Dutch government takes control of Chinese-owned chipmaker

The country’s economic affairs ministry on Sunday said it had invoked the Goods Availability Act late last month to take control of the chipmaker Nexperia. The Chinese-owned manufacturer produces semiconductors used in automotive and consumer electronics and is headquartered in the Dutch city of Nijmegen. Dutch officials said they assumed control of the company to safeguard chip supplies in Europe amid rising trade tensions with China. The government said that prompting its decision were shortcomings in governance and risky operations within the business. Under the act, the company’s regular production will be allowed to continue, while the Dutch government has the authority to block or reverse company decisions.

What has the company said? The owner of the semiconductor business, Wingtech Technology, said in a filing with the Shanghai Stock Exchange that its chairman had been suspended from his role as executive director of Nexperia. Meanwhile, the state-supported China Semiconductor Industry Association said Tuesday it supports Wingtech in defending its rights to maintain control over its business, according to the South China Morning Post. 

Dig deeper: Read Christina Grube’s report about a framework for a trade deal between the United States and the European Union.