Dutch Government Takes Control of China-Owned Chip Firm to Secure European Supply
In a move aimed at safeguarding Europe's semiconductor supply, the Dutch government has taken control of Nexperia, a Chinese-owned chipmaker based in the Netherlands. The decision was made public on Monday, citing "serious governance shortcomings" and concerns about preventing potential shortages in case of an emergency.
According to reports from The Hague, the Dutch government took the decision due to its desire to protect European economic security. This move is seen as an effort to prevent Nexperia's chips from becoming unavailable in an emergency, which could have significant implications for the automotive and electronics industries. Nexperia operates factories worldwide, including in the UK.
The development threatens to raise tensions between the European Union and China, which have been strained over trade and Beijing's ties with Russia. Wingtech, Nexperia's owner, has stated that it will take actions to protect its rights and seek government support. "We are disappointed by this decision and believe it is not in line with international business practices," a spokesperson for Wingtech said.
The Dutch government's move draws from multiple sources, including reports from The Hague and Wingtech. According to experts, the decision may be seen as an effort to address concerns about China's growing influence in the global semiconductor market. "This development highlights the need for European countries to take control of their own supply chains," said Dr. Maria Rodriguez, a leading expert on international trade.
The current status of Nexperia remains unclear, with Wingtech stating that it will seek government support to protect its rights. The Dutch government has not commented on what specific actions it plans to take next. However, the move is seen as an effort to secure Europe's semiconductor supply and prevent potential shortages in case of an emergency.
Background information suggests that Nexperia was acquired by Wingtech in 2019 for $1.3 billion. Since then, concerns have been raised about China's growing influence in the global semiconductor market. The Dutch government's decision may be seen as a response to these concerns.
In conclusion, the Dutch government's takeover of Nexperia marks an escalation in tensions between the European Union and China over trade and economic security. As the situation unfolds, it remains to be seen how this development will impact the global semiconductor market and the automotive and electronics industries.
This story was compiled from reports by BBC Technology, Multi-source: BBC Technology and BBC Technology.
