Amsterdam, 14 October 2025 – In an unprecedented move, the Dutch government seized control of semiconductor manufacturer Nexperia, citing risks of technology transfer to its Chinese parent company Wingtech.
This marks the first time the Dutch government used the “Availability of Goods Act”, a statute dating back from the Cold War Period. The act allows the government to manage essential goods in times of national emergency.
Nexperia, which produces chips for the automotive and consumer electronics, conducts part of its product testing in China. The Dutch government expressed concern over intellectual property risks and the possibility of product shortages in an emergency.
Under the new arrangement, the Dutch government now holds authority to overturn or stop management decisions for Nexperia. Its CEO, Zhang Xuezheng is suspended, and an independent foreign board member was appointed by the court and granted decisive voting power. Nearly all of Nexperia’s shares were transferred to a Dutch lawyer acting as trustee.
According to Reuters, Wingtech described the Dutch government’s involvement as being driven by geopolitical bias. In December 2024, the U.S. government added Wingtech to its Entity List, which includes companies considered to pose risks to national security or foreign policy interests.
However, an official from the Dutch Ministry of Economic Affairs clarified that its decision regarding Nexperia was made independently.
China’s Ministry of Foreign Affairs Spokesperson, Guo Jiakun, said on X, “China opposes overstretching the concept of national security and taking discriminatory measures targeting companies of a specific country. Market principles should be observed and trade issues must not be politicised. China will firmly defend our legitimate and lawful rights and interests.”
The China Semiconductor Industry Association called for a fair and non-discriminatory business environment to safeguard the global semiconductor supply chain. The association voiced support for Nexperia, and opposed the misuse of national security to justify restrictions against Chinese enterprises abroad.
Implications for Chinese Companies in Europe
This unprecedented intervention serves as a warning to existing Chinese companies in the region, particularly from industries deemed critical to national security such as semiconductors, artificial intelligence, and telecommunications. These firms are likely to face heightened scrutiny across their operations and may need to review business ownership structures.
At the same time, Europe might adopt stricter regulations to protect their technological assets and reduce their dependency on foreign entities. As tensions rise, Chinese companies will be expected to further enhance transparency and strengthen ties with European stakeholders.
For the tech industry, government interventions and takeovers could make foreign investors more cautious to enter the European market.
