The Dutch authorities has intervened to take efficient management of know-how group Nexperia, which is owned by Chinese language group Wingtech Expertise.
The choice comes amid a rising rift between China and the West over the event of know-how corresponding to laptop chips and semiconductors, that are important elements for the manufacture of synthetic intelligence (AI) know-how.
Right here is extra about what the Dutch authorities introduced, why and what occurs subsequent.
What has the Dutch authorities introduced?
In a press release launched on Sunday, the Dutch Ministry of Financial Affairs stated it had invoked the “extremely distinctive” Items Availability Act to intervene and take management of Nexperia on September 30.
The Items Availability Act permits the Netherlands to intervene in privately owned firms in distinctive circumstances, corresponding to if the federal government perceives a risk to the nation’s financial safety or whether it is vital to make sure that crucial items stay out there.
Why has the Dutch authorities taken this step?
The transfer adopted an emergency listening to by the Dutch Enterprise Chamber on October 7, which concluded that there could also be “legitimate causes to doubt sound administration at Nexperia underneath the management of former CEO Zhang Xuezheng”, a press release from the corporate stated.
The Dutch Enterprise Chamber is a particular division of the Amsterdam Courtroom of Enchantment, which hears company legislation circumstances and different issues that would have main social or monetary penalties.
In its assertion, the federal government stated the intervention had been carried out “attributable to severe administrative shortcomings” at Nexperia, which “posed a risk to the continuity and safeguarding on Dutch and European soil of essential technological information and capabilities”.
It claimed that the intervention would guarantee Nexperia’s completed and semi-finished merchandise would stay out there in case of an emergency.
The ministry added that “dropping these capabilities might pose a danger to Dutch and European financial safety.”
Following this intervention, it stated, “the corporate’s common manufacturing course of can proceed.”
Nevertheless, it added, “Based mostly on the order, choices inside the firm could be blocked or reversed if they’re (doubtlessly) dangerous to the corporate’s pursuits, its future as a Dutch and European firm, and/or the preservation of this significant worth chain for Europe.”
The assertion stated that “concerned events” can attraction the choice in courtroom.
What’s Nexperia and the way has it responded to the federal government motion?
Nexperia is a worldwide semiconductor producer headquartered in Nijmegen, the Netherlands. It emerged because of electronics group Philips’ buy of London-based Mullard Radio Valve Firm and Hamburg-based Valvo within the Twenties, in the end forming Philips’ semiconductor operation. In 2006, Philips spun off its semiconductor division, which grew to become NXP Semiconductors, and this was later bought to a consortium of traders led by Beijing Jianguang Asset Administration (JAC Capital). Wingtech acquired Nexperia from that consortium for $3.63bn in 2018.
In line with its web site, Nexperia employs 12,500 folks in Europe, Asia and the USA.
Nexperia’s manufacturing web site spans greater than 80,000 sq. metres (861,000dsq toes) and has the capability to construct greater than 50 billion elements yearly. It additionally has gross sales places of work and research-and-development websites in China.
On Tuesday, Nexperia introduced that it had suspended Zhang, founding father of Wingtech, as a director and eliminated him as chief government officer (CEO). It has appointed Stegan Tilger, chief monetary officer (CFO), as interim CEO.
“Because of the similar severe managerial shortcomings, the Dutch Ministry of Financial Affairs noticed that Nexperia’s operations in Europe had been being compromised in an unacceptable method. This case raised broader considerations for the Dutch authorities in regards to the availability of semiconductor merchandise crucial to the European trade,” Nexperia’s assertion stated.
“The mixture of Zhang Xuezheng’s behaviour as CEO and (oblique) shareholder, in addition to considerations in regards to the semiconductor product availability within the Netherlands and Europe, in the end led the Dutch authorities to intervene with an distinctive emergency order on the premise of the Items Availability Act.”
The assertion added that the federal government’s order has additionally prohibited Nexperia from relocating firm belongings, firing present executives or making vital choices with out specific authorities approval for one yr.
Nexperia stated it’s assured its every day operations will proceed as normal.
What has led as much as all this?
On October 9, China tightened export controls for crucial rare-earth metals, citing nationwide safety pursuits. Overseas firms should now receive approval from Beijing earlier than they will export the named rare-earth metals or any merchandise that comprise them. Exporters should inform the federal government how the merchandise will likely be used.
The US is a significant client of Chinese language rare-earth metals, that are crucial for its defence trade. Following China’s announcement about new export restrictions, US President Donald Trump responded by threatening to impose a new 100 percent trade tariff on China.
Apart from getting used for the manufacture of smartphones, electrical automobiles and weapons, rare-earth metals are additionally used within the manufacture of semiconductors, that are important for the event of synthetic intelligence (AI) know-how.
The US and its Western allies in Europe have, in recent times, handed laws proscribing China’s entry to Western semiconductor know-how, fearing that China might reverse-engineer and manufacture the know-how, shifting forward within the technological race.
In 2022, former Democratic US President Joe Biden restricted China’s access to US semiconductors. The brand new guidelines prolonged restrictions on chipmaking instruments being bought to industries which help the semiconductor provide chain. They blocked these industries from accessing US technical experience, in addition to the important thing elements required to construct the machines that produce microchips.
The US additional tightened these restrictions in October 2023 and, once more, in December 2024.
On September 29, 2025, the US Bureau of Trade and Safety prolonged US export management restrictions to all teams that are a minimum of 50 percent-owned by a number of entities on the US Entity Listing, an inventory of overseas organisations and firms believed to be collaborating in, or are at vital danger of collaborating in, actions that go towards US nationwide safety or overseas coverage pursuits. These entities are topic to sanctions, export restrictions or licensing necessities. Whereas Nexperia itself is just not on the checklist, Wingtech was added in December 2024.
Then, on October 4, China’s Ministry of Commerce introduced export controls stopping Nexperia China and its subcontractors from exporting sure completed elements and sub-assemblies made in China.
“Nexperia is actively partaking with the Chinese language authorities to acquire an exemption from these restrictions and has deployed all out there assets to that finish,” the Nexperia assertion stated.
“Whereas Nexperia has made enough preparations to make sure enterprise continuity – and because the BIS rule offers for a 60-day grace interval – we’re assured {that a} resolution will likely be discovered,” Nexperia stated in its assertion on Tuesday.
Compounding all this, earlier within the yr, US President Donald Trump imposed tariffs of 145 % on Chinese language imports to the US. China retaliated with a tariff of 125 % on US items. Each nations then decreased their tariffs for 90 days in May to permit for commerce talks. In August, the 2 agreed to a different 90-day pause, with the latest spherical of talks happening between US and Chinese language officers in Spain final month.
However the US has additionally imposed restrictions on most Chinese language automobiles from being bought within the US. These embody excessive tariffs on Chinese language-made electrical autos.
Along with its commonplace 10 % automotive import obligation, the EU introduced final yr that it could impose a spread of extra tariffs on electrical autos, from 7.8 % for Tesla autos to 35.3 % on China’s state-owned SAIC [Shanghai Automotive Industry Corporation] autos.
How have Wingtech and China responded to the Dutch authorities announcement?
Wingtech launched a social media assertion saying it “firmly opposes the politicisation of business issues”.
Within the publish, it deemed the Dutch authorities’s transfer “an extreme intervention primarily based on geopolitical bias relatively than a fact-based danger evaluation” that’s primarily based on the “unfounded pretext of nationwide safety”.
Shares in Wingtech have plummeted by 10 % on the Shanghai Inventory Alternate for the reason that announcement. Because of this, Wingtech was pressured to clarify the scenario to the alternate, saying that the Dutch authorities’s determination “briefly restricts” its management over Nexperia.
Beijing “persistently opposes the overstretching of nationwide safety ideas and discriminatory practices focusing on firms from particular nations”, Lin Jian, spokesperson for the Chinese language Ministry of Overseas Affairs, stated on Monday.
“Related nations ought to genuinely uphold market ideas and keep away from politicising financial and commerce points.”
How have others reacted?
The European Union has been carefully coordinating with Dutch officers and can now work with the Netherlands to determine what to do subsequent to guard vital tech capabilities in Europe, in line with European Fee spokesperson Olof Gill.
