Netherlands intervenes at chipmaker Nexperia over security concerns

The Netherlands has intervened in the matter of chip manufacturer Nexperia, fearing that crucial technological knowledge and production capacity could leave the country and Europe, NOS news reported on Monday.

The Ministry of Economic Affairs identified "acute signals of serious administrative shortcomings and actions" at the Nijmegen-based company but declined to provide further details, the report said.

According to documents from Nexperia's Chinese parent company, Wingtech Technology, the firm's top executive, Zhang Xuezheng, was suspended and later removed from his position by the Enterprise Chamber of the Amsterdam Court of Appeal early last week.

In a statement, the ministry said there is a threat of a knowledge leak, which could jeopardize Dutch and European economic security. The intervention allows the Netherlands to block or reverse company decisions that could be "harmful to the interests of the company, its future as a Dutch and European enterprise, or the preservation of this crucial value chain for Europe."

The government invoked the 1952 Goods Availability Act, a law used for the first time, saying it acts "only when absolutely necessary." The move aims to ensure chip availability for Dutch and European industries during emergencies, the report added.

Reacting to the Dutch government's restrictive measures against Nexperia, China's Foreign Ministry spokesman Lin Jian said Beijing "always opposes overstretching the concept of national security and discriminatory practices against companies from specific countries."

"Relevant countries should earnestly abide by market principles and refrain from politicizing economic and trade issues," Lin told reporters in Beijing, adding that China "is determined to safeguard its legitimate rights and interests," according to the Beijing-based Global Times.