Dutch Government Seizes Control of Chipmaker Nexperia Over Security Fears

The Dutch government has taken decisive action to assume control over Nexperia, a major Dutch chip manufacturer, citing concerns that crucial technology could be transferred to its Chinese parent company, Wingtech. This unprecedented move comes in response to what authorities describe as 'acute signals of serious administrative shortcomings' at Nexperia.

The Dutch Ministry of Economic Affairs aims to safeguard technological capabilities and economic security, both domestically and across Europe. Consequently, the government can now block or reverse management decisions deemed harmful. Although the regular production of chips will continue, strategic decisions are under government oversight.

Wingtech, facing stock market repercussions and legal complexities, is temporarily restricted from controlling Nexperia fully. Chairman Zhang Xuezheng has been suspended, and an independent non-Chinese director with decisive voting power will be appointed. The situation highlights ongoing geopolitical tensions and the collaboration between the U.S. and Dutch authorities in regulating chip industry exports.