A hot potato: The Dutch government has invoked a post – World War II law to take control of Nexperia, a Chinese-owned chipmaker, in a move underscoring growing global tensions over semiconductor security. Officials say the intervention was necessary to protect national and European interests, reflecting a broader shift toward tighter state oversight of strategic technologies.
The chip industry is beginning to resemble a battlefield, and governments around the world are taking preemptive action to avoid being caught off guard. Dutch officials have now announced that they will intervene in decisions made by Nexperia, a major producer of less advanced components such as diodes, bipolar transistors, MOSFETs, and other logic devices.
The Hague invoked the Goods Availability Act (Wbg), a Dutch law introduced in 1952 that gives the government authority to secure essential goods during a national emergency. The Netherlands' Minister of Economic Affairs said the Wbg was an exceptional response to Nexperia's governance shortcomings.
The company is reportedly threatening The Hague's ability to protect "crucial" technological components for both the Netherlands and the European Union. Losing these capabilities, the government said, could quickly become a risk to Dutch and European economic prospects.
Officials did not provide specific details about the alleged violations by Nexperia. Under the Wbg, the government can now reverse or block any decision by the company's board that could affect its manufacturing capabilities. Production will continue as usual, the ministry said, while potential supply chain risks are being closely monitored and mitigated.
Nexperia is one of the largest chip manufacturers in the world and a subsidiary of Wingtech Technology. The Shanghai-listed company is partly controlled by the State-owned Assets Supervision and Administration Commission of the State Council, a special body within China's government.
Nexperia owns manufacturing plants in the Netherlands, Germany, and England, and became a major concern for Western governments after the United States placed Wingtech on the Department of Commerce's "Entity List." Companies on this list are identified as potential national security threats and must obtain special approval before exporting US-made technology or products.
Before The Hague's intervention, Nexperia had already been forced by the United Kingdom to sell its manufacturing plant in Newport. The Dutch government said the company can appeal the decision, but the pressure has been building for some time. Earlier this month, Nexperia's chairman Zhang Xuezheng was suspended by order of an Amsterdam court.