The Dutch government just made an unprecedented move in the global chip wars, seizing control of Nexperia - a Chinese-owned semiconductor company vital to Europe's auto industry. Using emergency powers under the Goods Availability Act, the Netherlands cited 'serious governance shortcomings' as justification for what officials called a 'highly exceptional' intervention that sent shockwaves through Asian markets.
The Dutch government just escalated the global chip wars in dramatic fashion, seizing control of Nexperia - a Chinese-owned semiconductor maker that's become critical to Europe's automotive supply chains. The move represents one of the most aggressive government interventions in the semiconductor industry since the trade tensions began.
The intervention hit markets immediately. Wingtech Technology, Nexperia's Chinese parent company, plunged its maximum daily limit of 10% on the Shanghai Stock Exchange after the announcement broke Sunday evening. The company's shares have been under pressure all year as geopolitical tensions mounted.
According to the Dutch Minister of Economic Affairs, the government invoked the rarely-used Goods Availability Act in September 'to prevent a situation in which the goods produced by Nexperia would become unavailable in an emergency.' The law gives the Hague sweeping powers to intervene in private companies when national security is at stake.
What triggered this nuclear option? The ministry observed 'recent and acute signals of serious governance shortcomings and actions' within Nexperia that threatened 'crucial technological knowledge and capabilities' on European soil. Officials specifically flagged risks to the automotive sector, where Nexperia's high-volume chips are essential for everything from electric vehicles to advanced driver assistance systems.
The takeover immediately suspended Wingtech chairman Zhang Xuezheng from his executive roles at Nexperia Holdings, according to corporate filings with the Shanghai Stock Exchange. The company now operates under temporary external management, with restrictions on asset changes, business decisions, and personnel moves for up to a year.
Wingtech fired back in a now-deleted WeChat post, calling the seizure 'excessive intervention driven by geopolitical bias, rather than a fact-based risk assessment.' The company insists it has 'strictly abided by laws and regulations' since acquiring Nexperia in 2019 and employs thousands across R&D and manufacturing sites in the Netherlands, Germany, and Britain.
