Dutch Government Takes Control of Chip Maker Nexperia

The Dutch government has invoked a rare emergency law to take control of decisions at semiconductor manufacturer Nexperia due to ‘serious administrative deficiencies’ at the company, which produces chips for industries like automotive and consumer electronics.

The government was concerned about the possible transfer of crucial technology from Nexperia to its Chinese parent firm Wingtech.

It may be recalled that on 30 September 2025, the Dutch Minister of Economic Affairs invoked the Goods Availability Act due to serious governance shortcomings at semiconductor manufacturer Nexperia.

Nexperia is located at Nijmegenwith additional subsidiaries in various countries around the world. The decision aims to prevent a situation in which the goods produced by Nexperia (finished and semi-finished products) would become unavailable in an emergency. The company’s regular production process can continue.

Nexperia makes chips used in phones, cars, and solar panels, among other everyday items. The company was acquired by Wingtech in 2019. Chinese media was also discussing government intervention at Nexperia.

Wingtech said in a stock exchange filing that its control over Nexperia will be temporarily restricted due to the Dutch order and court rulings, affecting decision making and operational efficiency. Following this, the Wingtech shares fell sharply after the Chinese markets opened.

The company’s Chairman Zhang Xuezheng was suspended from Nexperia’s boards by an Amsterdam court order on October 6 and ousted by the Dutch Government on Monday.

An independent non-Chinese person with a “deciding vote” would be appointed in his place, Wingtech said.

A spokesperson for Nexperia said the company adhered to all existing laws and regulations, export controls and sanction regimes, and declined further comment.

Reasons

The Act has been invoked following recent and acute signals of serious governance shortcomings and actions within Nexperia. These signals 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. Nexperia produces, among other things, chips used in the European automotive industry and in consumer electronics.

This measure is intended to mitigate that risk. On the basis of the order, company decisions may be blocked or reversed by the minister of Economic Affairs if they are (potentially) harmful to the interests of the company, to its future as a Dutch and European enterprise, and/or to the preservation of this critical value chain for Europe. The company’s regular production process can continue.

Invoking the Goods Availability Act by the Minister is highly exceptional. Only due to the significant scale and urgency of the governance deficiencies at Nexperia has the decision been made to apply the Act.

This is a measure the government uses only when absolutely necessary. The application of this Act in this case is solely intended to prevent governance shortcomings at the specific company concerned and is not directed at other companies, the sector, or other countries. Parties may lodge an objection to this decision before the courts.

Nexperia is a global semiconductor company with over 12,500 employees across Europe, Asia, and the US. The company ships over 110 billion products annually, generating an annual revenue of $2.06 billion.