Economic Security Law Applied Netherlands Orders Oversight of Nexperia

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Nexperia B.V.

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In an unprecedented action, the Dutch government has ordered oversight and intervention rights at chip manufacturer Nexperia based on the "Goods Availability Act." This is justified by "severe governance deficiencies." There are concerns that key technologies could fall into Chinese hands.

On October 12, 2025, the Dutch Ministry of Economic Affairs announced that the "Goods Availability Act" had been activated on September 30. The measure aims to prevent products—both finished and semi-finished—manufactured by Nexperia from becoming unavailable in an emergency. The Nijmegen-based semiconductor company is a subsidiary of the Chinese group Wingtech and produces chips for the European automotive and consumer goods industries.

According to the ministry's statement, there are "serious governance deficiencies." "The law was invoked due to recent and acute indications of significant shortcomings in corporate governance and actions within Nexperia. These signs posed a threat to the continuity and protection of important technological knowledge and capabilities on Dutch and European soil. The loss of these capabilities could present a risk to the economic security of the Netherlands and Europe," it says, translated from English.

Under the law, corporate decisions can therefore be blocked or reversed if deemed potentially harmful to the economic security of the Netherlands or Europe. Ongoing production is allowed to continue. "The minister's invocation of the Goods Availability Act is highly exceptional. The decision to apply it was made solely due to the significant scale and urgency of the governance deficiencies at Nexperia," the ministry stated.

Reactions from China

Wingtech officially confirmed on October 13, 2025, that the Dutch government had exercised supervisory rights over Nexperia and that a Dutch court had simultaneously ordered independent administration. CEO Zhang Xuezheng was suspended from his management functions at Nexperia by decision of the Amsterdam Enterprise Chamber, and the voting rights of the holding shares (99 out of 100 shares) were temporarily transferred to an independent trustee. Nexperia's operational business continues, but Wingtech currently has no influence over management decisions. The company is considering legal action and refers to these measures as "temporary" restrictions. The overall impact cannot yet be quantified; the situation is being monitored and risks are being continually assessed.

Wingtech stated verbatim: "On October 1, 2025, Nexperia's leadership (CLO Ruben Lichtenberg, CFO Stefan Tilger, COO Achim Kempe) filed a request with the Amsterdam Court of Appeal (Enterprise Chamber) for an investigation and emergency measures. The court subsequently suspended Wingtech founder and CEO Zhang Xuezheng from all management functions at Nexperia and transferred the voting rights of the holding shares (99 out of 100 shares) to an independent trustee until a final decision is made."

Supervision for One Year?

According to industry sources, the intervention affects changes to assets, intellectual property, and personnel decisions at Nexperia for one year, effectively giving the Dutch government oversight over strategic decisions. The decision sparked outrage in China—many observers referred to it as "expropriation" and "theft." The move comes after the U.S. government expanded its export restrictions in September to include subsidiaries of sanctioned companies, reports Global Semi Research. As a result, Nexperia also came under scrutiny, as Wingtech has been on the U.S. Entity List since 2024. This measure has made access to U.S. technology more difficult and put supply chains under pressure.

According to company information, Nexperia generated around 14.7 billion yuan in revenue (approximately 2.0 billion US dollars) in 2024, with the majority coming from Chinese production facilities. For Wingtech, which acquired Nexperia in 2018 for 33 billion yuan, the company is its most important pillar in the semiconductor business.

Observers view the Nexperia case as a textbook example of the geopolitical fracture in the semiconductor industry. For decades, it was characterized by globally distributed, trust-based cooperation. Now, the concept of national technological self-defense is gaining increasing traction. "The case serves as a cautionary tale for any Chinese company attempting to acquire core technologies abroad through takeovers and shows that such deals are no longer feasible under the current geopolitical conditions," write the editors of Global Semi Research. (sb)

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