In a move that sent shockwaves through the global technology sector, the Dutch government announced on October 13, 2025, that it would seize control of Nexperia, a major semiconductor maker based in the Netherlands and owned by China’s Wingtech Technology Co. The intervention, described by officials as “highly exceptional,” marks the first time the Netherlands has invoked its Cold-War era Goods Availability Act to ensure continued access to critical chip supplies amid escalating geopolitical tensions.
The Dutch Ministry of Economic Affairs cited “serious administrative shortcomings and actions” within Nexperia as the catalyst for the takeover, raising concerns about the potential transfer of sensitive technology to China. According to Reuters, the government now has sweeping authority to block or reverse management decisions at the company if they are deemed risky to national interests. This means Nexperia cannot transfer assets or hire new executives without prior government approval—a level of oversight rarely seen in the private sector.
The Goods Availability Act, invoked in September but only made public this week, allows the Dutch government to intervene in private companies to secure the availability of vital goods in emergencies. As explained in CNN’s coverage, the Act was triggered “to prevent a situation in which the goods produced by Nexperia (finished and semi-finished products) would become unavailable in an emergency.” The government’s statement highlighted that “recent and acute signals of serious governance shortcomings and actions” at Nexperia posed a threat to the “continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities.”
Nexperia, once a subsidiary of Philips, is a key global supplier of basic chips such as diodes and transistors. Its products are essential for a range of industries, from automotive to consumer electronics. The Dutch government’s move underscores the growing importance of maintaining control over strategic technology assets, especially as the world becomes ever more reliant on semiconductors for everything from cars to smartphones.
The reaction from Wingtech was swift and pointed. In a statement that was later deleted but archived by the Chinese policy blog Pekingnology, the company accused the Dutch government of “excessive intervention driven by geopolitical bias, rather than a fact-based risk assessment.” Wingtech insisted that since acquiring Nexperia in 2019, it has “strictly abided by the laws and regulations of all jurisdictions where it operates, maintaining transparent operations and sound governance,” and it employs “thousands of local staff” across its sites in the Netherlands, Germany, and Britain. Nexperia itself stated it “complies with all existing laws and regulations, export controls and sanctions regimes,” and is in regular contact with authorities, but declined further comment.
The government’s order temporarily restricts Wingtech’s control over Nexperia, suspending chairman Zhang Xuezheng from the board and requiring the appointment of an independent, non-Chinese board member with a deciding vote. According to a corporate filing made by Wingtech to the Shanghai Stock Exchange, Nexperia’s daily operations will continue for now, though the full impact of the intervention remains unclear. The filing also confirmed that changes to the company’s assets, business, or personnel are suspended for up to a year.
Markets responded sharply to the news. Wingtech’s shares plunged by the maximum daily limit of 10% on the Shanghai Stock Exchange following the Dutch announcement, reflecting investor anxiety over the growing rift between China and the West on technology transfer and supply chain security. The Financial Times noted that this intervention is part of a broader trend, with governments increasingly pressuring companies to divest assets deemed geopolitical risks.
The Dutch action comes at a time of rising trade tensions between China and the European Union, and in the wake of Beijing’s recent decision to tighten restrictions on the export of rare earth elements and magnets—materials vital to Europe’s automotive and electronics industries. The Netherlands has already been a focal point in the global chips war: it is home to ASML, the world’s only supplier of extreme ultraviolet lithography machines, which are essential for manufacturing advanced semiconductors. In recent years, the Dutch government has aligned more closely with U.S. export control policies, restricting the sale of high-end chipmaking equipment to China and tightening scrutiny over Chinese investments in the tech sector.
The United States’ own actions may have influenced the Dutch decision. In late 2024, the U.S. placed Wingtech on its entity list, effectively blacklisting the company amid broader efforts to curb Chinese advances in key technologies. The move by the Dutch government to assert tighter control over Nexperia is seen as a signal to both Brussels and Washington that Europe is serious about safeguarding its technological sovereignty and supply chain resilience.
The stakes are high for all parties involved. For the Dutch government, the intervention is about more than just one company; it’s about setting a precedent for protecting Europe’s strategic industries. For Wingtech and other Chinese investors, it raises the specter of further restrictions and possible retaliatory measures from Beijing. And for the wider semiconductor industry, the move is a reminder of just how deeply technology and geopolitics are now intertwined.
Industry analysts warn that such interventions could become more common as countries seek to insulate themselves from global supply chain shocks and foreign influence. The European Union, for its part, is intensifying cooperation with the United States on semiconductor supply chain resilience, and other European nations may soon follow the Dutch example. As Politico pointed out, Europe finds itself caught in a “tit-for-tat chips war” between the U.S. and China, with each side ramping up efforts to secure their own technological futures.
Not everyone is convinced that government intervention is the best solution. Critics argue that such moves risk stoking further trade tensions and could backfire if China decides to retaliate against European firms. Others, however, see the Dutch government’s action as a necessary step to protect national security and industrial sovereignty in an era of intensifying global competition.
This isn’t the first time Nexperia has come under scrutiny. In 2023, the Netherlands investigated its proposed acquisition of chip startup Nowi, though the deal was eventually approved. But the latest intervention marks a decisive shift in how Europe approaches foreign ownership and control of critical technology assets.
As the dust settles, all eyes will be on how the Dutch government manages its new role at Nexperia, and whether other countries will follow suit. For now, the message from The Hague is clear: when it comes to chips, Europe is prepared to put its foot down to protect its interests.
