Dutch government takes control of China-owned chip firm
3 hours ago Share Save Osmond Chia Business reporter Share Save
Getty Images Nexperia is based in the Netherlands and operates factories worldwide, including in the UK
The Dutch government has taken control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, in a bid to safeguard the European supply of semiconductors for cars and other electronic goods and protect Europe's economic security. The Hague said it took the decision due to "serious governance shortcomings" and to prevent the chips from becoming unavailable in an emergency. Nexperia's owner Wingtech said on Monday that it would take actions to protect its rights and would seek government support. The development threatens to raise tensions between the European Union and China, which have increased in recent months over trade and Beijing's relationship with Russia.
In December 2024, the US government placed Wingtech on its so-called "entity list", identifying the company as a national security concern. Under the regulations, US companies are barred from exporting American-made goods to businesses on the list unless they have special approval. In the UK, Nexperia was forced to sell its silicon chip plant in Newport, after MPs and ministers expressed national security concerns. It currently owns a UK facility in Stockport. The Dutch Economic Ministry said it made the "highly exceptional" decision to invoke the Goods Availability Act over "acute signals of serious governance shortcomings" within Nexperia. "These signals posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities," the ministry said in a statement. "Losing these capabilities could pose a risk to Dutch and European economic security." The statement did not detail why it thought the firm's operations were risky. A spokesperson for the minister of economic affairs told the BBC there was no further information to share.
'Mitigating risk'