Dutch Government Seizes ChineseOwned Chipmaker To Protect European Economic Security

The Dutch government has taken the highly unusual step of seizing control of a Chineseowned microchip manufacturer, Nexperia, to protect European semiconductor supplies. On Sunday, officials invoked emergency powers under the Goods Availability Act and took charge of Nexperia, which is owned by China’s Wingtech, citing threats to “European economic security”.

Nexperia, whose global workforce numbers more than 12500, produces billions of microchips annually at plants around the world. The company owns a major site in Manchester and previously ran Newport Wafer Fab, a chip factory in South Wales, until compelled by the UK government to sell the facility in 2022 on national security grounds.

This intervention underscores the West’s growing concern regarding its dependence on supply chains located in China and Taiwan. Taiwan’s geopolitical position has been under heightened scrutiny as Beijing signals intentions to bring the island under its control. Wingtech acquired Nexperia for 27bn pounds in 2019, but tensions have escalated since then, with the US government blacklisting the company in 2024.

The Dutch government’s decision followed what it described as “acute signals of serious governance shortcomings and actions” at Nexperia. Measures will remain in place for up to one year, with Dutch authorities blaming the urgency on “the significant scale and urgency of the governance deficiencies”. Concerns were compounded by recent revelations that several Dutch executives at Nexperia had filed petitions demanding an investigation into the company’s operations.

The move arrives after China this month imposed export controls on key battery and rare earth materials. The US has responded with tariffs of 100 per cent on Chinese imports. Beijing’s Ministry of Commerce denounced the seizure, promising resolute measures in response, while Wingtech contested the actions as politically motivated and sought to characterise the Dutch government’s actions as an attack on legal corporate governance.

Relations between the West and China are coming under increasing strain across multiple fronts, including economic and security engagements. European governments are reassessing strategic assets and the risks posed by foreign control of critical infrastructure, signalling a more robust approach to economic sovereignty and business oversight.