Dutch Government Seizes Control of China-Owned Chipmaker Nexperia

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Nexperia, which manufactures semiconductors for cars and consumer electronics, is owned by Jiaxing-based company Wingtech, which is partially owned by the Chinese Communist Party (CCP).

The intervention gives the government the power to reverse or block management decisions it sees as harmful.

However, the company’s regular production will be allowed to continue.

The ministry stated that it had noticed signals that “posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities.”

“Losing these capabilities could pose a risk to Dutch and European economic security,” the statement reads, saying that the measure is “intended to mitigate that risk.”

Nexperia has the right to appeal the decision in the Dutch courts.

“This action seriously violates the [European Union’s] long-standing advocacy for market economy, fair competition, and international trade rules,” Wingtech stated. “We strongly protest this discriminatory treatment against Chinese-funded enterprises.”

A spokesperson for Nexperia said that the company adheres to “all existing laws and regulations, export controls and sanction regimes.”

Nexperia is one of the world’s largest makers of simple computer chips, such as diodes and transistors. It also develops more advanced technologies that use chips to make batteries more efficient.

Wingtech bought Nexperia, which is based in Nijmegen, in its entirety for about $3.63 billion in 2018.

Wingtech was placed on the U.S. “entity list” in December 2024, identifying it as a national security concern.

Last month, Washington expanded entity list rules to automatically include subsidiaries that are 50 percent or more owned by companies on the entity list, which would mean Nexperia is now subject to the same restrictions as Wingtech.

There has been increasing concern in the United States about the global production of semiconductors, with the bulk of the world’s most sophisticated chips being made in Taiwan, which faces an ongoing existential threat from the CCP, which views the nation as part of its territory.

“We’ll be putting a tariff of approximately 100 percent on chips and semiconductors,” Trump said.

“But if you’re building in the United States of America, there’s no charge, even though you’re building and you’re not producing yet.”

Lutnick said that Taiwan’s proximity to China and its distance from the United States raise concerns about the island producing “95 percent of our chips.”

“The Chinese have said, ‘We’re going to take Taiwan,’” Lutnick said. “Like, they’re not even shy about it. So this is an issue.”

Taiwan’s dominant role in global chip manufacturing, led by chipmaker Taiwan Semiconductor Manufacturing Co., has been labeled as a deterrent against the Chinese regime’s military aggression, a concept known as the “silicon shield.”

“Semiconductors are the backbone of the digital economy and critical technologies, powering automotive, telecommunications, healthcare, energy, defence, and artificial intelligence,” the coalition said in a statement.

“The Declaration underlines the need for Europe to act together to reduce vulnerabilities, secure supply chains, and reinforce technological leadership in design, manufacturing, and innovation.”

The Epoch Times has contacted Nexperia and Wingtech for comment.