The Dutch government has enacted an emergency law to gain control over the semiconductor manufacturer Nexperia, which is owned by the Chinese firm Wingtech. This unprecedented action stems from concerns about governance issues that entail risks to the economic security of the Netherlands and Europe.
Control of Nexperia Under Emergency Legislation
On October 13, 2025, the Netherlands invoked the Goods Availability Act (Wet beschikbaarheid goederen), allowing the state to intervene in corporate management while ensuring continued production. Authorities deemed this step necessary to prevent potential shortages of essential semiconductor products.
Background of Nexperia
- Nexperia is headquartered in Nijmegen, Netherlands.
- The company specializes in power and signal chips for automobiles and consumer electronics.
- It has subsidiaries in various countries worldwide.
Wingtech, which acquired Nexperia in 2018, operates through its investment entity, Yucheng Holding. The Dutch Ministry of Economic Affairs has highlighted the need to safeguard critical technology and expertise within Europe.
Impact on Financial Markets
Following the announcement of government intervention, Wingtech shares fell approximately 10% during trading in Shanghai. While Wingtech stated that its control rights at Nexperia were temporarily limited, it retained the economic benefits of ownership and indicated plans to explore legal options against the Dutch government.
National Security Measures in Technology
The intervention is part of a larger trend in Europe, where national security tools are increasingly used to regulate ownership in critical technology sectors. In 2022, the United Kingdom instructed Nexperia to divest its Newport Wafer Fab due to similar security concerns. Additionally, the United States implemented expanded export controls affecting Wingtech and its affiliates in 2024.
Continued Oversight and Future Actions
While production at Nexperia will proceed as normal, the Dutch government now has extensive authority over significant corporate decisions for a limited time. Affected parties have the right to challenge these measures in court as authorities evaluate the necessity of longer-term solutions.
This action illustrates the growing cautious approach of Western nations regarding semiconductor supply chains amid escalating geopolitical tensions and the increasing importance of preserving technological capabilities on domestic soil.
