AMSTERDAM: The Dutch government has taken control of Chinese-owned computer chipmaker Nexperia amid rising global tensions over technology intellectual property.
This intervention targets the Nijmegen-headquartered company which manufactures chips for cars and consumer electronics.
The government cited serious concerns about the potential transfer of sensitive technology to Nexperia’s Chinese parent company, Wingtech.
It invoked unprecedented powers under the Dutch “Availability of Goods Act” for this extraordinary move.
Wingtech’s shares fell 10% in Shanghai following the announcement of the government’s decision.
The Dutch government will not take ownership of Nexperia but gains power to block management decisions it considers harmful.
A Dutch Economic Affairs Ministry spokesperson confirmed there was no United States involvement in the Nexperia decision.
Wingtech condemned the intervention as “excessive interference driven by geopolitical bias” in a strongly worded statement.
The company alleged that non-Chinese Nexperia executives attempted a “cloaked power grab” through legal proceedings.
An Amsterdam commercial court ruling suspended Wingtech CEO Zhang Xuezheng from his position as executive director at Nexperia.
The court appointed Dutch businessman Guido Dierick to replace Zhang with a deciding vote on company matters.
Control of almost all Nexperia shares was transferred to a Dutch lawyer for management under the court order.
The Dutch government expressed concerns that administrative problems threatened Nexperia’s “crucial technological knowledge”.
It warned that losing these capabilities could pose significant risks to Dutch and European economic security.
Nexperia develops advanced “wide gap” semiconductors used in electric cars, chargers, and AI data centres.
Wingtech acknowledged its control over Nexperia would be temporarily restricted due to the Dutch order and court rulings.
The company stated it was consulting with lawyers and seeking government support to protect its legitimate interests.
Nexperia maintains that it complies with all relevant laws and regulations despite the government intervention.
Wingtech had previously been placed on the United States’ entity list in December 2024 for national security concerns.
Britain had also ordered Wingtech to divest ownership of a facility in Newport following similar scrutiny.
The Netherlands previously scrutinised Nexperia’s purchase of startup Nowi in 2023 before this latest action. – Reuters