In a striking escalation of global tech tensions, the Dutch government has forcibly taken control of Chinese-owned semiconductor company Nexperia, citing “serious governance shortcomings.” The rare move — officially framed as a national security measure — came after intense pressure from Washington, which had warned The Hague about potential security risks linked to the company’s Chinese leadership.
According to court documents released Tuesday, the decision followed direct intervention by U.S. officials, who urged the Netherlands to replace Nexperia CEO Zhang Xuezheng in order for the company to be removed from the U.S. Entity List — a trade blacklist restricting exports of American technology. Minutes from a June meeting between Dutch and U.S. authorities, cited in the Amsterdam Court of Appeal, quote American officials as saying:
“The fact that the company’s CEO is still the same Chinese owner is problematic. It is almost certain that the CEO will have to be replaced to qualify for the exemption from the entity list.”
Nexperia is a fully owned subsidiary of Wingtech Technology, a partially state-owned Chinese firm that was added to the U.S. Entity List late last year. Under new U.S. export control rules, any company at least 50% owned by a blacklisted firm automatically falls under the same restrictions, effectively pulling Nexperia into the ban’s scope.
The Dutch Economic Affairs Ministry described the takeover as a “highly exceptional” step intended to safeguard national interests and ensure the availability of essential semiconductor products during potential global crises.
Impact on global supply chains
Based in Nijmegen, Nexperia manufactures low- to mid-range chips used in consumer electronics, automobiles, and industrial machinery, operating additional facilities in Germany and the United Kingdom. Following the Dutch court order, CEO Zhang Xuezheng has been suspended, and the company’s operations are now under state-appointed supervision.
The move adds fresh strain to global semiconductor supply chains already disrupted by export restrictions between the U.S. and China. Earlier this month, Beijing retaliated by imposing new export controls on Nexperia, banning the firm and its affiliates from shipping certain China-made components abroad. The company is currently seeking exemptions from these measures.
Chinese backlash
In a sharp response, Nexperia’s parent company Wingtech condemned the takeover as “discriminatory treatment”, accusing the Dutch government of bowing to “external political pressure.”
“Wingtech will never succumb to external political pressure,” the company said, adding that it has launched legal and diplomatic actions to challenge the decision and demand its reversal.
The Nexperia case underscores how Europe is becoming a key battleground in the ongoing U.S.-China tech war, with Washington pushing its allies to align more closely with its export controls — even at the cost of diplomatic and commercial friction.
