Netherlands government invokes 'emergency powers' to take control of Chinese chip company banned by America for 'helping ...'

In what can be seen as escalating geo-political war on trade relations, the Dutch government has taken control of Nexperia, a Netherlands-based chipmaker owned by China’s Wingtech Technology . The decision, announced by the Dutch Minister of Economic Affairs, invokes the “Goods Availability Act” to ensure the availability of Nexperia’s chips amid escalating global trade tensions. The ministry cited “recent and acute signals of serious governance shortcomings” at Nexperia, warning that these posed a threat to Dutch and European technological capabilities. Nijmegen-headquartered Nexperia 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 such as "wide gap" semiconductors used in electrical settings and useful for electric cars, chargers and AI data centres.

“Losing these capabilities could pose a risk to Dutch and European economic security,” the statement read, highlighting the automotive sector’s vulnerability. The intervention, described as “highly exceptional,” was enacted in September to prevent potential disruptions in chip supply during emergencies.

Analysts see Donald Trump's 'hand' in the deal
The move comes amid heightened U.S.-China trade tensions, with the US President Donald Trump recently threatening 100% tariffs on Chinese exports. While the Dutch Economic Affairs Ministry denied U.S. involvement, calling the timing “purely coincidental,” the decision aligns with broader US-Netherlands cooperation on chip industry export controls. Beijing’s recent restrictions on rare earth elements and magnets, critical for Europe’s automotive sector, may further complicate trade relations.

Wingtech had already been placed on the United States' "entity list" in December 2024 for its alleged role "in aiding China's government's efforts to acquire entities with sensitive semiconductor manufacturing capability."

Chinese company slams Dutch government's takeover
Wingtech, in a now-deleted WeChat post archived by Pekingnology, criticized the Dutch government’s actions as “excessive intervention driven by geopolitical bias” rather than evidence-based risk assessment. The company emphasized its compliance with local laws since acquiring Nexperia in 2019 and its employment of thousands across the Netherlands, Germany, and Britain. A Nexperia spokesperson told CNBC that the company remains compliant with all regulations and is in regular contact with authorities but offered no further comment.

This seizure follows previous Dutch scrutiny of Nexperia, including a 2023 investigation into its acquisition of chip startup Nowi, which was ultimately approved. The move could further strain China-Netherlands trade relations, already tense due to restrictions on Dutch firm ASML’s exports of advanced chip-making equipment to China.

As global trade frictions intensify, the Dutch government’s unprecedented action underscores the strategic importance of semiconductors in national and economic security.

Following the announcement, Wingtech’s stock plummeted 10% -- its daily limit -- on the Shanghai Stock Exchange. A corporate filing dated October 13 confirmed that Nexperia is now under temporary external management, with restrictions on changes to its assets, business, or personnel for up to a year. Wingtech Chairman Zhang Xuezheng has been suspended from his roles at Nexperia, though the company’s daily operations will continue.