Dutch Government Seizes Control of Chinese-Owned Chipmaker, Raising Geopolitical Tensions

In a move underscoring geopolitical tensions, the Dutch government has seized control of Nexperia, a Chinese-owned chipmaker, citing risks to European economic security due to corporate governance shortcomings. The Dutch Ministry of Economic Affairs invoked the rarely used Goods Availability Act to exert influence over the company.

Concerns have arisen as Nexperia, owned by China's Wingtech Technology, could potentially destabilize critical technological knowledge and capabilities in Dutch and European realms. The Dutch government's intervention aims to prevent the chips from becoming inaccessible in emergencies, allowing routine production to continue.

Wingtech has criticized the actions as excessive, arguing that they are geopolitically biased rather than rooted in fact-based risk assessment. Nexperia plans to seek legal remedies, while the European Union remains in close contact with Dutch authorities to secure technological capabilities on the continent.

(With inputs from agencies.)