The Dutch government has intervened in the control of Chinese-owned chipmaker Nexperia, marking an unusual move and generating diplomatic friction, according to Reuters. Dutch authorities justified the intervention by citing concerns that critical technology could be improperly transferred to the Chinese parent company, Wingtech.
While the Dutch government will not formally own Nexperia, it has acquired the power to veto or reverse administrative decisions it deems harmful. Nexperia, a Nijmegen-based company focused on manufacturing chips for automobiles and consumer electronics, had operated under full control of Wingtech since its acquisition for approximately US$3.63 billion in 2018.
According to the official statement, its production was not interrupted by the intervention. To legitimize the measure, the Dutch government invoked powers under the Dutch law called the “Availability of Goods Act,” never previously used in this type of scenario. The news caused Wingtech’s shares to drop by approximately 10% on the Shanghai Stock Exchange.
Wingtech responded by accusing the intervention of “excessive interference driven by geopolitical bias.” The company stated that it will seek legal advice and seek government support to protect its interests.
Concurrently, a court in Amsterdam suspended Wingtech’s chairman, Zhang Xuezheng, from Nexperia’s board of directors and ordered the appointment of an independent, non-Chinese director with decision-making power to replace him. The Dutch decision heightens tensions in the global context of the struggle for technological control, especially in strategic sectors such as semiconductors.
Source: brasil247.com