Dutch Government Seizes Control of Chinese-Owned Chip Firm Nexperia Amid Governance Concerns

Dutch Government Takes Control of China-Owned Chip Firm Nexperia The Dutch government has taken control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, citing "serious governance shortcomings" as the reason for its decision. The move aims to safeguard Europe's supply of semiconductors and protect the continent's economic security. According to officials, the government intervened due to concerns that Nexperia's ownership structure posed a risk to the availability of critical chips in an emergency situation. The company operates factories worldwide, including in the UK, where it was forced to sell its silicon chip plant in 2022 after being placed on a list of companies subject to export restrictions by the US government. "Nexperia is committed to maintaining good governance and compliance with all applicable laws and regulations," said a spokesperson for Wingtech, Nexperia's owner. "We will take actions to protect our rights and seek support from relevant authorities." The Dutch government's decision has sparked concerns about tensions between the European Union and China, which have increased in recent months over trade and Beijing's relationship with Russia. "This move is part of a broader effort by the EU to secure its supply chains and reduce dependence on foreign companies," said a spokesperson for the European Commission. "We will continue to work closely with our member states to address any concerns related to national security." The US government placed Wingtech on its so-called "entity list" in December 2024, identifying the company as a national security concern. Under the regulations, US companies are barred from exporting American-made goods to businesses on the list unless they have special approval. Nexperia's takeover by the Dutch government is seen as a significant development in the ongoing debate about the role of foreign-owned companies in critical industries. The move has raised questions about the balance between economic security and national sovereignty. The current status of Nexperia remains uncertain, with the company's future ownership structure still to be determined. The Dutch government has stated that it will work closely with Wingtech to ensure a smooth transition. As the situation unfolds, experts predict that the move could have far-reaching implications for European-Chinese relations and the global semiconductor industry. *Reporting by Bbc.*