The Dutch government has imposed sweeping restrictions on Chinese-owned chipmaker Nexperia, citing “serious governance shortcomings” at the semiconductor manufacturer.
The minister of economic affairs Vincent Karremans, announced late on Sunday (12 October) that he had invoked the Goods Availability Act on 30 September to prevent “a situation in which the goods produced by Nexperia (finished and semi-finished products) would become unavailable in an emergency.”
Under the measure, Nexperia is barred for one year from moving company assets, appointing new executives, or making key strategic decisions without explicit government approval.
The ministry did not specify what governance shortcomings triggered the decision.
Nexperia, formerly part of Dutch chipmaker NXP, was acquired by Chinese holding company Wingtech in 2019 and produces large volumes of standard semiconductors used in cars, consumer electronics and other industries, making it a crucial link in Europe’s technology supply chains.
The Dutch move came just hours after Wingtech filed a complaint at the Shanghai Stock Exchange, accusing the Netherlands of freezing Nexperia's assets.
In a WeChat statement (since deleted), it called the move a “politicised coup” orchestrated by the Dutch government and “foreign executives.”
But Dutch newspaper NRC reported on Sunday that the measure was partly driven by fears Nexperia might transfer chip-related know-how to China. Insiders indicated that a leak of sensitive intellectual property appeared imminent.
The Amsterdam Enterprise Chamber has also suspended Nexperia's chief executive Zhang Xuezheng as an emergency measure.
The decision followed an urgent petition filed on 1 October by Nexperia's Dutch chief legal officer, Ruben Lichtenberg, with the support of chief financial officer Stefan Tilger and chief operating officer Achim Kempe — both German nationals.
The three executives asked the court to launch a corporate investigation into Nexperia's governance and to impose immediate provisional measures to protect the company's independence and decision-making.
After a fast-track hearing on 6 October, the court granted one of those measures by suspending Zhang and appointing a temporary non-Chinese executive to replace him.
“The Dutch government's decision to freeze Nexperia's global operations under the pretext of 'national security' constitutes excessive intervention driven by geopolitical bias, rather than a fact-based risk assessment,” the Chinese firm said in its filing.
“We have initiated all available legal and diplomatic measures to demand that the Dutch government immediately revoke its erroneous order,” it added.
“The semiconductor industry is a product of globalisation. Its future depends on collaboration, not confrontation,” Wingtech said. “Governments should provide a fair, non-discriminatory business environment.”
The Dutch government said it made the “highly exceptional move” to “prevent governance shortcomings” specifically at Nexperia and that the measure is not directed at other companies.
While Nexperia can continue normal production, the government now has the power to block or reverse any of its business decisions.
Company decisions may be overturned “if they are (potentially) harmful to the interests of the company, to its future as a Dutch and European enterprise, and/or to the preservation of this critical value chain for Europe,” the ministry stated.
Following the announcement from The Hague, Wingtech shares fell by the maximum daily limit of 10 percent on the Shanghai Stock Exchange.
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Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.
Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.