Dutch seizure of Nexperia sends China’s Wingtech shares down 10%

China’s Wingtech Technology ￰0￱ 10% after the Dutch government took control of its European chip unit, Nexperia, in a surprise decision that deepened global scrutiny of Chinese technology investments in ￰1￱ Dutch government utilized the Goods Availability Act in September to acquire ￰2￱ the law, officials can stop or reverse major business decisions, and the government stated that it acted because Nexperia exhibited serious and urgent management ￰3￱ government seizes Nexperia for security reasons Dutch government officials stated that Nexperia exhibited signs of poor management , which could have ripple effects on the company’s ability to safeguard important chipmaking knowledge, designs, and equipment within ￰4￱ Goods Availability Act allowed the government to prevent Nexperia from making any major business changes for a period of one ￰5￱ cannot sell parts of its company, change its top management, or restructure its operations without permission from policymakers.

However, Nexperia can still manufacture and sell chips as usual, so its workers and clients are not affected; however, all important business decisions will be under strict ￰6￱ in The Hague did not specify the problems with Nexperia, but their statement indicated they had deep concerns about how the Chinese parent company, Wingtech, managed its European ￰7￱ say the Goods Availability Act is only used in emergencies, such as when the government needs to secure supplies of food, fuel, or medicine during a crisis. However, using it for a semiconductor company highlights just how important the Netherlands views chips as, comparable to energy or defense ￰8￱ say other Chinese-owned companies in Europe will likely be more careful about how they ￰9￱ could also prompt European governments to introduce new rules that make it more difficult for foreign buyers to acquire full control of companies that develop or design advanced ￰10￱ faces more global setbacks Wingtech has been facing growing resistance from Western governments as it tries to expand its reach in the global chip ￰11￱ company, based in China, acquired the Dutch chipmaker Nexperia in 2018 for approximately $3.6 billion, aiming to establish a strong international presence and compete with the world’s largest semiconductor ￰12￱ company’s troubles in foreign markets grew slowly.

Still, they became too much to ignore in 2022, when the British government ordered Wingtech to reverse its takeover of the United Kingdom’s largest microchip factory, Newport Wafer ￰13￱ British authorities stated that reviews indicated the acquisition might pose risks to national security and the country’s ability to produce critical chips ￰14￱ 2023, Wingtech also found itself on the ￰15￱ ￰16￱ list is a trade blacklist that limits how American firms can conduct business with foreign companies deemed to be security ￰17￱ restrictions made it extremely difficult for Wingtech to acquire the advanced machines, chips, and design tools it needed from U.

S. suppliers, which in turn harmed the relationship with partners and clients in Western ￰18￱ pressure on the company increased in 2025 when a senior Nexperia executive filed a court petition in the Netherlands, requesting an investigation into the company’s ￰19￱ petition alleged that there were serious issues within the company and requested temporary measures to ensure the safety of its ￰20￱ Dutch court responded by suspending Wingtech’s founder, Zhang Xuezheng, from all his roles at Nexperia until the investigation is ￰21￱ continues to operate despite these difficulties, and major automotive brands and consumer electronics companies across Europe and other regions still use its ￰22￱ are still operating, workers are still employed, and products are still being shipped, but there is now considerable uncertainty regarding the company’s ￰23￱ say that Wingtech’s experience is now a symbol of the growing tension between China’s global business ambitions and the West’s determination to protect its technological ￰24￱ began as a normal business expansion has evolved into a complex web of politics, trade restrictions, and security concerns that now extend far beyond the company ￰25￱ up to Bybit and start trading with $30,050 in welcome gifts