Dutch government ousts Nexperia (chipmaker) CEO over alleged China ties

The Dutch government has ousted the Chinese CEO of Nexperia, a semiconductor chip manufacturer based in Nijmegen. According to the Ministry of Economic Affairs, the caretaker government intervened at Nexperia because it feared that crucial technologies and capabilities would disappear from the Netherlands and Europe.

In a press release published on Sunday evening, the Ministry said there were “acute signals of serious governance shortcomings and actions” at Nexperia. The Ministry said there was a threat of a knowledge leak and potential risk to Dutch and European economic security.

According to NOS, documents from Nexperia’s Chinese owner, Wingtech, show that the Enterprise Chamber of the Amsterdam Court of Appeal has removed Nexperia CEO Zhang Xuezheng from his position early last week. He had already been suspended before that.

The Dutch government implemented the Goods Availability Act against Nexperia, allowing the Netherlands to block or reverse decisions within the company if these are “(potentially) harmful to the interests of the company, to its future as a Dutch and European enterprise, and/or to the preservation of this critical value chain for Europe.”

“This is a measure the government uses only when absolutely necessary,” the Ministry said. By intervening, the government hopes to mitigate the risk of a situation where Nexperia chips are unavailable for the Dutch and European industry in an emergency.

Nexperia makes chips used in phones, cars, and solar panels, among other everyday items. The company was acquired by Wingtech in 2019.

According to NOS, the Goods Availability Act has been in place since 1952, and this is the first time a Dutch government has used it. The act allows Ministers to intervene in companies to secure the continued availability of certain goods when preparing for emergency situations. Nexperia can appeal against the measure in court.