Shifting Gears: The Netherlands Takes a Stand Against Chinese Influence in Tech

In a stunning development, the Dutch government has taken a bold step to intervene with Nexperia, a Chinese-owned chipmaker, due to security concerns that threaten Dutch and European economic stability. This exceptional measure is a significant move amid rising tensions between the European Union and China over trade practices and geopolitical relations, especially concerning China’s ties with Russia.

The intervention was prompted by perceived governance shortcomings at Nexperia that could jeopardize critical semiconductor supplies needed for industries such as automotive and consumer electronics. The Dutch authorities invoked the Goods Availability Act, which permits government action in extraordinary scenarios to protect essential goods and economic security.

The government clarified that while its intervention is essential to safeguard technological expertise on Dutch soil, Nexperia can continue its regular production activities. To complicate matters, Nexperia’s parent company, Wingtech, has seen a 10% plunge in its shares following this announcement, indicating market unease about the future of the firm.

This situation marks a chapter of increased scrutiny over Chinese investments in European technology. Nexperia’s recent history includes the forced sale of its silicon chip plant in Newport, Wales, due to similar national security apprehensions. The implications of the Dutch government’s actions could further deepen the rift between Western economies and China’s growing influence in essential tech sectors.