In a unprecedented escalation of Western scrutiny on Chinese tech investments, the Dutch government has invoked the rarely used “Goods Availability Act” to assume temporary control over Nexperia, a major semiconductor manufacturer headquartered in Nijmegen, Netherlands, and fully owned by China’s Wingtech Technology since its $3.63 billion acquisition in 2019. The move, announced on October 12, 2025, stems from “acute signals of serious governance shortcomings” at the company, which the Dutch Ministry of Economic Affairs said posed risks to the continuity of crucial technological knowledge and capabilities on Dutch and European soil, potentially allowing sensitive chip designs to flow to Wingtech.

Nexperia, formerly part of Philips’ chip division and now a global leader in diodes, transistors, and advanced battery-efficient semiconductors, employs over 12,500 people worldwide and supplies essential components to Europe’s automotive and consumer electronics sectors; the intervention ensures production continues uninterrupted while empowering the Economy Minister to block or reverse board decisions deemed harmful.

This follows a Dutch court removing a Nexperia management team member and aligns with broader geopolitical frictions, including Wingtech’s 2024 U.S. “entity list” designation for alleged aid in China’s semiconductor pursuits and a 2022 UK order forcing Nexperia to divest its Newport wafer fab stake on similar security grounds.

Wingtech decried the action as “excessive interference driven by geopolitical bias,” vowing to protect its rights, with its Shanghai shares plunging 10% on October 13. While the Dutch ministry denied U.S. involvement, the timing coincides with tightened American export controls, highlighting deepening EU-China tensions over high-tech supply chains and intellectual property.

The West’s suspicion of Chinese tech firms, stems from national security concerns, geopolitical tensions, and economic competition. The fears of intellectual property theft, as Chinese firms are often accused of acquiring sensitive technologies through acquisitions or partnerships and potentially transferring them to China state-linked entities. For instance, Nexperia’s ownership by Wingtech Technology raised alarms in the Netherlands due to risks of critical semiconductor knowledge leaking to China, especially given Wingtech’s designation on the U.S. “entity list” for supporting China’s military-industrial complex. Additionally, Chinese firms are often perceived as extensions of the Chinese Communist Party, with opaque governance and potential for state influence, raising concerns about data security and surveillance in critical infrastructure like telecom or semiconductors. The West also worries about over-reliance on Chinese-controlled supply chains, particularly in strategic sectors like 5G, AI, and chip manufacturing, prompting actions like export controls, divestment orders, and, in Nexperia’s case, direct government intervention. These suspicions are amplified by broader U.S.-China tech rivalry and Europe’s push for technological sovereignty, as seen in tightened investment screenings and restrictions on Chinese acquisitions in sensitive industries.

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