Dutch government intervenes in Chinese-owned chipmaker Nexperia in a 'rare' decision.
Dutch Government Intervention: The Dutch government has taken control of Nexperia, a Chinese-owned semiconductor manufacturer, to ensure the availability of critical chips in Europe amid rising global trade tensions and potential supply chain disruptions.
Concerns Over Governance: The intervention was prompted by observed governance issues within Nexperia that threatened the continuity of crucial technological capabilities in Europe, particularly affecting the automotive industry.
Impact on Wingtech: Following the announcement, Wingtech, Nexperia's parent company, experienced a significant drop in its stock value, and its chairman was suspended from his roles, while the company was placed under temporary external management.
Geopolitical Tensions: The Dutch government's actions may exacerbate trade relations with China, especially after recent Chinese export restrictions on rare earth elements, and follow previous scrutiny of Nexperia's acquisitions in the semiconductor sector.
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