Netherlands Invokes Emergency Law to Regain Control of Nexperia
On September 30, 2025, the Dutch government made an unprecedented decision by invoking an emergency law from 1952 to place Nexperia, a semiconductor manufacturer owned by the Chinese group Wingtech, under supervision. This intervention, the first of its kind since the adoption of the Goods Availability Act over 70 years ago, aims to protect technological capabilities deemed essential for Europe. The case reveals a governance conflict that led to the suspension of CEO Zhang Xuezheng and highlights the growing tensions surrounding European technological sovereignty.
An unprecedented guardianship prompted by managerial failures
The Dutch Ministry of Economic Affairs invoked the Goods Availability Act on September 30, 2025, an emergency law created in 1952 but never used until now. This extraordinary decision concerns Nexperia, a company based in Nijmegen that employs over 12,500 people and produces 110 billion chips annually, with a revenue of $2.06 billion in 2024.
The government justified its intervention with serious governance issues that threatened the continuity of the company's European operations. For a year, Nexperia is now prohibited from relocating parts of the company, dismissing executives, or making strategic decisions without explicit permission from the Dutch government.
This measure aims to prevent Nexperia's products, used notably in the European automotive industry and consumer electronics, from becoming unavailable. Concurrently, the Amsterdam Enterprise Chamber suspended Zhang Xuezheng from his position as CEO on October 7, citing valid reasons to doubt the sound management of the company. The voting rights on shares held indirectly by Wingtech Technology have been placed under the control of an independent administrator appointed by the court. Stefan Tilger, the Chief Financial Officer, has been appointed as interim CEO, while Guido Dierickx has been named a non-executive director by the Enterprise Chamber.
An Internal Conflict Highlighting Sino-European Tensions
The government's intervention stems from a financial dispute that erupted within Nexperia's management. Zhang Xuezheng, also founder and chairman of Wingtech, might have attempted, according to documents published by the Amsterdam Court of Appeal, to use Nexperia's resources to support WingSkySemi, his silicon wafer manufacturing plant in Shanghai, which was facing financial difficulties. Although WingSkySemi is not part of the Wingtech group, Zhang is said to have sought to place orders worth $200 million, despite the fact that the Dutch company only needed $70 to $80 million worth of wafers for the year.
On September 4, 2025, Zhang revoked the banking powers of three Nexperia financial executives, including the chief financial officer, and granted authority to three individuals without specific financial experience. When board members confronted Zhang about these actions, they were reportedly summarily dismissed. Ruben Lichtenberg, Nexperia's legal director, expressed serious concerns, stating that these actions did not reflect good governance and were not in Nexperia's best interest. This situation prompted alarm among European leaders, who alerted Dutch authorities and the Enterprise Chamber.
Geopolitical Impacts Amid a Technological War Context
The Nexperia case unfolds against a backdrop of geopolitical tension, where technological sovereignty has become a major issue. Wingtech acquired Nexperia in 2018 for $3.6 billion; the company was previously owned by NXP Semiconductors, which originated from Philips. In December 2024, Wingtech was placed on the US blacklist of entities subject to export controls. On September 29, 2025, the US Bureau of Industry and Security extended export control restrictions to entities owned at least 50% by one or more entities on this list, directly affecting Nexperia. China responded firmly to the Dutch takeover. On October 4, 2025, the Chinese Ministry of Commerce issued an export control notice prohibiting Nexperia China and its subcontractors from exporting certain finished components and subassemblies manufactured in China. The China Semiconductor Industry Association opposed what it described as the misuse of the national security concept to impose discriminatory restrictions on the foreign subsidiaries of Chinese companies. Wingtech stated it would take action to protect its rights and seek government support, as its stock fell 10% on the Shanghai Stock Exchange following the Dutch intervention announcement. This case echoes the 2022 episode when the British government ordered Nexperia to divest 86% of the Newport Wafer Fab plant in Wales for national security reasons. For the Netherlands, this decision marks a turning point in their geopolitical stance, having already restricted exports to China in 2023 of advanced equipment from Dutch giant ASML, the world leader in semiconductor lithography machines.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
