(MENAFN) In a decisive action aimed at safeguarding the European Union’s economic and technological interests, the Dutch authorities have taken over a semiconductor manufacturing firm owned by a Chinese company.

The chipmaker, headquartered in the Netherlands and owned by China’s Wingtech Technology, labeled the government's decision as “excessive,” asserting that it had abided by all applicable laws and guidelines.

According to a statement issued by the Netherlands’ Economy Ministry late Sunday, an emergency law — one that had never been activated before — was used to assume control of Nexperia, a chip producer previously part of Dutch electronics conglomerate Philips.

The company is recognized for its large-scale production of semiconductors used across various sectors, including automotive and consumer electronics.

Officials in Amsterdam expressed concerns that, in a potential crisis, access to Nexperia’s semiconductor components might be compromised. They warned that such a scenario “could pose a risk to Dutch and European economic security.”

The government described the measure as “highly exceptional,” referencing “recent and acute signals of serious governance shortcomings and actions” detected within the organization.

Following the announcement, shares of Wingtech plummeted by 10% on the Shanghai stock exchange on Monday, triggering a trading suspension after reaching the market’s daily limit.

Reacting to the takeover, the Chinese tech firm criticized the Dutch action as an “excessive intervention driven by geopolitical bias, rather than a fact-based risk assessment.”

This statement was shared in a WeChat post that has since been removed, but was archived by the Chinese policy analysis blog Pekingnology. Wingtech emphasized its intention to defend its legal interests and announced plans to seek backing from Chinese authorities.

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