The Hague, Netherlands – October 13, 2025 – In a significant move underscoring escalating global tensions over critical technology and economic security, the Dutch government has taken unprecedented control over Nexperia, a Netherlands-based semiconductor manufacturer owned by China’s Wingtech Technology. The intervention, announced Monday, invokes emergency powers to safeguard crucial technological knowledge and capabilities within Europe from potential risks of leakage to foreign entities.
Dutch Government Assumes Oversight of Nexperia
The Dutch Ministry of Economic Affairs invoked the “Goods Availability Act”—a rarely used piece of legislation dating back to 1952—to implement the takeover. This marks the first time the act has been employed, signaling the exceptional nature of the situation. The decision stems from “recent and acute signals of serious governance shortcomings and actions” within Nexperia, which the government asserts pose a threat to the continuity and safeguarding of vital technological knowledge and capacity on Dutch and European soil.
As a result of the intervention, the Dutch Minister of Economic Affairs can now block or reverse managerial decisions made by Nexperia if they are deemed harmful to the company’s interests, its future as a Dutch and European enterprise, or the preservation of its critical role in Europe’s semiconductor value chain. This extraordinary step allows the government to ensure that products manufactured by Nexperia, including essential chips for the automotive and consumer electronics sectors, remain available, particularly in the event of an emergency.
Suspension of CEO and Key Leadership Changes
Following a court ruling by the Amsterdam Enterprise Chamber on October 7, Nexperia’s CEO and Wingtech CEO, Zhang Xuezheng, has been suspended from his roles, citing “well-founded reasons to doubt” the firm’s management conduct under Dutch civil law. In his place, Dutch executive Guido Dierick has been appointed with decisive voting authority, and control of almost all Nexperia shares has been placed under a Dutch lawyer for management oversight. Despite these significant changes in governance, Nexperia’s regular production processes are expected to continue uninterrupted.
Background: National Security and Economic Concerns
Nexperia, headquartered in Nijmegen, Netherlands, was originally the Standard Products business unit of Philips Semiconductors before being acquired by China’s Wingtech Technology in 2018 for approximately $3.63 billion. Wingtech is partially owned by China’s State-owned Assets Supervision and Administration Commission (SASAC), raising concerns about potential foreign state influence and technology transfer.
The Dutch government’s action is part of a broader international trend of Western nations scrutinizing and tightening controls over Chinese investments in strategically critical technology sectors. Previous instances include the UK government ordering Wingtech-owned Nexperia to divest its acquisition of the Newport Wafer Fab in 2022 due to national security risks. Furthermore, Wingtech itself was added to the U.S. Entity List in December 2024 for allegedly aiding China’s acquisition of sensitive semiconductor capabilities, leading to its own export restrictions.
International Repercussions and Nexperia’s Response
Wingtech Technology has vehemently criticized the Dutch government’s intervention, describing it as “excessive interference driven by geopolitical bias, rather than a fact-based risk assessment”. The company has stated its intent to pursue legal remedies and seek support from Chinese government departments to protect its interests. The announcement led to a sharp decline in Wingtech’s shares on the Shanghai stock exchange.
Nexperia is also directly impacted by evolving international trade policies. The company confirmed it has been affected by new U.S. export control measures that will bar American firms from supplying restricted technologies to Nexperia, as U.S. rules now apply to companies at least 50% owned by entities on the Entity List. Additionally, Nexperia has faced export restrictions from the Chinese government on certain components and sub-assemblies manufactured in China since October 4, 2025, leading the company to engage in talks with Chinese authorities for exemptions.
The Dutch intervention in Nexperia highlights the increasingly complex intersection of national security, economic strategy, and global technology trade, a trending topic in current international news. As the semiconductor industry continues to be a critical battleground in geopolitical competition, such actions will likely shape the future landscape of global technology supply chains.
