The Dutch government announced on Sunday it will intervene at semiconductor maker Nexperia, describing the company’s activities as a “threat to the continuity and protection of key knowledge and technological capabilities” in the Netherlands and Europe, according to statements cited by the BBC.
The Ministry of Economic Affairs said it is acting under the national law on the availability of goods, pointing to “clear signals of serious shortcomings in management” at Nexperia.
The law allows intervention in exceptional cases, including risks to economic security and the supply of essential goods.
Authorities said the move aims to prevent a scenario in which Nexperia’s chips become unavailable during emergencies.
The government did not explain why it deemed the firm’s operations risky or what specific measures the intervention will entail. It added Nexperia’s production may continue as normal.
Wingtech, Nexperia’s China-based owner, said on Monday it will take steps to protect its rights and seek support from its government. Wingtech’s Shanghai-listed shares fell 10% on Monday morning.
The BBC reported the development could further strain ties between the European Union and China, which have been tested in recent months by trade disputes and Beijing’s closer relations with Russia.
Nexperia supplies semiconductors used in automobiles and consumer electronics. The company was previously ordered to sell its Newport, Wales, chip facility after lawmakers and ministers raised national-security concerns, and it now operates a site in Stockport, Britain.
Wingtech is among the companies placed by the United States on its “entity list,” which generally bars U.S. firms from exporting American-made goods to listed entities without special permission.
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Source: BBC, Interia Biznes