The Dutch government has placed Nexperia - a Chinese-owned semiconductor company that previously operated Britain's Newport Wafer Fab — under special administrative measures, citing serious governance failures that threaten European tech security.

The Netherlands Ministry of Economic Affairs invoked the Goods Availability Act in response to what it described as "recent and acute" governance shortcomings at Nexperia, which is owned by China's Wingtech Technology.

Officials warned of a "threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities." The ministry stated that losing these capabilities would jeopardize both Dutch and European economic security, particularly the availability of chips used in automotive and consumer electronics during emergencies.

Under the special measures, the Minister of Economic Affairs can now block or reverse Nexperia's corporate decisions if deemed harmful to the company's interests, its future as a Dutch operation, or the critical supply chain it represents.

Reports suggest the intervention may have been triggered by concerns that Nexperia was planning to transfer sensitive chip technology to its China-based parent company.

Wingtech has reportedly fired back through its official WeChat account, condemning the action as "politically motivated" and driven by "geopolitical bias" rather than legitimate security concerns.

According to Wingtech, Nexperia and its global subsidiaries are now prohibited from making any changes to assets, intellectual property, operations, or personnel for one year — effectively freezing the company's worldwide operations.

It claims this is being done "under the pretext of 'national security'", yet it "constitutes excessive intervention driven by geopolitical bias, rather than a fact-based risk assessment."

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The Chinese firm also alleged that "certain foreign executives" within Nexperia colluded with Dutch authorities to "forcibly alter the company's ownership structure" and "usurp shareholder rights" under the guise of compliance. Wingtech expressed "strong protest against such discriminatory treatment targeting Chinese-funded enterprises."

Reg readers will recall that Nexperia was caught up in a furore over Newport Wafer Fab, Britain's largest semiconductor production plant, after acquiring it in 2021 for £63 million ($76 million).

Following a belated national security review under the National Security and Investment Act 2021, the UK government forced Nexperia to divest the facility. Newport Wafer Fab was subsequently sold to Pennsylvania-based Vishay Intertechnology in early 2024 for $177 million.

The Dutch intervention represents the latest example of Western nations restricting Chinese access to strategic semiconductor assets amid growing technological rivalry. ®