Nexperia is a semiconductor manufacturer that focuses on the high-volume production of essential chip components like discrete semiconductors and integrated circuit boards. It is headquartered in the Netherlands and has facilities and operations across Asia, Europe, and the United States. The company traces its roots to the semiconductor division of Philips until it became NXP in 2006 and was later acquired by the China-owned company Wingtech Technology in 2018.
Protecting National Interest: Why The Government of the Netherlands Took Over Nexperia Control
An Old Dutch Emergency Law Finds New Purpose
The Dutch government moved to assume control of Nexperia on 12 October 2025 after concluding a thorough national security and supply chain review. This particular decision followed weeks of interagency consultations and briefings to cabinet officials about the potential consequences of foreign influence during crises or emergencies.
Dutch authorities cited the Goods Availability Act, an emergency statute enacted in 1952, a law from the Cold War that had rarely been used in the postwar period. This law allows ministers to impose direct controls on corporate governance when product availability linked to national interest appears under threat from management failures.
Minister for Economic Affairs Micky Adriaansens asserted that the measure enables temporary oversight rather than nationalization. The government issued an administrative order that curtailed existing shareholder authority and required judicial cooperation to implement new governance structures without halting scheduled production and deliveries.
Supply Disruption and Transparency Concerns
The intervention followed findings of serious administrative shortcomings within Nexperia. Dutch officials reported insufficient transparency in board processes, limited access for regulators to internal decision records, and inadequately documented crisis management protocols that could slow emergency response during supply disruptions.
Officials highlighted the impact on automotive, telecommunications, and other industrial sectors that depend on deliveries of finished and semi-finished semiconductors. Nexperia produces high-volume diodes, transistors, and power components required across European factories. Any disruption could affect critical manufacturing pipelines.
Nexperia was also acquired by the China-owned Wingtech Technology for about 3.6 billion U.S dollars in 2018-2019. Officials referenced earlier controversies involving Wingtech. These included failed takeover attempts in the United Kingdom and heightened attention from United States authorities regarding sensitive technology transfers.
From Boardroom Shake-Up to Geopolitical Fallout
The order removed Nexperia chairman Gao Yu from board functions and instructed courts to appoint an independent director without ties to Chinese entities. The replacement will hold decisive voting rights on governance matters and can reassess or block decisions with strategic implications or deemed harmful to economic or security interests.
All manufacturing activities will continue under the supervisory guidance. In addition, although production management and workforce operations remain intact, strategic decisions involving investments, contracts, or leadership appointments will require approval from the designated authorities to guarantee accountability and safeguards.
Wingtech shares declined in Chinese trading following the announcement. China condemned the move as politically motivated. The European Commission expressed support for stronger oversight of foreign holdings in strategic industries and indicated that similar reviews may emerge across member states concerned about long-term technology resilience.