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2 hours ago
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In a move that could dent China’s relations with the European Union, Chinese technology company Wingtech said control of its Dutch subsidiary Nexperia has been effectively frozen, following an intervention by a government ministry and court in the Netherlands.
In a corporate filing dated October 13, lodged with the Shanghai Stock Exchange on Sunday, Wingtech said semiconductor manufacturer Nexperia is now under temporary external management following an order from the Dutch Ministry of Economic Affairs.
In a WeChat post on Sunday that was subsequently deleted, Wingtech lashed out at the Dutch move and its claim that the action was taken for reasons of “national security”.
On Sunday evening, the Dutch government issued a statement confirming that it had “invoked the Goods Availability Act due to serious governance shortcomings at semiconductor manufacturer Nexperia”, a decision that it said was “to prevent a situation in which the goods produced by Nexperia (finished and semi-finished products) would become unavailable in an emergency”.
The statement said the ministry had observed “recent and acute signals of serious governance shortcomings and actions” within Nexperia.
“These signals posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities. Losing these capabilities could pose a risk to Dutch and European economic security,” it said, naming the automotive sector as being particularly vulnerable.
