Netherlands Takes Emergency Action Against China’s Wingtech-Owned Nexperia Over Technology Leakage Concerns

Dutch Economic Affairs Minister Secures Control Over Management
China Protests "Geopolitical Prejudice"

The Dutch government has taken emergency measures to effectively seize control of a domestic semiconductor company acquired by a Chinese firm, further intensifying the conflict between the West and China over advanced technology.

According to foreign media outlets such as the Financial Times on the 13th, the Dutch government announced on the 12th (local time) that it had invoked the 'Goods Availability Act' for the first time in history, targeting Nexperia, a semiconductor company headquartered in Nijmegen. The measure was actually enacted on September 30, but was only made public on this day.

With the activation of this law, the Dutch Minister of Economic Affairs has gained the authority to suspend or cancel decisions made by Nexperia's board of directors. However, routine business activities such as production are still permitted. The Dutch government explained, "We have identified serious governance deficiencies and risky behavior at Nexperia," adding, "This measure is intended to prevent the company's semiconductor products from becoming unavailable in an emergency situation."

Analysts say the move reflects the Dutch authorities' assessment that there is a possibility of core technology being transferred to its Chinese parent company, Wingtech. On September 30, Wingtech disclosed through the Shanghai Stock Exchange that it had received an order from the Dutch government prohibiting any changes to Nexperia and its subsidiaries' assets, intellectual property, or personnel for the next year.

Subsequently, the Amsterdam Court of Appeal suspended the directorships of Wingtech founder and chairman Zhang Xuezheng at both Nexperia and its holding company, 'Nexperia Holding,' and appointed an independent foreign interim director to assume voting and representative rights. Most of Nexperia's shares are now under the custody of a court-appointed administrator.

Nexperia was established in 2017 when the standard products division of NXP Semiconductors, which had spun off from Philips Semiconductors, became independent. It was acquired by China's Wingtech in 2019. Its main products, such as transistors, diodes, and TVS (transient voltage suppressor) devices, are widely used in automotive and consumer electronics components.

Wingtech strongly objected to the measure, calling it "the product of unfounded geopolitical prejudice" and claiming that it "blatantly violates the market economy and fair competition principles advocated by the European Union."

The Chinese government also responded immediately. Foreign Ministry spokesperson Lin Jian stated, "We oppose actions that generalize the concept of national security to target specific countries and companies," and urged, "Uphold market principles and do not politicize economic issues." He further warned, "China will safeguard the legitimate rights and interests of its companies."