The Dutch government has taken control of Nexperia, a Chinese-owned chipmaker, due to risks to Europe’s chip supply.
Announced on Sunday, this bold step follows U.S. warnings about Nexperia’s ties to China, stirring global tech tensions.
Why the U.S. Raised Alarms
In June, U.S. officials warned Dutch authorities about Nexperia’s CEO, Zhang Xuezheng. They said his leadership could block U.S. exports.
Court papers show the U.S. urged Zhang’s removal. By the takeover, Zhang was suspended. Nexperia is owned by Wingtech, a Chinese firm with government ties.
Last year, the U.S. added Wingtech to a restricted list for seeking sensitive chip technology. In September, this list included Nexperia, with export limits set for November.
Dutch Take Action
Using an old law, the “Availability of Goods Act,” the Dutch took charge of Nexperia’s Nijmegen operations. This law lets the government stop harmful decisions without owning the company.
Economy Minister Vincent Karremans cited urgent threats to chip supplies for European industries.
A court backed this, naming Guido Dierick as interim leader with full control. Nearly all Nexperia shares now sit with a Dutch lawyer for oversight.
China’s Strong Reaction
The move has sparked conflict with China. Nexperia, bought by Wingtech from Philips in 2018, called it unfair and politically driven. China banned Nexperia from exporting parts made there.
A Chinese state media outlet labeled the takeover “legal theft,” claiming the West uses security as an excuse to curb China’s tech growth.
Wingtech also accused some Nexperia executives of trying to change the company’s ownership in a hidden power grab. Nexperia, with plants in Manchester and Hamburg, is now talking with the U.S. to ease export rules.
Global Context
This follows the UK’s order last year for Wingtech to sell its stake in a Welsh chip plant over security fears.
Chips are key for cars, tech, and more, making Nexperia’s case a flashpoint in global supply chain worries.
The Dutch, supported by Nexperia’s labor council, aim to protect Europe’s economy while handling delicate international ties.
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