Netherlands Seizes Chinese-Owned Nexperia

The Netherlands government has taken control of Wingtech — Nexperia, a Chinese-owned chipmaker, citing risks to the European Union's economic and technological security due to serious governance shortcomings. This 'highly exceptional' move, invoking the Goods Availability Act, restricts Wingtech's control over Wingtech — Nexperia and has led to a 10% drop in Wingtech's shares. The Netherlands aims to prevent Wingtech — Nexperia's chips from becoming unavailable in an emergency, which could pose a risk to Dutch and European economic security. Wingtech has decried the move as 'excessive intervention driven by geopolitical bias' and plans to seek legal remedies and government support. This action comes amid escalating global trade tensions, with China accusing the European Union of protectionism and having previously tightened restrictions on rare earth elements exports. The United States had also placed Wingtech on its 'entity list' in December 2024 due to national security concerns.