Dutch Government Takes Control of China-Owned Chipmaker Nexperia

'Dutch authorities have temporarily nationalized Nexperia, owned by Chinese company Wingtech, over fears of critical product unavailability,' writes longtime Slashdot reader evil_aaronm. Reuters reports: The Hague invoked never-before-used powers under a Dutch law known as the 'Availability of Goods Act.' The decision led to a 10% fall in Wingtech's shares in Shanghai on Monday. The Dutch government will not take ownership of Nexperia, but it will now have the power to reverse or block management decisions it considers harmful. The company's regular production is continuing. Wingtech called the Dutch government's intervention in Nexperia, once part of Dutch electronics group Philips, 'excessive interference driven by geopolitical bias.' Wingtech also alleged that non-Chinese Nexperia executives had tried to forcibly alter the company's equity structure through legal proceedings in a 'cloaked power grab' on the company.

A copy of an Amsterdam commercial court ruling dated October 7 and seen by Reuters showed that the court decided on October 1 to suspend Wingtech CEO Zhang Xuezheng from his position as executive director at Nexperia after finding 'well founded reasons to doubt' the company was pursuing correct management policy or actions under Dutch civil law. It appointed Dutch businessman Guido Dierick to take Zhang's position with a 'deciding vote', and transferred control of almost all of Nexperia's shares to a Dutch lawyer for management. The Dutch state and the company's labour council had supported the moves, the document showed.

In its statement, the Dutch government said that administrative problems at Nexperia posed a threat to the company's 'crucial technological knowledge' without elaborating.
'The loss of these capabilities could pose a risk to Dutch and European economic security,' it said. Nexperia is one of the world's largest makers of simple computer chips such as diodes and transistors, though it also develops more advanced technologies such as 'wide gap' semiconductors used in electrical settings and useful for electric cars, chargers and AI data centres. Wingtech said in a filing to the Shanghai stock exchange on Monday that its control over Nexperia would be temporarily restricted due to the Dutch order and court rulings, affecting decision making and operational efficiency.

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