Dutch Government Intervenes in Nexperia’s Operations Amid Governance Concerns

The Dutch government has taken decisive action by intervening in the affairs of Nexperia, a Chinese-owned semiconductor manufacturer, citing significant governance issues. According to the Dutch Ministry of Economic Affairs, the intervention aims to protect critical technological knowledge and capabilities that are vital to Dutch and European economic security. The rarely invoked Goods Availability Act was employed in this instance as warnings over governance failures came to light.

Nexperia, under the ownership of Chinese company Wingtech, has faced restricted control due to the government's move. While Wingtech retains economic benefits as a shareholder, its influence is curtailed, causing its stock to drop by 10 percent on the Shanghai Stock Exchange. The parent company asserts its commitment to legal measures to safeguard its interests and is seeking support from relevant governmental authorities.

The Dutch government's intervention highlights ongoing efforts to secure critical European technology against external threats. This move echoes actions taken last year by the US Commerce Department, which added Wingtech to a list of Chinese technology companies under stringent export controls, underscoring growing international scrutiny of Chinese technology entities.