Dutch Government Takes Control of Nexperia

Dutch Government Takes Control of Nexperia

The Dutch government fears Nexperia’s Chinese owner wants to siphon off know-how to China and is therefore taking control of the company itself.

Dutch chip specialist Nexperia will come under government control. The Dutch Ministry of Economic Affairs is invoking the ‘Goods Availability Act’. Using this exceptional emergency measure, the government can block or reverse corporate decisions if they are deemed harmful to the company’s interests within a Dutch and European context.

The measure follows concerns that Chinese owner Wingtech intends to leak chip expertise to China, NRC reports. For one year, Nexperia may no longer relocate business units, hire administrators, or make other major decisions without government approval.

Shortcomings

The assumption of control dates back to September 30 but is only now coming to light. “The act was deployed in response to recent and acute signals of serious managerial shortcomings and actions at Nexperia,” the Ministry of Economic Affairs stated. “These signals threaten the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities. Losing them could pose a risk to Dutch and European economic security.”

Nexperia produces, among other things, chips for the European automotive industry and consumer electronics. The manufacturer does not specialize in the most complex microchips but does produce high-volume chips that are important in the value chain. The company originated from NXP.