The Dutch government has taken control of a Chinese-owned chip manufacturing company based in the Netherlands in a bid to secure the supply of semiconductors for cars and other electronic products.
Authorities explained that the decision was made to prevent potential shortages of semiconductors in the event of an emergency.
Wingtech, the Chinese parent company of Nexperia, which has been seized by the Dutch state, said on Monday that it would take all necessary measures to defend its rights.
The sudden move is likely to heighten tensions between the European Union and China, which have already grown over trade in recent months, particularly as Beijing has strengthened its ties with Moscow.
The Dutch Ministry of Economic Affairs described the measure as “exceptional“, invoking the Goods Availability Act over “acute signals of serious governance shortcomings” within Nexperia.
“These signals 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,” the ministry said in a statement.
