Netherlands Signals Potential Return of Nexperia to Chinese Ownership Amid Chip Supply Concerns
Teh Hague, Netherlands – The Netherlands government is signaling a willingness to return semiconductor manufacturer Nexperia to Chinese ownership, contingent on demonstrable restoration of supply chain stability and improved corporate governance, according to recent statements. The move comes after a controversial intervention last year where the Dutch government blocked a planned acquisition by Nexperia’s Chinese parent company, Wingtech, citing national security concerns related to technological sovereignty and opaque Chinese influence.
The Dutch government justified its initial intervention with stricter domestic legislation regarding threats to technological sovereignty and the non-clear influence of third countries. Though, officials have now indicated a path forward if supplies from Nexperia’s Chinese operations to Europe are reliably re-established.
China has countered that the Netherlands misused safeguard clauses to limit the rights of a legitimate owner and that resolution should come through negotiation, not directives. The Dutch government maintains that disruptions in supply were triggered by centralized interference from Beijing in the export operations of a private company, and the temporary takeover of Nexperia was a response to failures in corporate governance.
Both sides acknowledge the need for clear, legally enduring rules governing the relationship between Nexperia’s European and Chinese entities to prevent future vulnerability to political interference and internal disputes.
The situation highlights broader concerns about the security of critical supply chains, notably in the semiconductor industry, as evidenced by escalating production issues impacting global automotive manufacturers. Negotiations are planned in Beijing to address operations, management, and geopolitical considerations, requiring the Netherlands to balance investment openness with security interests, and China to demonstrate commitment to trade agreements independent of political decisions. Officials on both sides agree that a resolution avoiding coercive measures is crucial to prevent losses for both parties.
