Netherlands Invokes Special Powers Over Chinese-Owned Semiconductor Giant Nexperia

The Dutch government has taken the extraordinary step of invoking its Goods Availability Act to seize temporary authority over Nexperia, a Chinese-owned semiconductor manufacturer based in Nijmegen, citing “serious governance deficiencies” and growing national security concerns over the transfer of critical technology to Beijing-linked entities.

In a statement released by the Ministry of Economic Affairs and Climate Policy, officials said the move was “highly exceptional” and followed “recent and acute signals of serious governance shortcomings” within Nexperia’s leadership structure. The decision marks the first time the Netherlands has activated this law — a measure that enables the government to overrule corporate decisions involving companies deemed vital to the national technological or industrial base.

The ruling grants the Dutch state authority to block, reverse, or suspend management decisions related to asset transfers, research direction, or strategic investments. It effectively places the company’s domestic operations under heightened scrutiny, allowing regulators to intervene if any future corporate moves are seen as a potential threat to Dutch or allied technological security.

Nexperia, which is ultimately controlled by China’s Wingtech Technology Co., immediately condemned the action as “excessive interference driven by geopolitical bias.” Wingtech, a partially state-owned company, filed an appeal in Dutch court and announced that it was seeking assistance from the Chinese government. In a statement to the Shanghai Stock Exchange, Wingtech claimed that the Dutch government’s intervention was “politically motivated” and detrimental to global semiconductor cooperation.

The Netherlands’ decision comes amid escalating tension between Western nations and China over access to critical semiconductor technology — a cornerstone of both modern defense systems and advanced computing industries. The Dutch Military Intelligence and Security Service (MIVD) has repeatedly warned that Chinese cyber-espionage efforts against domestic research institutions and semiconductor firms have intensified in recent years. Intelligence reports have specifically highlighted China’s attempts to target ASML, the Netherlands-based producer of the world’s most advanced photolithography systems — a company essential to the global chipmaking supply chain.

Security officials have described Nexperia as a potential conduit for Chinese state influence and intellectual property extraction. The company’s majority owner, Wingtech, was placed on the U.S. Commerce Department’s Entity List in 2023, alongside more than 100 other Chinese technology firms accused of acting contrary to U.S. national security and foreign policy interests.

Nexperia’s European footprint has drawn international attention before. In 2022, the British government ordered the company to divest its majority stake in Newport Wafer Fab, the United Kingdom’s largest microprocessor facility, after a national security review concluded that continued Chinese ownership posed “a risk to the UK’s technological sovereignty.” The plant was later sold to Vishay Intertechnology, a U.S.-based firm, for $177 million — more than double the $76 million Nexperia originally paid during the height of the global chip shortage.

Dutch officials emphasized that the Goods Availability Act would only be used “when absolutely necessary,” describing the current situation as one of “significant scale and urgency.” The Ministry said the decision to invoke the measure was made on September 30, though it was not publicly disclosed until October 12.

Analysts say the move underscores a broader European pivot toward technological sovereignty and defensive economic policy. The Netherlands, home to both ASML and several key chip fabrication and research facilities, occupies a uniquely strategic position in the semiconductor ecosystem — one that Beijing has long sought to influence. By asserting direct control over Nexperia’s governance, The Hague joins a growing list of Western governments tightening scrutiny of Chinese investments in advanced technology sectors.

While Nexperia insists its operations remain compliant with both Dutch and European Union law, officials have made it clear that national security considerations now outweigh commercial arguments. As one senior Dutch policymaker reportedly put it, “Strategic technology is not for sale.”

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