Amsterdam, Netherlands
Reuters
—
The Dutch government has mentioned it’s taking control of Dutch chipmaker Nexperia, which manufactures pc chips for the automobile and client electronics industries, as a consequence of worries in regards to the potential switch of essential know-how to its Chinese guardian firm, Wingtech.
The move prompted a ten% fall in Wingtech’s shares in Shanghai Monday, and the agency mentioned in an announcement it was consulting with attorneys and looking for government help to “protect the legitimate rights and interests of the company.”
The Dutch Ministry of Economic Affairs mentioned late on Sunday that its intervention was “exceptional” and got here in response to “acute signals of serious administrative shortcomings and actions” on the firm.
The move permits the government to reverse or block administration choices it sees as dangerous, however the firm’s common manufacturing might proceed.
“These signals threaten the continuity and safeguarding of crucial technological knowledge and capabilities on Dutch and European soil,” the ministry mentioned. “The loss of these capabilities could pose a risk to Dutch and European economic security.”
Wingtech mentioned in a inventory trade submitting that its control over Nexperia can be quickly restricted because of the Dutch order and courtroom rulings, affecting decision-making and operational effectivity.
Chairman Zhang Xuezheng was suspended from Nexperia’s boards by an Amsterdam courtroom order on October 6, and an impartial non-Chinese individual with a “deciding vote” can be appointed in his place, Wingtech mentioned.
A spokesperson for Nexperia mentioned the corporate adheres to “all existing laws and regulations, export controls and sanction regimes,” and declined additional remark.
Nexperia is one of the world’s largest makers of easy pc chips akin to diodes and transistors, although it additionally develops extra superior applied sciences geared toward utilizing chips to make batteries extra effectively.
Wingtech bought 100% of Nexperia, as soon as half of Dutch agency Philips, for round $3.63 billion in 2018.
Wingtech was positioned on the United States’ “entity list” in December 2024, figuring out it as a nationwide safety concern. Nexperia mentioned on the time that it will adjust to the US guidelines, however that might not significantly impression Nexperia’s operations, which it argues are saved at arm’s size from Wingtech.
However, final month the US expanded entity list rules to robotically embrace subsidiaries which are 50% or extra owned by corporations on the entity record.
It was not instantly clear whether or not that move was linked to the Dutch government motion, although the 2 nations cooperate intently on pc chip trade export controls.