The Dutch government has taken control of Nexperia, a Chinese chipmaker based in the Netherlands, in an attempt to protect Europe's supply of semiconductors for cars and other electronic goods and protect Europe's economic security.
The Hague said it made the decision due to “serious management deficiencies” and to prevent chips from being unavailable in an emergency.
Nexperia owner Wingtech said on Monday it would take action to protect its rights and seek government support.
The development threatens to increase tensions between the European Union and China, which have intensified in recent months over trade and Beijing's relations with Russia.
In December 2024, the US government added Wingtech to its so-called “entity list,” designating the company as a national security threat.
The rules prohibit U.S. companies from exporting U.S.-made goods to designated businesses without special permission.
In the UK, Nexperia was forced to sell its Newport silicon chip plantafter MPs and ministers raised concerns about national security. It currently owns a plant in Stockport in the UK.
The Dutch Ministry of Economic Affairs said it had taken the “highly exceptional” decision to apply the Product Availability Act due to “acute signals of serious management deficiencies” at Nexperia.
“These signals pose a threat to the continuity and preservation on Dutch and European soil of essential technological knowledge and capabilities,” the ministry said in a statement.
“The loss of these opportunities could jeopardize the economic security of the Netherlands and Europe.”
The statement does not specify why the company considers the firm's activities risky. A spokesman for the economy minister told the BBC there was no further information.
The Availability of Goods Act is intended to allow The Hague to intervene in companies in exceptional circumstances. These include threats to the country's economic security and the supply of critical goods.
According to the order, Dutch Economy Minister Vincent Karremans can reverse or block Nexperia's decisions if they are potentially harmful to the company's interests, to its future as a business in the Netherlands or Europe, or to ensure the availability of supplies in an emergency.
The Dutch government added that the company's production can continue as normal.
“This measure is intended to reduce this risk,” the ministry said.
Shanghai-listed shares of Nexperia's parent company Wingtech fell 10% on Monday morning.
A Nexperia spokesman said the company “complies with all applicable laws and regulations, export control and sanctions regimes” and had no further comment.
In a statement in Chinese, Wingtech said its operations continue uninterrupted and that it remains in close communication with its suppliers and customers.
Wingtech The company's chairman, Zhang Xuezheng, was removed from serving on Nexperia's board of directors by an Amsterdam court earlier this month, the stock report said.
The company was also in discussions with lawyers about possible legal remedies, it added.
The BBC also contacted the Chinese embassies in the Netherlands and Brussels.
