Dutch authorities takes management of China-owned chip agency

The Dutch authorities has taken management of Nexperia, a Chinese language-owned chipmaker based mostly within the Netherlands, in a bid to safeguard the European provide of semiconductors for automobiles and different digital items and shield Europe’s financial safety.

The Hague mentioned it took the choice because of “severe governance shortcomings” and to stop the chips from changing into unavailable in an emergency.

Nexperia’s proprietor Wingtech mentioned on Monday that it might take actions to guard its rights and would search authorities assist.

The event threatens to boost tensions between the European Union and China, which have elevated in current months over commerce and Beijing’s relationship with Russia.

In December 2024, the US authorities positioned Wingtech on its so-called “entity checklist”, figuring out the corporate as a nationwide safety concern.

Underneath the rules, US corporations are barred from exporting American-made items to companies on the checklist until they’ve particular approval.

Within the UK, Nexperia was compelled to promote its silicon chip plant in Newport, after MPs and ministers expressed nationwide safety issues. It at the moment owns a UK facility in Stockport.

The Dutch Financial Ministry mentioned it made the “extremely distinctive” determination to invoke the Items Availability Act over “acute indicators of great governance shortcomings” inside Nexperia.

“These indicators posed a menace to the continuity and safeguarding on Dutch and European soil of essential technological information and capabilities,” the ministry mentioned in a press release.

“Dropping these capabilities may pose a threat to Dutch and European financial safety.”

The assertion didn’t element why it thought the agency’s operations have been dangerous. A spokesperson for the minister of financial affairs informed the BBC there was no additional info to share.

The measures are aimed to maintain European chip provides flowing and shield Dutch mental property, mentioned EU-China researcher Sacha Courtial.

In a disaster, a Chinese language-owned firm may come underneath strain from Beijing to halt provides or prioritise gross sales to China, crippling European industries like carmakers and electronics producers, he mentioned.

The Hague’s transfer places financial safety “over free-market funding ideas”, in what may pave the way in which for different governments to observe, mentioned Mr Courtial from the Jacques Delors Institute.

The Items Availability Act is designed to permit the Hague to intervene in corporations underneath distinctive circumstances. These embody threats to the nation’s financial safety and to make sure the provision of essential items.

Underneath the order, the Dutch Minister of Financial Affairs, Vincent Karremans, may reverse or block Nexperia’s choices in the event that they have been probably dangerous to the corporate’s pursuits, to its future as a enterprise within the Netherlands or Europe, or to make sure provide stays obtainable in an emergency.

The Dutch authorities added the corporate’s manufacturing can proceed as regular.

“This measure is meant to mitigate that threat,” the ministry mentioned.

Shanghai-listed shares in Nexperia’s mother or father firm Wingtech fell by 10% on Monday morning.

A Nexperia spokesperson mentioned the corporate “complies with all current legal guidelines and rules, export controls and sanctions regimes,” and had no additional remark.

In a press release in Mandarin, Wingtech mentioned its operations have been persevering with uninterrupted and it remained in shut communication with its suppliers and prospects.

Wingtech mentioned in a inventory submitting that the corporate’s chairman, Zhang Xuezheng, was suspended from Nexperia’s boards by an Amsterdam court docket order earlier this month.

The corporate was additionally in talks with legal professionals about potential authorized treatments, it added.

The BBC has additionally contacted the Chinese language embassies within the Netherlands and Brussels.