n a move that has deepened tensions between China and Europe, the Dutch government has taken control of semiconductor company Nexperia, which is owned by the Chinese technology group Wingtech. The intervention, announced at the end of September, marks the first time the Netherlands has used a Cold War-era emergency law called the Goods Availability Act. The decision has drawn strong reactions from China and raised questions about Europe’s approach to foreign ownership in sensitive industries, especially the semiconductor sector that powers everything from cars to smartphones and artificial intelligence.
The takeover comes at a time when global competition over semiconductor production has reached new heights. The United States and its allies in Europe have been tightening restrictions on Chinese access to advanced chip technology, citing national security concerns. China, in turn, has introduced export controls on rare-earth metals and other materials vital for chipmaking. The Dutch move against Nexperia sits squarely in this larger backdrop of trade tensions, protectionist policies, and technological rivalry between global powers.
The Dutch Ministry of Economic Affairs confirmed that it had invoked the Goods Availability Act to assume temporary control over Nexperia on September 30. The law, dating back to 1952, allows the government to intervene in private companies under exceptional circumstances, especially when the availability of crucial goods or technology for the nation is at risk. Officials described the intervention as “highly exceptional,” saying it was necessary to protect national and European interests in semiconductor production.
According to the Dutch government, the decision was driven by concerns over how Nexperia was being managed under its Chinese leadership. The Ministry said there were “serious administrative shortcomings” at the company, which could endanger the continuity of chip production on Dutch and European soil. The government believes that the control measure will ensure that Nexperia’s chips remain available to European industries in the event of any disruption. These chips are vital to the automotive and consumer electronics sectors, which depend heavily on Nexperia’s products.
The move followed a ruling by the Dutch Enterprise Chamber, a division of the Amsterdam Court of Appeal, after an emergency hearing on October 7. The court found reasons to doubt the sound management of Nexperia under its then-CEO, Zhang Xuezheng, who is also the founder of Wingtech. The court suspended Zhang and appointed Nexperia’s Chief Financial Officer, Stefan Tilger, as interim CEO. Another Dutch executive, Guido Dierick, was brought in as non-executive director to oversee company affairs.
In its public statement, Nexperia acknowledged that the Dutch government’s order effectively places key decisions under state supervision. For the next year, any major decisions such as asset relocations, executive dismissals, or strategic changes must receive prior approval from the government. However, the company said its production operations would continue as normal and assured partners and clients that business continuity would not be affected.
Founded in Nijmegen, Netherlands, Nexperia has a long history in European electronics. Its roots trace back to Philips’ semiconductor division, which evolved over decades into a global supplier of power and logic chips. Today, Nexperia employs about 12,500 people across Europe, Asia, and the United States. The company manufactures billions of components every year that go into cars, smartphones, and consumer devices. Wingtech, a Shanghai-listed company, acquired Nexperia in 2018 for $3.63 billion.
While Nexperia operates globally, including assembly and testing sites in China, Germany, Malaysia, and the Philippines, the Netherlands has always remained central to its identity. Dutch officials argue that allowing the company’s control and decision-making to rest entirely in Chinese hands poses risks to national economic security. They claim that the governance structure under Zhang could have led to crucial technological knowledge being transferred abroad or production being disrupted in Europe.
The Dutch government also justified its decision by pointing to broader European interests. Semiconductors are now considered strategic assets in Europe’s industrial and security framework. The European Union has been promoting the EU Chips Act, aimed at strengthening local production and reducing dependence on foreign suppliers, especially from Asia. The Netherlands, home to major chip equipment maker ASML, plays a key role in this strategy. Ensuring uninterrupted access to Nexperia’s chips, officials say, is part of protecting Europe’s supply chain resilience.
China reacted sharply to the Dutch intervention. The Chinese Ministry of Foreign Affairs condemned the decision, calling it an “overreach of national security concerns” and accusing the Netherlands of discriminating against Chinese companies. Wingtech, Nexperia’s parent company, described the move as “excessive interference driven by geopolitical bias rather than facts.” The company said the intervention was politically motivated and would undermine business confidence in Europe.
Beijing’s response went beyond statements. The Chinese Ministry of Commerce issued an export control order blocking Nexperia China and its subcontractors from exporting certain semiconductor components. This restriction prevents the company’s Chinese operations from sending finished products or sub-assemblies abroad without government approval. Nexperia said it was in talks with Chinese authorities to obtain an exemption but warned that the ban could disrupt global supply chains.
The export ban reflects how semiconductor disputes have become a key part of global trade politics. In recent months, China has imposed similar restrictions on rare-earth metals used in chip manufacturing, citing national security. These metals are essential for various industries, from electric vehicles to defence technology. The US and its allies have viewed such measures as retaliatory moves in the ongoing technology standoff.
The Nexperia episode also highlights how the global chip market has become a central stage for geopolitical rivalry. The United States has repeatedly expanded its sanctions on Chinese technology firms, including restrictions on equipment exports and research cooperation. Wingtech itself was added to the US “entity list” in December 2024, limiting its access to American technologies. This has made Nexperia’s European operations even more critical for the group’s survival.
In the Netherlands, officials have defended their decision by arguing that it was not about politics but about safeguarding continuity. The Ministry of Economic Affairs said that under Zhang’s leadership, there were concerns that company decisions might jeopardise the availability of critical chip supplies within Europe. The government stressed that it does not plan to nationalise Nexperia permanently but only to ensure that governance issues are resolved and operations stabilised.
Meanwhile, the European Commission has expressed support for the Netherlands’ decision. A spokesperson said the EU would continue working with Dutch authorities to protect key technological assets and ensure that Europe’s semiconductor supply chain remains secure. The EU sees the Nexperia case as an example of why stronger oversight mechanisms are necessary for strategic industries.
For Wingtech, the consequences have been immediate. The company’s shares dropped by the daily limit of 10 percent for two consecutive days on the Shanghai Stock Exchange following the Dutch government’s move. Investors fear that the intervention could weaken Wingtech’s control over one of its most valuable assets and affect its global operations.
The situation adds another layer of uncertainty to the already tense relationship between China and Western nations. The chip industry, which once symbolised global cooperation, has now become a space of rivalry and suspicion. As both sides tighten control over technology flows and supply chains, companies like Nexperia find themselves caught between competing political interests.
