The Dutch government has frozen the control rights of the subsidiary Nexperia of the semiconductor industry leader Wingtech for a year on grounds of security. This move has led to a sharp drop in the stock price of Wingtech, with trading being halted due to hitting the limit down.
Wingtech, a leading company in the semiconductor industry in mainland China, announced yesterday that Nexperia received an order from the Dutch Ministry of Economic Affairs and Climate Policy and a ruling from the Enterprise Chamber of the Court of Appeal in Amsterdam, prohibiting any adjustments to its assets, intellectual property, business, and personnel for a year. This restriction has temporarily stripped Wingtech of its control over the semiconductor subsidiary.
According to Reuters, the Dutch government expressed concerns that key technology might be transferred to Wingtech’s Chinese parent company. As a result of this news, Wingtech’s stock opened today with a limit down, maintaining a 10% decline from the opening to the closing price.
In late September, Nexperia, the subsidiary of Wingtech, faced interventions from both the Dutch government and the court. This was triggered by an emergency application filed by Nexperia’s Chief Legal Officer, Ruben Lichtenberg (Dutch nationality), along with the CFO and COO (both German nationals), requesting a review of “changes in company control and potential national security risks.” They raised concerns about the lack of transparency in Nexperia’s technology flow, client list, and supply chain layout since Wingtech’s acquisition in 2019, fearing that some high-end power semiconductor technology might be used in “sensitive scenarios.”
Subsequently, the Dutch Ministry of Economic Affairs and Climate Policy issued a “highly specific” administrative order, directing Nexperia and all its global affiliated entities not to make any adjustments to assets, intellectual property rights, business, personnel, etc., for a year.
Following the ministerial order, the three individuals swiftly applied for an interim injunction with the Enterprise Chamber of the Court of Appeal in Amsterdam, which made a “historic and strict” ruling within 48 hours: suspending the roles of Chinese representatives in Nexperia’s board, appointing an independent foreign director with decisive voting rights, and entrusting most of the shares to a third-party custodian.
According to sources cited by the Dutch newspaper “NRC” on October 12, there were signs that Nexperia planned to transfer chip technology to China, which the Dutch government viewed as a severe threat to national and economic security. The Netherlands has invoked the “Availability of Goods Act” for the first time as a special legal measure during war or emergency situations to regulate chip companies.
Vincent Karremans, the Dutch Minister of Economic Affairs, stated that these measures were taken to protect intellectual property security, especially safeguarding critical chip technology supplied to the European automotive industry.
Nexperia, formerly a division of the Dutch chip giant NXP Semiconductors, focuses on producing standard chip products. It operated independently in 2017 before being fully acquired by Wingtech in 2019, becoming its wholly-owned subsidiary. Financial reports indicate that in 2024, Nexperia’s revenue was approximately 14.7 billion yuan, accounting for about one-sixth of Wingtech’s total revenue in 2024.
While Nexperia does not manufacture complex or advanced chips, its large-scale production of standard chips serves as the fundamental component for all electronic products. With factories in Germany and the UK, it plays a crucial role in the supply chain of the European automotive industry.
The Dutch intervention in Nexperia comes amidst a comprehensive escalation of the US-China tech war. The Chinese authorities announced an expansion of rare earth export controls on October 9, followed by initiating an antitrust investigation against the US chip giant Qualcomm on October 10, as well as imposing port charges on US vessels operating under the American flag.
On October 10, former US President Trump announced on the “Truth Social” platform that starting from November 1, 2025, a 100% tariff would be imposed on Chinese goods, and all key software exports would face restrictions. The US government has been simultaneously advancing restrictions in various sectors, forming a comprehensive posture of countermeasures.