Amsterdam, Netherlands
Reuters
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The Dutch government has taken control of Chinese-owned pc chipmaker Nexperia, ratcheting up tensions with Beijing as a worldwide combat brews over expertise mental property, particularly round semiconductors.
The government stated late on Sunday that it has intervened in Dutch-headquartered Nexperia, which manufactures chips for vehicles and client electronics. It cited worries in regards to the attainable switch of expertise to Nexperia’s Chinese guardian firm, Wingtech.
Amsterdam invoked never-before-used powers underneath a Dutch legislation generally known as the “Availability of Goods Act.” The choice led to a ten% fall in Wingtech’s shares in Shanghai Monday.
The Dutch government is not going to take possession of Nexperia, however it is going to now have the facility to reverse or block administration selections it considers dangerous. The firm’s common manufacturing is constant.
US President Donald Trump is ratcheting up stress on Chinese tech corporations as half of a broader commerce conflict that noticed him threaten 100% tariffs on China’s exports final week.
The United States and the Netherlands usually cooperate intently on pc chip trade export controls. A Dutch Economic Affairs Ministry spokesperson, nevertheless, stated there was no US involvement in its choice relating to Nexperia and the timing was “purely coincidental.”
Washington final month expanded a list of blacklisted firms seen as threats to nationwide safety to incorporate subsidiaries.
Wingtech had already been positioned on the US “entity list” in December 2024 for its alleged function “in aiding China’s government’s efforts to acquire entities with sensitive semiconductor manufacturing capability.”
Nexperia, which is 100%-owned by Wingtech, stated on the time that it will adjust to the US guidelines, although it stated its operations had been stored at arm’s size from its Chinese guardian.
Wingtech referred to as the Dutch government’s intervention in Nexperia, as soon as half of Dutch electronics group Philips, “excessive interference driven by geopolitical bias.”
Wingtech additionally alleged that non-Chinese Nexperia executives had tried to forcibly alter the corporate’s fairness construction by means of authorized proceedings in a “cloaked power grab” on the corporate.
Wingtech stated in a press release that it was consulting with attorneys and in search of government assist to “protect the legitimate rights and interests of the company.”
Nexperia, which Wingtech purchased for $3.63 billion in 2018, stated it complied with all related legal guidelines and laws.
In its assertion, the Dutch government cited points round “crucial technological knowledge” with out elaborating.
“The loss of these capabilities could pose a risk to Dutch and European economic security,” it stated.
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 akin to “wide gap” semiconductors used in electrical settings and helpful for electrical vehicles, chargers and synthetic intelligence knowledge facilities.
Wingtech stated in a submitting to the Shanghai inventory trade Monday that its control over Nexperia can be quickly restricted as a result of Dutch order and courtroom rulings, affecting decision-making and operational effectivity.
Wingtech stated its 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 has had run-ins earlier than with different Western governments over its operations, with Britain ordering it to divest possession of a facility in Newport.