The Hague, October 13, 2025 — In a dramatic escalation of Europe’s effort to protect its high-tech industries, the Dutch government has taken direct control of Nexperia, a Chinese-owned semiconductor company, citing “serious governance shortcomings” and national security risks. The unprecedented move underscores Europe’s deepening anxiety over foreign ownership of critical technology assets and signals a shift toward more assertive industrial sovereignty.
A Landmark Government Intervention
The Netherlands, home to some of the world’s most advanced semiconductor technologies, invoked emergency powers under the Goods Availability Act — a rarely used law designed to safeguard strategic industries essential to national security and economic stability.
Officials described the takeover as a “highly exceptional” measure, emphasizing that the step was necessary to ensure the continued functioning of Nexperia’s operations, which are integral to Europe’s supply of essential electronic components.
“The government has identified serious governance shortcomings that posed potential risks to continuity and national interest,” said Dutch Economic Affairs Minister Micky Adriaansens. “This action is not about interfering with business; it’s about protecting critical infrastructure and ensuring that the Netherlands retains control over key technologies.”
The intervention allows the Dutch government to supervise or override certain management decisions at Nexperia, block asset transfers, and, if needed, remove executives.
Who Is Nexperia? A Strategic Asset in Global Chipmaking
Nexperia, headquartered in Nijmegen, the Netherlands, is a major producer of semiconductors used in smartphones, electric vehicles, industrial equipment, and consumer electronics. It employs over 14,000 people worldwide and operates facilities in Europe and Asia.
The company was acquired in 2019 by Wingtech Technology, a Chinese electronics manufacturer with close ties to the Chinese state. While Nexperia has maintained that it operates independently, its ownership structure and access to sensitive chipmaking technologies have drawn scrutiny from Western governments.
The Netherlands’ decision follows growing global concerns that Chinese ownership of advanced technology firms could give Beijing access to critical infrastructure or intellectual property.
A Pattern of Rising Western Scrutiny
This is not the first time Nexperia has been at the center of geopolitical tensions. In 2022, the UK government forced Nexperia to sell its Newport Wafer Fab, Britain’s largest semiconductor manufacturing facility, citing national security concerns.
The Dutch action appears to extend that precedent — representing one of the first times a European government has directly intervened in a Chinese-owned tech company operating within its borders.
The decision aligns with a broader Western trend: the United States, Japan, and several EU nations have tightened investment screening mechanisms and imposed export restrictions to prevent sensitive technologies from falling under foreign control.
“We are witnessing a paradigm shift,” noted Professor Hendrik Vos, a European trade analyst at Ghent University. “Economic security has become national security. The Netherlands’ move may well become the new European model for protecting strategic industries.”
China’s Ownership and the Wingtech Connection
Wingtech Technology, Nexperia’s parent company, is partially state-backed and listed on the Shanghai Stock Exchange. It produces smartphones, optical components, and chips, and has been identified by U.S. authorities as a company with strategic importance to China’s industrial policy.
In recent years, Wingtech has faced multiple regulatory hurdles abroad — from export restrictions to investment barriers — as Western nations tighten control over technologies that could have military or dual-use applications.
Following the Dutch government’s move, Wingtech released a statement calling the intervention “unjustified and disproportionate,” asserting that Nexperia operates in full compliance with Dutch and European laws. The company said it would “explore all legal avenues” to defend its rights.
Shares in Wingtech fell more than 10% on Chinese markets following the news.
Economic Sovereignty Meets Geopolitical Realism
The Netherlands’ action reflects growing European unease with China’s influence over strategic sectors — from energy infrastructure to digital technologies. Dutch officials have grown increasingly cautious following a series of controversies involving technology transfer, espionage risks, and supply chain disruptions.
The decision also follows the Dutch government’s recent cooperation with the United States and Japan to restrict exports of advanced lithography equipment from Dutch giant ASML — a move aimed at limiting China’s access to cutting-edge semiconductor manufacturing tools.
By intervening in Nexperia, The Hague is sending a message that it intends to extend that protective logic to domestic assets as well.
“This isn’t an anti-China move; it’s a pro-security move,” said Dr. Laura Van Riet, a policy expert at the Clingendael Institute. “The Netherlands understands that chips are not just an economic commodity — they are a strategic resource.”
The Stakes: Europe’s Technological Independence
Europe’s semiconductor ecosystem is vital to its industrial future, powering everything from electric vehicles to defense systems. The European Chips Act, passed in 2023, set out an ambitious goal to double the EU’s share of global chip production by 2030.
However, dependence on foreign-owned firms — particularly those linked to China — remains a point of vulnerability. The Nexperia case highlights how deeply intertwined Chinese capital has become with European manufacturing, and how difficult it may be to disentangle those ties without disrupting production.
For the Netherlands, the challenge lies in balancing openness with protection: maintaining a business-friendly environment while defending technological sovereignty.
“We cannot build a secure Europe on insecure foundations,” said European Commissioner for Industry Thierry Breton in a separate statement supporting the move. “Every nation must ensure that its critical technologies remain under trusted control.”
Potential Consequences and Global Reactions
1. Beijing’s Diplomatic Response
China’s Ministry of Commerce condemned the Dutch action, urging The Hague to “respect market principles and ensure fair treatment of Chinese enterprises.” Officials hinted at possible retaliatory measures against European companies operating in China.
The intervention may further strain EU-China relations, which have already deteriorated amid disputes over trade imbalances, tariffs, and Beijing’s support for Russia.
2. Market and Investor Uncertainty
Analysts warn the move could unsettle foreign investors in Europe’s high-tech sector. “It raises concerns about predictability,” said German investment analyst Lukas Berger. “Governments are increasingly willing to step in — even in established democracies — if they believe national security is at risk.”
3. Supply Chain Implications
Although Dutch authorities insist Nexperia’s production will continue uninterrupted, suppliers and customers are watching closely. Any disruption could affect Europe’s already fragile semiconductor supply chain, potentially pushing up prices for manufacturers reliant on Nexperia’s chips.
4. Legal Battle on the Horizon
Wingtech is expected to launch a legal challenge, possibly arguing that the intervention violates European investment treaties or trade agreements. Experts say the outcome could set a legal precedent for future state interventions in foreign-owned tech firms.
A Turning Point for Europe’s Tech Future
The Nexperia takeover represents more than a single corporate incident — it’s a defining moment in Europe’s struggle to assert control over its technological destiny.
By intervening directly in a Chinese-owned company, the Netherlands has demonstrated that economic openness has limits when it collides with national security imperatives.
The move could embolden other European governments to take similar steps. Countries like Germany, Italy, and France have already introduced stricter screening processes for foreign investments in strategic industries.
As geopolitical competition intensifies, semiconductors — once a niche industrial product — have become the frontline of a new kind of global power struggle. Whoever controls chip production controls the future of everything from artificial intelligence to defense technology.
“In the 20th century, oil shaped geopolitics,” noted Dr. Van Riet. “In the 21st, it’s semiconductors. And Europe has just made clear it won’t let that power slip away.”
Leave a Reply