Dutch take over Chinese-owned Nexperia to hold onto critical chip tech

The Dutch government has taken over chipmaker Nexperia, replacing the Chinese electronics manufacturer Wingtech as owner in a step that the Ministry of Economic Affairs dubs necessary to safeguard “crucial technological knowledge and capacities” in Europe.

The decision, taken under a national law called the Availability of Goods Act, is described in the government’s October 12 press release as “highly exceptional”. It follows “serious governance shortcomings” at Nexperia, per the press release, which suggests these had posed a threat to maintaining “crucial technological knowledge and capacities” on Dutch and European soil.

The Dutch move also comes amid rising debate around Europe over how to boost digital sovereignty, and follows a perception that legislative steps taken by the EU in recent years, aimed at boosting the Union’s semiconductor supply chain, have failed to move the needle.

Nexperia is one of the world’s largest producers of chips for the automotive and electronics industries, claiming to ship over 100 billion units every year. The chipmaker is a second-generation spin-off of Dutch healthtech company Philips. It was acquired by the Chinese electronics company Wingtech Technology in 2018.

The takeover follows an emergency hearing by the Amsterdam Enterprise Chamber, on 6 October, that removed Chinese national, Zhang Xuezheng, from the director role at Nexperia, according to Euractiv’s sister Dutch media NRC.

Zhang will be replaced by a non-Chinese director, the Dutch Court said.

The government can now veto internal managerial decisions in order to ensure that chips produced by Nexperia “remain available in the event of an emergency”, its press release adds.

Nexperia and Wingtech could not immediately be reached for comment.

(nl)

UPDATE: Updated to correct the second reference to Zhang Xuezheng