Netherlands Seizes Chinese-Owned Chipmaker Nexperia Amid Tech Rivalry

The Dutch government today took control of Nexperia, a semiconductor manufacturer previously owned by a Chinese company, escalating tensions in the global competition for dominance in critical technology.

The move, enacted under emergency production laws, impacts Nexperia’s production of basic chips used in automobiles, consumer electronics, and industrial applications. The government intervened citing concerns over the transfer of technological knowledge, production capacity, and intellectual property rights to entities not affiliated with Nexperia, according to a letter from economy minister Vincent Karremans to parliament. This action follows a December decision by the U.S. to place Nexperia’s parent company, Wingtech, on an export control “entity” list, further restricting its access to key technologies.

Beijing responded by banning exports of some Nexperia products assembled in China, a move analysts predict will accelerate diversification of packaging operations away from the country. The Netherlands, home to ASML – a leading manufacturer of chipmaking equipment – has already complied with U.S. restrictions on exports to China, but the Nexperia seizure represents a significantly more assertive step. This case is part of a broader trend, as described by the Rhodium Group, of Washington attempting to “claw back” strategic assets from Chinese control. The EU is currently working to bolster its semiconductor production capacity through the Chips Act, but faces challenges in meeting its ambitious goals of producing 20% of the world’s chips by 2030; you can learn more about the EU’s strategy here.

The Nexperia case coincides with China’s announcement of new export controls on rare earth minerals, critical components in electric vehicles and defense systems, potentially disrupting supply chains and raising prices. These actions highlight a growing trend of economic security concerns and strategic competition between major global powers, and underscore Europe’s vulnerability to disruptions in both semiconductor and raw material supplies. For more on the implications of these developments, see analysis from the Council on Foreign Relations. Officials stated that further measures to protect European economic security are under consideration.