The Dutch government takes over Chinese-owned semiconductor manufacturer Nexperia
According to a report by the Financial Times on Sunday, the Dutch government has taken over the Chinese-owned semiconductor manufacturer Nexperia. The reason is that this previously Dutch semiconductor company, which was acquired by Chinese capital, recently experienced serious governance deficiencies and misconduct, which could threaten Europe's economic security.
Nexperia was originally owned by the Dutch giant NXP Semiconductor (previously Philips) and was sold to the Chinese smartphone manufacturer Wintech Technology in 2018 for 3.6 billion U.S. dollars (3.1 billion euros).
This led to Nexperia being placed on the U.S. list of questionable entities. Notably, the British government in 2022 asked this Dutch manufacturer to abandon its plan to acquire the UK's largest chip factory.
The Dutch government announced on October 12 (Sunday) that, in order to protect its national and European interests, it had taken over Nexperia, a leading semiconductor manufacturer in Europe under a Chinese group. This move has intensified the friction between Western countries and Beijing on access to high-end technology.
Isabelle Chapelon, an economic columnist at Le Monde, pointed out that after years of naivety, European countries have strengthened their regulatory efforts to protect their strategic flagship companies.
The Dutch Ministry of Economic Affairs is invoking the "Availability of Assets Act." This special emergency measure allows the government to block or revoke internal company decisions, provided these decisions are considered to be detrimental to the company's own interests in the Netherlands and Europe.
According to a report by NRC, the Dutch government took this measure because it was worried that its Chinese owner Wintech Technology might leak chip technology to China.
According to a report by the Financial Times on Sunday, the Dutch government has taken over the Chinese semiconductor manufacturer Nexperia, following the Dutch accusation that the company had "serious governance deficiencies," which would threaten European economic security.
The Dutch Ministry of Economic Affairs stated on Sunday that this action was due to "the threat to the continuity and assurance of key technological knowledge and capabilities in the Netherlands and Europe."
This has escalated the friction between Western countries and China regarding access to high-end technologies such as advanced semiconductors and critical raw materials.
On Thursday, China announced a complete restriction on rare earth exports used in products ranging from automobiles to wind turbines.
The Dutch Ministry of Economic Affairs said that Nexperia recently experienced serious governance deficiencies and misconduct. Nexperia is headquartered in the Netherlands and has been controlled by the Chinese technology group Wafertech since 2019.
The Dutch Ministry of Economic Affairs added: "The takeover of Nexperia aims to prevent the supply of finished and semi-finished products produced by it in case of emergency."
The chips produced by Nexperia are widely used in the European automotive industry and consumer electronics sector.
The Dutch Minister of Economic Affairs, Vincent Krammer, can now veto or revoke decisions made by the board of Nexperia. The department took action on September 30, but it was not publicly announced until October 12.
In 2017, a Chinese government-backed investment consortium acquired the Dutch chip manufacturer Nexperia, which was spun off from NXP Semiconductor, for 2.75 billion U.S. dollars. The next year, the consortium began selling its shares to Wintech Technology.
The Chinese Foreign Ministry stated on Monday that China opposes the abuse of the concept of national security and opposes discriminatory measures against Chinese enterprises.
Zheng Jian, a spokesperson for the Chinese Foreign Ministry, said that the Netherlands should "truly abide by market principles and avoid politicizing trade and economic issues."
Original: www.toutiao.com/article/1845920485730571/
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