Who is Nexperia ?
Nexperia is a European semiconductor company based in Nijmegen, the Netherlands.
It produces essential electronic components — diodes, transistors, MOSFETs, and logic circuits — used in mobile devices, automobiles, consumer electronics, and industrial systems.
The company is controlled by China’s Wingtech Technology, a large tech manufacturer integrated into global supply chains.
The origins of the dispute
- Chinese Acquisition
Over the past few years, Wingtech progressively acquired full control of Nexperia, incorporating it into its broader technological ecosystem. - U.S. Restrictions and the “Entity List”
Wingtech was placed on the U.S. Department of Commerce’s Entity List, which restricts access to American technology for companies seen as national security risks.
New rules extended these restrictions to any entity owned 50% or more by a listed company — bringing Nexperia under the same export controls. - Dutch Government Intervention under Emergency Law
On 30 September 2025, the Dutch government invoked the Goods Availability Act to intervene in Nexperia’s operations.
The Ministry of Economic Affairs justified the measure by citing “serious governance deficiencies” and the risk that critical technological knowledge could be transferred outside Europe.
Under this law, the Minister can suspend or reverse corporate decisions that threaten the continuity or strategic importance of a Dutch enterprise.
Day-to-day operations were allowed to continue under supervision. - Court Action: Enterprise Chamber Decision
On 7 October 2025, the Amsterdam Enterprise Chamber (a specialized branch of the Court of Appeal) ruled that there were “reasonable grounds to doubt the sound management” of Nexperia under its Chinese CEO, Zhang Xuezheng.
The court suspended Zhang and transferred Wingtech’s voting rights to an independent court-appointed administrator. - Immediate Reactions
- Wingtech condemned the intervention as politically motivated and announced it would pursue legal remedies.
- Wingtech’s shares on the Shanghai Stock Exchange fell by nearly 10%.
- The Dutch government emphasized that the measure was temporary and preventive, not an outright expropriation.
- China lodged a formal protest, calling the move discriminatory.
Legal and institutional dimensions
- Legality of State Intervention
The Goods Availability Act was originally designed to secure supply chains during crises (e.g., energy or food shortages). Using it for a tech-industry case is unprecedented and raises questions about proportionality and necessity. - Judicial Oversight and Remedies
Ministerial decisions can be challenged before Dutch courts. The current suspension and voting transfer are interim measures; Wingtech is expected to contest them. - Property Rights and Compensation
Although the Dutch state did not take ownership, the intervention effectively limited the owner’s control — potentially triggering claims for compensation or breaches of international investment protection treaties. - EU Law Compatibility
The case could test the boundaries of EU rules on foreign direct investment screening, freedom of establishment, and competition law. It also exposes the tension between national sovereignty and the EU’s single market principles.
Strategic implications
- A Signal of Europe’s Tech Sovereignty Turn
The Dutch move marks a decisive shift toward the protection of Europe’s semiconductor sector — a field long dominated by Asian and American players. - Fragmentation Risks
If other EU member states adopt similar unilateral actions, Europe’s industrial policy could become fragmented, undermining collective coordination and investor confidence. - Strained Relations with China
Beijing is likely to retaliate, whether through commercial restrictions, delayed regulatory approvals for European firms, or diplomatic pressure. - Investor Uncertainty
The Nexperia case may reshape how foreign investors assess political and regulatory risk in Europe’s high-tech sector. - A Catalyst for EU-Wide Reform
The episode could accelerate EU efforts to harmonize rules on foreign investment screening and critical technology protection — transforming what is now a patchwork of national tools into a coherent European framework.
Europe’s “tech sovereignty” has moved from rhetoric to enforcement.
The Nexperia case shows that national governments, starting with the Netherlands, are ready to use emergency powers to defend strategic technology — even at the cost of confrontation with China and legal uncertainty within the EU.