Netherlands Seizes Chinese Chip Firm Over Security Fears

In an unprecedented security-driven intervention, the Dutch government has seized control of Nexperia, a Chinese-owned semiconductor company critical to Europe’s auto and electronics industries. Invoking the Goods Availability Act, a wartime emergency law, authorities suspended CEO Zhang Xuezheng, froze major corporate decisions, and transferred voting rights to an independent trustee—effectively neutralizing the influence of parent company Wingtech Technology.

The move stems from national security concerns over potential relocation of key intellectual property and chip manufacturing to China. Officials cited “serious governance shortcomings” and the strategic need to protect semiconductor sovereignty, especially during potential crises affecting the automotive and defense sectors.

Nexperia’s chips are essential to European supply chains, and the takeover marks the strongest European pushback yet against Chinese tech influence. The intervention also follows sustained U.S. pressure—Washington blacklisted Wingtech in 2024, warning of sanctions if Chinese control over Nexperia persisted.

China quickly condemned the action as “economic coercion,” responding with export curbs on rare earths and semiconductor components.

Though operations at Nexperia continue under Dutch supervision, the case underscores a new reality: Europe is prepared to override free-market norms to protect tech infrastructure. The Netherlands’ move reflects a wider geopolitical shift where semiconductors are not just economic assets—but national security imperatives.