For great ills, great remedies. The Netherlands has decided to place Nexperia, a semiconductor producer based in the country but owned by the Chinese group Wingtech, under direct state control. The Ministry of the Economy has activated a special law, the “Goods Availability Act”, normally reserved for emergency cases.
Major maneuvers to avoid unpleasant surprises
Reason given: “ serious governance gaps » within the company. Clearly, The Hague believes that the company could no longer be able to guarantee the continuity of its activities in Europe in the event of a crisis. “ These signals posed a threat to Dutch and European economic security », explains the government, which however ensures that the production of chips continues “ Normally ».
Minister Vincent Karremans can now block any decision by Nexperia deemed contrary to the interests of the country. The idea is simple: keep control of a strategic technology without stopping the activity. The Chinese reaction was obviously not long in coming. The China Semiconductor Industry Association expressed its “ serious concern » and denounced a measure “ discriminatory » against foreign companies. For its part, Wingtech promised to “ defend your rights » and seek legal support.
We are currently witnessing a global battle for control of semiconductors, which have become one of the vital nerves of the modern economy. After the 2020 supply crisis, governments are seeking to bring production back home. The European Union adopted the “Chips Act” to strengthen its sovereignty, while the United States is investing massively in its own factories. ASML, the global chip engraving machine giant, is also based in the Netherlands.
This is not the first time that Nexperia has found itself in turmoil. In the United Kingdom, the company had already been forced to sell its Newport factory in 2022, for similar reasons. In the United States, the parent company Wingtech has been on the Commerce Department’s famous “entity list” since last December, which limits exports of American technologies to companies deemed to be at risk for national security.
In the event of tensions with China, a company controlled by Beijing could be tempted to cut off supplies to Europe. To avoid finding themselves without essential components for cars, smartphones or factories, European governments now prefer to take the lead, even if it means offending the Chinese giant.
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