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Chinese Owners Locked Out of Dutch Chip Maker Nexperia

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Critical Infrastructure Security

Dutch Ministry Invokes National Security Law to Impose Domestic Control

Anviksha More (AnvikshaMore) ,
David Perera (@daveperera) •
October 13, 2025    

Chinese Owners Locked Out of Dutch Chip Maker Nexperia
Image: Shutterstock

The Dutch government said it is severing semiconductor chipmaker Nexperia from control by its Chinese parent after invoking a national security law allowing it to impose domestic control.

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The Dutch Ministry of Economic Affairs said late Sunday it found “serious governance shortcomings” at the Netherlands-based maker of semiconductors used in the European auto industry and in consumer electronics. Partially Chinese state-controlled Wingtech Technologies – then a little-known smartphone assembler – acquired Nexperia in 2018 for $3.6 billion.

The company disclosed in a Monday filing with the Shanghai Stock Exchange that a Dutch court on Oct. 7 sided with European company executives who sued Wingtech after receiving on Sept. 30 an order from the ministry invoking the Goods Availability Act. The law allows the Netherlands government to safeguard the availability of essential goods. The court agreed to suspend Chinese national Zhang Xuezheng as Nexperia CEO, to appoint an outsider in his place and put all of Wingtech shares, expect one, under the control of an independent third party.

The Dutch ministry said the order is meant to “prevent a situation in which the goods produced by Nexperia (finished and semi-finished products) would become unavailable in an emergency.” Wingtech shares fell by 10% in Monday trading, the maximum daily loss the Shanghai Stock Exchange generally permits.

The Dutch government acted after the U.S. Department of Commerce announced Sept. 29 that export control enforcement will automatically apply to companies at least half-owned by a parent company already subject to licensing for acquiring U.S. technology. The department added Wingtech in December 2024 to a blacklist imposing license requirements for exports with a presumption of not granting one. A Nexperia spokesperson at the time said the blacklisting would not apply to it, only to Wingtech. Inclusion on the so-called “Entity List” is informally known as being added to a “death list.”

The Chinese Ministry of Foreign Affairs said it opposed “overstretching the concept of national security and taking discriminatory measures targeting companies of a specific country.” A Wingtech senior executive on Sunday accused the Dutch government of using the American Sept. 29 expanded export control announcement as a pretext to seize control, although a Dutch ministry official said the United States wasn’t involved in the decision, reported the Wall Street Journal.

Semiconductor manufacturing and access to advanced chips is a competitive flashpoint between the United States and China. The Netherlands generally has followed suit with heightened export controls imposed by the U.S.

Chinese companies hoping to stay ahead of ratcheting U.S. restrictions have previously looked to Europe – including the 2018 acquisition of Nexperia, which Wingtech touted as an “extremely precious” win that would help Chinese “enterprises to catch up with foreign high-quality semiconductors.”

Wingtech’s relationship to the Chinese state hasn’t always been clear. Analysis triggered in 2021 by an ultimately thwarted acquisition of Newport Wafer Fab, the United Kingdom’s largest semiconductor facility, found that roughly a third of company shares traced back to the Chinese government.

Beijing has reacted to chip export restrictions with intensified efforts to cultivate domestic manufacturing, an effort that’s led it to acquiring manufacturing equipment and imposing its own trade controls, including a September ban on artificial intelligence chips made by Nvidia, the Financial Times reported. Chinese cyberespionage for trade secrets is a long-standing Western concern – including by Dutch military intelligence, which in 2024 called the Netherlands semiconductor industry a target of Chinese cyberattacks. Dutch Defense Minister Ruben Brekelmans earlier this year said Chinese cyberespionage targeting chip makers has only since intensified, reported Reuters.





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    Automating Security Auditing and Compliance

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    Educating Employees with Security Awareness Training

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    To achieve their goal, ethical hackers immerse themselves in the expanse of security breaches, exploits, and vulnerability scenarios. They leave no stone unturned. Their goal is to protect organizations from malicious attacks, ensuring that the digital fortress remains untouchable.

    Don't underestimate the importance of ethical hacking. As the world becomes increasingly interconnected, cybersecurity has never been more pressing. According to a report by Emergen Research, the cybersecurity industry is expected to expand at a compound annual growth rate (CAGR) of 12.0% to 13.4% from 2022 to 2030. This surge in demand reflects the critical importance of ethical hackers in fortifying digital infrastructure against the relentless onslaught of cyber threats.

    Embracing the Journey: Continuous Learning and Certification for Ethical Hackers

    Becoming an ethical hacker requires diverse skills and knowledge. Understanding the types of hackers is crucial, as it provides insights into how they operate. Armed with this knowledge, ethical hackers delve into cutting-edge tools and techniques. They leverage their skills to identify vulnerabilities and devise countermeasures.

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    The Tools of Ethical Hacking

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    References:

    "Cybersecurity Market, By Component (Hardware, Solution, Service), By Security Type, By Solution, By Application (IT & Telecom, Retail, BFSI, Healthcare, Defense & Government, Manufacturing, Energy, Others), By Region Forecast to 2032". Www.Emergenresearch.Com, 2023, https://www.emergenresearch.com/industry-report/cyber-security-market. Accessed 25 May 2023.

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    Cyber Insurance: An Essential Safety Net

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    The Rising Importance of Cyber Insurance

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    Cyber Insurance - An Investment Worth Making

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    PSL’s Easy Guide to Understanding Cybersecurity

    The world of cybersecurity can often feel like a maze of technobabble and obscure acronyms. Yet in an era where our lives increasingly depend on digital infrastructure, it's important to have a basic understanding of the terminology involved. Learning about cybersecurity can help you avoid common mistakes and limit the chance of becoming a victim of these crimes.

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    2) Malware

    Malware is any malicious software that can damage or infiltrate computers without the user's consent.

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    Virus

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    Worm

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    Trojan

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    Ransomware

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    Spyware

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    3) Phishing

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    4) Firewall

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    5) VPN (Virtual Private Network)

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    6) Encryption

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    7) Two-Factor Authentication (2FA)

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    8) Darknet/Dark Web

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    9) Data Breach

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    10) Botnet

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    Closing Thoughts

    Understanding cybersecurity is not just for the tech-savvy; it's for everyone. We are all potential targets for cyber threats, and comprehension of basic cybersecurity terminology can make a significant difference in safeguarding ourselves and our digital assets.

    Employing cybersecurity measures also helps to keep your digital data safe. This might include using a VPN, enabling two-factor authentication, or simply being wary of suspicious emails to prevent phishing attacks.

    Ultimately, it's not necessary for everyone to be a cybersecurity expert, but a basic understanding of the key terms can be an empowering first step in better securing your digital life. This newfound knowledge can provide you the confidence to navigate the online world with more safety and assurance.