The Netherlands has taken control of Nexperia, a Chinese-owned chipmaker, citing concerns over the European Union’s economic and technological security. The Dutch government invoked an emergency law to seize control of the company, which specializes in producing chips for the automotive and consumer electronics industries.

Nexperia, formerly part of Dutch electronics group Philips, is now owned by China’s Wingtech Technology. The Dutch Economy Ministry stated that the move was necessary to prevent a situation where Nexperia’s chips could become unavailable in an emergency, posing a risk to Dutch and European economic security. The government described the intervention as “highly exceptional,” citing recent signals of governance shortcomings within the company.

Wingtech Technology has denounced the Dutch government’s move as “excessive intervention driven by geopolitical bias” rather than a fact-based risk assessment. The company announced that it would take actions to protect its rights and seek government support. Following the Dutch order, Wingtech’s control over Nexperia will be temporarily restricted, affecting decision-making and operational efficiency.

The takeover of Nexperia occurs amidst escalating global trade tensions between China and the European Union. The EU has accused China of dumping certain key goods and industrial overproduction, while China has countered with accusations of protectionism. Recently, China tightened its restrictions on the export of rare earth elements and magnets, a move that could further impact the EU’s struggling auto industry.

The Dutch government’s decision to seize control of Nexperia highlights the growing concerns over economic and technological security in the face of rising global trade tensions. As the situation develops, it remains to be seen how the seizure will affect the company’s operations and the broader trade relations between China and the EU. The incident is likely to have significant implications for the global semiconductor industry and may lead to further tensions between major trading nations.