THE HAGUE – In a rare and forceful intervention, the Dutch government has taken control of Nexperia, a Chinese-owned semiconductor firm headquartered in the Netherlands, citing “serious governance shortcomings” and threats to Europe’s economic and technological security. The move underscores the growing willingness of European governments to prioritize economic sovereignty over open-market principles in the face of escalating geopolitical competition.
The Dutch Ministry of Economic Affairs announced it had activated the Goods Availability Act, an emergency law enabling state intervention in critical industries. The ministry said it aimed to ensure the continuity of chip production vital for European carmakers and electronics manufacturers, and to safeguard Dutch intellectual property.
“Losing these capabilities could pose a risk to Dutch and European economic security,” the ministry stated.
Under the order, Economic Affairs Minister Vincent Karremans now has authority to overturn or block Nexperia’s strategic decisions if deemed detrimental to national or European interests. Production at the company’s facilities will continue as normal.
Tensions Between The Hague and Beijing
The action has triggered strong reactions from Beijing and Chinese industry groups. The China Semiconductor Industry Association expressed “serious concern,” describing the decision as “selective and discriminatory” against Chinese firms operating abroad and warning it undermines global trade norms.
Nexperia’s parent company, Wingtech Technology, listed in Shanghai, denounced the Dutch decision and said it would “take all necessary steps to protect its rights,” while maintaining that operations were continuing uninterrupted. Shares of Wingtech fell by nearly 10 percent following the announcement.
The development comes amid intensifying transatlantic scrutiny of China’s role in the global semiconductor supply chain. In December 2024, the U.S. Department of Commerce placed Wingtech on its Entity List, effectively barring U.S. firms from exporting American-made technology to the Chinese manufacturer without a special license.
In the United Kingdom, Nexperia was forced to sell its Newport chip plant in 2022 after British lawmakers raised national security concerns, though it still operates a smaller site in Stockport.
Europe’s New Economic Realism
Analysts say the Dutch decision marks a significant moment in Europe’s evolving approach to economic security.
“This move signals that The Hague is placing strategic control and resilience above free-market investment principles,” said Sacha Courtial, an EU-China researcher at the Jacques Delors Institute. “It could set a precedent for other European governments to follow.”
European policymakers have grown increasingly wary of China’s leverage over critical technologies. EU officials in Brussels and Paris have echoed concerns that Chinese-owned firms could come under political pressure from Beijing during a crisis, potentially cutting off supplies to Europe.
The Dutch government’s move is aligned with a broader European Union strategy to reduce dependence on China for advanced technology, rare earth minerals, and critical supply chains—a strategy closely coordinated with Washington.
A New Front in the Global Tech Rivalry
The Nexperia case adds to mounting friction between China and the West over semiconductors, a sector central to both economic and military competitiveness. As the U.S. and Europe tighten export controls and restrict Chinese access to chipmaking tools, Beijing has accused Western governments of politicizing trade and stifling competition.
For now, The Hague insists its intervention was “highly exceptional.” Yet to many observers, it reflects a broader geopolitical shift: Western nations moving from reliance to resilience in critical technologies — and from openness to strategic protectionism. (zai)