US concerns about Nexperia’s leadership precede Dutch takeover
US authorities warned the Netherlands in June that Nexperia, the China-owned chipmaker, could face export restrictions to the United States if its Chinese chief executive remained in post. Court papers released this week reveal that U.S. officials believed the company’s leadership posed a risk to national security and to ongoing supply of semiconductor components to the United States.
The Dutch government’s intervention, announced late on Sunday, relied on a cold war-era law to effectively take control of Nexperia, a Nijmegen-based firm controlled by Wingtech. Authorities cited “major shortcomings that could jeopardise security of supply” of chips to European factories as a key justification for the move.
By the time the takeover was announced, Zhang Xuezheng, the Chinese chief executive, had already been suspended from Nexperia. Wingtech, which owns a 32% stake and is backed by Chinese national and regional interests, acquired Nexperia in 2018 from Philips, the Dutch electronics company. The U.S. concerns, it appears, stretched back to June, long before the Dutch decision to intervene.
Details in the court papers
A preliminary court ruling released on Tuesday included meeting minutes from 12 June in which the U.S. Bureau of International Security and Nonproliferation told the Dutch foreign ministry: “The fact that the company’s CEO is still the same Chinese owner is problematic … It is almost certain that the CEO will have to be replaced.” The documents underscore Washington’s view that Wingtech’s control over Nexperia could undermine U.S. export controls and strategic technology goals.
The U.S. placed Wingtech on its entity list last year for allegedly helping China’s government acquire entities with sensitive semiconductor manufacturing capacity. Last September, the U.S. expanded the entity list to include Wingtech subsidiaries, which would have imposed export restrictions on Nexperia by November end if not for the Dutch intervention.
What the Dutch government did and why
In a highly unusual step, the Dutch invoked the Availability of Goods Act, a law that allows the state to reverse or block management decisions perceived as harmful to the economy or security, without transferring ownership. The government said the law’s use was necessary to safeguard security of supply for European factories and to maintain critical wafer production capacity across Europe, including facilities in Manchester and Hamburg.
The intervention saw Guido Dierick, a Dutch businessman, appointed with a “deciding vote” to temporarily replace Zhang and to take over most of Nexperia’s shares via a trusted Dutch legal representative. The Dutch state and the company’s labor council backed the move, arguing that it was in Europe’s strategic interest amid rising geopolitical tensions surrounding technology trade with China.
Reactions and broader tensions
Nexperia described the Dutch action as an “excessive interference driven by geopolitical bias,” and noted that it is negotiating with U.S. authorities to remove export barriers. Wingtech accused non-Chinese executives at Nexperia of attempting to alter the company’s equity structure through legal channels in what it called a “cloaked power grab.”
Beijing reacted with warnings as China’s state-run media framed the takeover as a Western use of “national security” rhetoric to justify losing ground in science and technology. The People’s Daily described the move as part of a broader struggle between Western powers and China over innovation leadership.
The event mirrors a broader push by Western governments to scrutinize Chinese-owned semiconductor assets. It follows a prior UK move in 2023 to compel Wingtech to dispose of its stake in a Welsh silicon plant amid security concerns, highlighting a continental pattern of state intervention in strategic tech assets.
Implications for future exports and cooperation
While Nexperia negotiates export-clearance pathways with the United States, Europe faces ongoing questions about how to balance open markets with national security. The Dutch case suggests that governments may increasingly use legal tools to safeguard supply chains, even when owning stakes in critical tech firms is involved.
As discussions continue, stakeholders on all sides are watching closely: manufacturers reliant on European wafer facilities, policymakers managing export controls, and investors navigating a heightened geopolitical environment around semiconductor technology.
