
Government invokes Goods Availability Act
This individual will hold decisive voting authority over strategic matters. A Dutch court had earlier suspended Zhang Xuezheng, the chair of Wingtech and the former head of Nexperia’s board, as part of the process leading up to the state’s intervention. According to the Ministry of Economic Affairs, the decision to assume control of Nexperia was triggered by “acute signals of serious administrative shortcomings and actions” within the company’s governance structure.
While the ministry did not elaborate on specific incidents, it emphasized that the intervention was based on concrete evidence and implemented through a formal legal process. The Netherlands is one of several European countries tightening oversight of technology assets considered vital to national and continental security. The European Union has urged member states to assess foreign ownership in sensitive sectors, especially involving companies with connections to states subject to geopolitical tensions. The Dutch government stated that this intervention is “highly exceptional” and stressed that it does not signal a broader shift in its investment policy.
Alignment with broader tech security trends
Nexperia previously faced regulatory action in the UK, where the government ordered the firm in 2022 to divest its acquisition of Newport Wafer Fab, citing national security grounds. The case became a prominent example of Western governments reevaluating the risks of foreign ownership in the semiconductor supply chain. The United States has also imposed restrictions on Wingtech and its subsidiaries, placing them on the Department of Commerce’s entity list. This designation limits access to American-origin technologies and components. The Dutch government’s action does not directly relate to U.S. measures but reflects increasing alignment among Western nations on securing semiconductor infrastructure.
The Dutch Ministry of Economic Affairs confirmed that it remains in dialogue with the company and its shareholders and is prepared to ensure that Nexperia continues to operate in a way that aligns with national interests. No disruption to Nexperia’s production or supply chain has been reported. The state’s control over Nexperia will remain in effect until the identified governance issues are resolved and legal procedures are completed. Dutch authorities have not indicated how long the measure will remain in place. – By EuroWire News Desk.