Dutch take control of Chinese-owned chipmaker fearing tech leaks

The Netherlands government said it is taking control of Chinese-owned Dutch chipmaker Nexperia due to fears of potential transfers of crucial technology to China.

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 aimed at using chips to make batteries more efficiently.

Chinese firm Wingtech purchased 100% of Nexperia, once part of Dutch firm Philips, for around $3.63 billion in 2018. Management at Nexperia has previously argued that it keeps the chipmaker’s operations at an arm’s length from its Chinese owner.

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But the Dutch Ministry of Economic Affairs said its take over at Nexperia came in reaction to “acute signals of serious administrative shortcomings and actions” at the company.

The move allows the government to reverse or block management decisions it sees as harmful, but the company’s regular production may continue.

The Dutch Ministry of Economic Affairs said late on Sunday it saw “acute signals of serious administrative shortcomings and actions” at the company.

“These signals threaten the continuity and safeguarding of crucial technological knowledge and capabilities on Dutch and European soil,” the statement said, describing the intervention as “exceptional”.

“The loss of these capabilities could pose a risk to Dutch and European economic security.”

“The decision aims to prevent a situation in which the goods produced by Nexperia (finished and semi-finished products) would become unavailable in an emergency,” the statement said.

The move prompted a 10% fall in Wingtech’s shares in Shanghai on Monday, and the firm said in a statement it was consulting with lawyers and seeking government support to “protect the legitimate rights and interests of the company.”

Long-running concerns

Wingtech said in a stock exchange filing that its control over Nexperia will be temporarily restricted due to the Dutch order and court rulings, affecting decision making and operational efficiency.

It said the company’s chairman Zhang Xuezheng was suspended from Nexperia’s boards by an Amsterdam court order on October 6. An independent non-Chinese person with a “deciding vote” would be appointed in his place, Wingtech said.

A spokesperson for Nexperia said the company adheres to “all existing laws and regulations, export controls and sanction regimes,” and declined further comment.

Wingtech was placed on the United States’ “entity list” in December 2024, identifying it as a national security concern. Nexperia said at the time that it would comply with the US rules, but that would not greatly impact Nexperia’s operations, which it argues are kept at arm’s length from Wingtech.

However, last month the US expanded entity list rules to automatically include subsidiaries that are 50% or more owned by companies on the entity list.

It was not immediately clear whether that move was linked to the Dutch government action, though the two countries cooperate closely on computer chip industry export controls. A spokesperson for the Dutch government said on Monday there was no US involvement in the decision to take control of Nexperia.

A European Union spokesperson also said the European Commission had been in close contact with Dutch authorities on Nexperia.

This is the second such controversy involving Nexperia since its Chinese takeover. In 2022, the United Kingdom ordered Nexperia to sell its stake in the UK’s largest microchip plant, Newport Wafer Fab, citing national security concerns.

• Reuters, with additional editing and inputs from Vishakha Saxena

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UK’s Largest Chip Plant Staff Want to Keep China Owners – BBC

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China’s Dutch Chip-Equipment Imports Jump 1,050% – SCMP

China Threatens to Cut Off ASML Over New US Chip Curbs

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