Dutch cabinet seizes Nexperia over technological security fears

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 Hague's cabinet fears the transfer of crucial technology to Nexperia's parent company, the Chinese Wingtech.

Nexperia, headquartered in Nijmegen, is a global semiconductor company with over 12,500 employees across Europe, Asia, and the United States. The company ships over 110 billion products annually, generating an annual revenue of $2.06 billion. Nexperia is a subsidiary of the Chinese technology company Wingtech. Following the government's intervention, Wingtech's shares declined sharply at the opening of Chinese stock markets.

Technological security fears

The Dutch Ministry of Economic Affairs intervened in Nexperia on Sunday, October 12, 2025, citing concerns over the loss of crucial technological knowledge and capabilities from the Netherlands and Europe. The ministry stated there were 'acute signals of serious administrative deficiencies and actions' at the Nijmegen-based chip company. The government is utilizing the Wet beschikbaarheid goederen (Wbg), or Goods Availability Act, for the intervention. This law, which dates back to 1952 and had never been used before, enables ministers to issue orders to ensure the availability of certain goods in preparation for emergency situations.

The Dutch government's decision to intervene was triggered by recent indications of serious administrative shortcomings within Nexperia. These shortcomings, according to the government, jeopardize the continuity and security of vital technological expertise and capabilities within the Netherlands and Europe. The potential loss of this knowledge poses a risk to Dutch and European economic security. Nexperia produces chips used in the European automotive industry and consumer electronics. Adding to the turmoil, Zhang Xuezheng, the Chinese top executive of Nexperia, was removed from his position by the Enterprise Chamber of the Amsterdam Court of Appeal. This action followed his earlier suspension.

The Dutch government is taking over

With this intervention, the Dutch government can now block or reverse decisions within Nexperia if they are deemed detrimental to the company's interests, its future as a Dutch and European entity, or the preservation of Europe's crucial value chain. While the government has taken control of decision-making, Nexperia's regular production processes are allowed to continue. The Ministry emphasizes that using the Goods Availability Act is highly exceptional and only warranted due to the significant scale and urgency of the administrative deficiencies at Nexperia. The government insists this action targets only this specific company and is not aimed at other companies, the sector, or other countries. Nexperia can challenge the decision in court.