Netherlands Invokes Rare Emergency Law to Control Chinese Chipmaker  

The Dutch government seized control of Chinese-owned semiconductor manufacturer Nexperia, headquartered in the Netherlands, enacting a rarely used emergency law to address risks to Dutch and European economic security caused by possible asset and technology transfer to China, Euronews reported. 

The Ministry of Economic Affairs announced late Sunday the invocation of the Goods Availability Act, which allows the state to secure access to critical goods and production during emergencies or when vital skills are at risk. 

The law also allows the state to block or reverse company decisions. 

The move is intended to prevent goods produced by Nexperia, meaning finished and semi-finished products, from becoming unavailable in an emergency and to ensure essential technical expertise remains in Europe, according to a statement by Dutch officials. 

Dutch authorities did not share detailed accusations but cited serious governance concerns and the worry that Europe will be shut out of essential technology and capabilities, hinting at fears of tech leakage where property and know-how are transferred to China, Politico noted. 

Nexperia, a major supplier of power and signal chips used in autos and electronics, is headquartered in the eastern Dutch city of Nijmegen and has additional subsidiaries across the world. It is owned by China’s Wingtech through its Yucheng Holding vehicle. 

The company said its control rights at Nexperia were “temporarily restricted,” but added that it maintained the economic benefits of ownership. Wingtech criticized the Dutch intervention as “an act of excessive interference driven by geopolitical bias, not by fact-based risk assessment,” and added it had appealed to the Chinese government for help.  

It also indicated the intention of pursuing legal avenues. 

The decision highlights a broader European trend of using national security measures to oversee ownership and decision-making in critical tech supply chains. It also marks the latest flashpoint in Western attempts to protect semiconductor industries amid intensifying US-European Union export controls and investment screening aimed at China. 

In 2022, the United Kingdom ordered Nexperia to sell its chip-manufacturing plant in Wales over national security concerns.