The Dutch government, in a surprise move, intervened in the business of the Chinese-owned semiconductor company Nexperia, which manufactures chips used in industries such as automotive and consumer technology, citing "acute signals of serious governance shortcomings and actions within Nexperia."
In a statement released late Sunday, the Dutch Ministry of Economic Affairs said it had invoked the rarely used Goods Availability Act because the concerns about Nexperia's governance "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," it said.
The statement did not elaborate.
Nexperia, based in the Dutch city of Nijmegen, is owned by Wingtech, a Chinese company. The Dutch company did not immediately respond to a request for comment.
Wingtech said in a statement to the Shanghai Stock Exchange that the decision led to the Chinese company's holding firm, Yucheng Holding, having its control over Nexperia "temporarily restricted, but the company’s right to economic benefits as a shareholder remained unaffected." Wingtech's stock slumped 10% on Monday on the Shanghai bourse.
Wingtech said in its statement that it is in talks with lawyers "on legal remedies and means, and will take all actions to maximize the protection of the legitimate rights and interests of the company and all shareholders; at the same time, it is actively contacting relevant government departments to seek support."
The Dutch government said that based on its intervention, "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."
Late last year, the U.S. Commerce Department included Wingtech in an expanded list of Chinese technology companies subject to export controls. Then-Commerce Secretary Gina Raimondo said the move was intended to impair China’s ability to use advanced technologies that "pose a risk to our national security."
