Key Points
- The Dutch government is intervening in the Chinese-owned chipmaker Nexperia.
- The move is driven by fears of a forced technology transfer to Nexperia’s Chinese parent company, Wingtech.
- The intervention allows the government to block or reverse harmful company decisions.
- Nexperia is a major global producer of essential chips for the auto and electronics industries.
The Dutch government announced on Sunday that it is intervening at the chipmaker Nexperia, a move prompted by fears that the company’s crucial technology could be transferred to its Chinese parent company, Wingtech.
The Ministry of Economic Affairs said the “highly exceptional” intervention will allow it to block or even reverse any harmful decisions made by the company. However, the government was clear that Nexperia’s regular production of chips can continue for now.
Nexperia is a major global player, producing the simple but essential computer chips, like diodes and transistors, that are used in everything from cars to consumer electronics. The Dutch government is worried that its valuable technology and know-how could end up in the hands of its Chinese owner, a concern that has become a major flashpoint in the global tech rivalry.
The government said its action was a response to “administrative shortcomings” at the company. In response, a Nexperia spokesperson said the company follows “all existing laws and regulations, export controls and sanction regimes.”
The intervention, which the company can appeal in court, is a clear sign of the growing determination of Western governments to protect their strategic technology from falling into the hands of geopolitical rivals.
