Tuesday, 02 January 2024 12:17 GMT

Dutch Government Seizes Chinese-Owned Chipmaker Nexperia


(MENAFN) Dutch officials have taken control of the chip manufacturing firm Nexperia, owned by a Chinese parent company, after intense pressure from Washington, according to a media outlet. Citing newly disclosed court records, the report states that the Netherlands-based firm was officially seized earlier this month.

This development unfolds against the backdrop of growing economic friction between the United States and China, particularly in areas such as trade tariffs, restrictions on exports, and the transfer of advanced technologies.

Semiconductor manufacturing remains an especially contentious issue, given its pivotal role in both global technological infrastructure and national defense.

These components are essential in a wide range of civilian and military applications, making control over them strategically important.

According to the report, representatives from the Dutch Ministry of Foreign Affairs met in June with officials from a US agency focused on safeguarding sensitive technologies.

The discussion centered on Nexperia, which is under the ownership of the Chinese conglomerate Wingtech.

During the meeting, American officials reportedly stressed the importance of removing the company’s chief executive, who is also the founder of Wingtech, Zhang Xuezheng. This step, they argued, was necessary to sidestep US export limitations.

“It is problematic that the CEO of the company is still the same Chinese owner,” the US stated, as recorded in the meeting notes.

“It’s almost certain that the CEO should be replaced to qualify for an exemption on the entity list.”

Earlier this week, the Dutch Ministry of Economic Affairs declared that its intervention in Nexperia was prompted by “recent and acute signals of serious governance shortcomings and actions” at the company.

Authorities pointed to potential threats involving “technological expertise and capabilities in the Netherlands and Europe.”

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