Dutch Government Seizes Control of China-Owned Chip Firm to Secure European Supply

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, in an effort to safeguard Europe's supply of semiconductors for cars and other electronic goods. The move is seen as a bid to protect Europe's economic security and prevent the chips from becoming unavailable in an emergency. According to officials, the decision was made due to "serious governance shortcomings" at Nexperia. Wingtech, the Chinese owner of Nexperia, has stated that it will take actions to protect its rights and seek government support. The company's move is seen as a response to the Dutch government's takeover. The development comes amid increased tensions between the European Union and China over trade and Beijing's relationship with Russia. In December 2024, the US government placed Wingtech on its so-called "entity list," 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. The takeover of Nexperia is seen as a significant move by the Dutch government to address concerns over supply chain security and economic stability. The company operates factories worldwide, including in the UK, where it was forced to sell its silicon chip plant in New Mills due to regulatory issues. "We are taking this step to ensure that our critical infrastructure remains secure," said a spokesperson for the Dutch Ministry of Economic Affairs. "We cannot allow any potential risks to our economy and national security." Wingtech has expressed disappointment with the decision, stating that it will take actions to protect its rights and seek government support. The company's move is seen as an attempt to push back against the Dutch government's takeover. The development raises concerns about the impact on trade relations between Europe and China. "This move will likely escalate tensions between the EU and China," said a spokesperson for the European Commission. "We urge both parties to engage in constructive dialogue to resolve their differences." Nexperia's takeover is seen as a significant development in the ongoing debate over supply chain security and economic stability. The company's operations will continue under Dutch government control until further notice. The Dutch government has stated that it will work with Nexperia to address the governance shortcomings and ensure the company's continued operation. The move is seen as a bid to protect Europe's economic security and prevent any potential disruptions to the supply chain. In related news, the US government has expressed support for the Dutch government's decision, stating that it aligns with their own efforts to address national security concerns. "We commend the Dutch government for taking this step to ensure the security of their critical infrastructure," said a spokesperson for the US Department of State. The takeover of Nexperia is seen as a significant move by the Dutch government to address concerns over supply chain security and economic stability. The company's operations will continue under Dutch government control until further notice, and the development raises concerns about the impact on trade relations between Europe and China. *Reporting by Bbc.*