Netherlands moves to curb China-owned Nexperia over security concerns and tech sovereignty risks.

The Dutch government has taken the rare step of intervening in Chinese-owned chipmaker Nexperia, citing risks to national and European economic security. The Ministry of Economic Affairs announced on Sunday that the decision was made under the Goods Availability Act, a law allowing state action when essential technologies or supplies face potential threats. Authorities said the move followed “acute signals of serious governance shortcomings” within Nexperia and aimed to ensure the continuity of crucial semiconductor production in emergency situations. The government emphasized that operations would continue normally but warned that Nexperia’s activities could jeopardize “the safeguarding on Dutch and European soil of crucial technological knowledge and capabilities.”

Nexperia, headquartered in the Netherlands, manufactures semiconductors used in vehicles and consumer electronics. It operates facilities worldwide, including one in Stockport, UK, and previously owned the Newport, Wales plant, which it was forced to sell following national security concerns raised by UK lawmakers. Nexperia’s Chinese parent company, Wingtech, responded on Monday, stating it would “take actions to protect its rights” and seek support from the Chinese government. Following the announcement, Wingtech’s shares dropped nearly 10% on the Shanghai stock exchange. Wingtech is already on the US “entity list,” which restricts American companies from exporting goods to designated firms without special approval. In September, the US further expanded its export curbs to include all companies majority-owned by Chinese entities.

The Dutch government has not disclosed specific details behind its latest intervention, but officials said the decision reflects broader concerns about safeguarding Europe’s technological independence amid growing tensions between the European Union and China, particularly over trade and Beijing’s ties with Russia.