The Dutch government has taken control of semiconductor manufacturer Nexperia, citing concerns over the transfer of critical technology to its Chinese parent company, Wingtech, and risks to European economic security.
Officials said the exceptional decision followed "acute signals of serious governance shortcomings" at the company, with laws allowing state intervention to safeguard the supply of essential goods, enabling the government to reverse or block company decisions deemed harmful while allowing normal production to continue.
"These signals posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities," the Ministry of Economic Affairs said.
"Losing these capabilities could pose a risk to Dutch and European economic security."
Wingtech’s shares dropped 10% in Shanghai following the announcement. The company said it is consulting with lawyers and seeking government support to "protect the legitimate rights and interests of the company".
Chairman Zhang Xuezheng was suspended from Nexperia’s boards by an Amsterdam court order last week, with an independent non-Chinese person appointed in his place.
Nexperia, which was once part of Dutch electronics group Philips, was acquired by Wingtech in 2018 for around $3.6 billion.
It produces semiconductors used in vehicles and consumer electronics and is one of the world’s largest makers of basic components such as diodes and transistors.
The intervention comes as Western nations intensify scrutiny of Chinese ownership in critical technology sectors. The US government placed Wingtech on its “entity list” in December 2024, identifying it as a national security concern and restricting exports of American-made goods to the company.
While based in the Netherlands, Nexperia operates a facility in Stockport, UK, after being ordered by the UK government to sell its Newport wafer plant on national security grounds. US electronics giant Vishay bought the plant for $177 million (£142m).