The Dutch government has just taken control of Nexperia, one of Europe’s leading semiconductor manufacturers, to guarantee the availability of its chips on European soil. This measure, based on the Goods Availability Actmarks a first in the industrial history of the Netherlands. It illustrates Europe’s desire to regain control of its strategic supply chains, as tension rises between Western powers and China.
From Dutch origins to integration into Chinese capital
Nexperia was born in 2017 from a split from the NXP Semiconductors group, itself heir to Philips Semiconductors. Sold in February 2017 to the Chinese fund JAC Capital, the company quickly became an independent player in the manufacturing of discrete components, MOSFETs, analog and logic integrated circuits intended for the automotive and electronics industry.
In December 2019, the Chinese group Wingtech Technology, manufacturer of IT and telecom equipment, finalized the purchase of 79.98% of the capital of Nexperia for 3.8 billion dollars (or approximately 3.3 billion euros). This operation, the largest Chinese acquisition ever made in the semiconductor sector, shifts the governance of the group to Chinese control.
Following this acquisition, Frans Scheper, Dutch CEO of Nexperia, steps down in March 2020, handing over management to Xuezheng Zhang (Wing), Chairman of the Management Board of Wingtech. Although the head office remains in Nijmegen, the company’s strategy and executive decisions are now driven from China.
A key company for European industry
Today, Nexperia employs more than 12,500 people across Europe, Asia and the United States.
The company designs and manufactures semiconductors essential to most of the world’s electronic products, ranging from automotive and industrial to mobile phones and consumer electronics.
Each year, Nexperia delivers more than 110 billion components, known for their efficiency in process, size, power and performance. Its commitment to innovation and sustainability is reflected in an expanding intellectual property portfolio and high-level certifications: IATF 16949, ISO 9001, ISO 14001 and ISO 45001.
The Dutch response: national security and industrial sovereignty
The Hague’s decision to take administrative control of Nexperia comes amid growing distrust of Chinese ownership of European technology assets. The Dutch Ministry of the Economy cites “serious governance failures” and a “threat to the continuity of critical technological capabilities on European soil”.
At the end of September, Minister Vincent Karremans therefore suspended executive director Zhang Xuezheng, froze all operations of assets or intellectual property for a period of one year, and entrusted temporary management to an independent administrator.
Wingtech denounces geopolitical interference
In response, Wingtech denounced in a press release distributed via its Wechat account and since deleted but saved by the Pekingnology newsletter, excessive interference motivated by geopolitical bias and a violation of the market principles and free competition defended by the European Union. “The Dutch government’s decision to freeze Nexperia’s global operations under the guise of national security constitutes excessive interference, driven by geopolitical bias rather than an objective assessment of risks.
This measure seriously contravenes the fundamental principles of the European Union, based on the market economy, fair competition and international trade standards.
We express our strong protest against this discriminatory treatment aimed at a company financed by Chinese capital. »
This tension is part of a climate of escalation where Beijing recently restricted exports of rare earths, used in particular in batteries and wind turbines, in response to American sanctions against its technology companies.
A turning point for European sovereignty
The Nexperia case demonstrates a change in European industrial policy, long based on the opening of markets, and which is now sliding towards an economy of security and technological control of its strategic assets.
