Tensions between the West and China have escalated with the Dutch government’s intervention in the management of Nexperia, a chip manufacturer. Experts say this is one of the clearest signals of a shifting balance of power in the global semiconductor industry.
The announcement also came during a busy week on the economic calendar, prompting traders to reassess global risk sentiment and driving additional volatility across major currency pairs — most notably GBPUSD, which saw sharp intraday swings as investors reacted to rising geopolitical risks.
Following the announcement of the company’s control transfer to the state, shares of Wingtech Technology, Nexperia’s Chinese parent company, fell by almost 10% immediately, reflecting investors’ concerns over expanding anti-Chinese measures in Europe. Conversely, the securities of semiconductor companies focused on the EU domestic market — particularly STMicroelectronics and Infineon — noticeably strengthened on European platforms. At the same time, ES futures rose in the U.S., indicating heightened expectations of support for European manufacturers under the EU’s technological sovereignty policy.
Guided by national security interests, the Dutch government has taken control of Nexperia, which has been owned by the Chinese company Wingtech Technology since 2019. The authorities justified their actions as necessary to secure critical component supplies and preserve technological expertise in Europe, continuing the EU’s policy of protecting strategic assets amid rising dependence on Asian suppliers.
Earlier, the Dutch Ministry of Economy stated that Chinese control could threaten national interests and disrupt Nexperia’s product availability in the event of an emergency. The Minister of Commerce now has the authority to block and overturn decisions of the company’s board of directors. Subsequently, the Dutch court suspended CEO Zhang Xuezheng and appointed an independent executive with no ties to China. With nearly all shares placed in trust, the move effectively amounts to nationalization.
The situation has sparked tensions between the company’s European headquarters and its Chinese division. The latter circulated a letter stating that employees in China had lost access to corporate systems and payments, and the structure itself intended to act independently. The European leadership denied these claims, calling them false and emphasizing that Nexperia continues to fulfill its obligations to customers and employees in China.
The rumors about the Chinese division’s independence were spread by the suspended director Zhang Xuezheng. The Dutch authorities highlight that his actions have no legal force. Vincent Karremans, the country’s economy minister, said he intended to discuss the situation with his Chinese counterparts, but emphasized that the decision was driven not by politics, but by the need to protect Europe’s critical infrastructure.
The Chinese unit, in its turn, views the move as political pressure and interference in business. Beijing has already restricted the export of certain product categories manufactured by Nexperia and its contractors in China, increasing the risk of technological chain disruptions that may affect supplies for the European automotive and electronics industries.
Wingtech was added to the U.S. sanctions list in 2024 and has already faced restrictions on exporting technology and equipment. Its dependence on contracts with Western companies, including Apple through Luxshare Precision Industry, makes the situation even more sensitive. If the crisis between Amsterdam and Beijing escalates further, Nexperia could become the first major victim of a new wave of technological protectionism, where not only property but also the sustainability of global supply chains are at risk.
The Netherlands’ actions demonstrate that Europe is shifting from declarations of technological sovereignty to practical steps. Will the EU be able to maintain a balance between protecting national interests and remaining integrated within the global technology ecosystem, where China continues to play a key role?