Dutch Government Takes Control of Nexperia to Safeguard Chip Technology

2025-11-06 semicon

Amsterdam, Thursday, 6 November 2025.
The Netherlands intervened in Chinese-owned Nexperia, invoking a 1952 law to prevent military use of chip technology, amidst escalating tensions with China.

Background of the Intervention

On 30 September 2025, the Dutch government invoked the Goods Availability Act of 1952 to regain control over Nexperia, a semiconductor company originally based in the Netherlands but now under Chinese ownership through Wingtech Technology. This action was driven by concerns about the unauthorized transfer of sensitive technology to China and governance changes that threatened the company’s independence [1][2].

Implications and Reactions

The intervention was prompted by allegations that Nexperia’s CEO, Zhang Xuezheng, was involved in stealing trade secrets from a British facility and planning to relocate production to China. This move sparked significant diplomatic tensions between the Netherlands and China, with the latter accusing the Dutch government of ‘economic banditry’ and ‘discrimination against Chinese enterprises’ [2][3]. In response, China imposed export restrictions on Nexperia’s chips, which are crucial for European automakers [4][5].

Economic and Technological Impact

Nexperia is a key player in the semiconductor industry, producing over 100 billion chips annually for automotive and consumer electronics. The company’s chips are integral to the supply chains of major European car manufacturers such as Volkswagen and BMW. The disruption threatened to halt production lines across Europe, but a recent easing of export controls by China has temporarily averted a worst-case scenario [6][7].

Future Prospects and Strategic Considerations

The crisis underscores the intricate link between technology, innovation, and geopolitics. Experts emphasize the need for Europe to bolster its semiconductor supply chain resilience and reassess its economic security policies. The Dutch intervention serves as a reminder of the vulnerabilities in global supply chains and the strategic importance of safeguarding technological assets [8][9].

Bronnen

national security chip technology