Dutch government invoked a Cold War-era law on Nexperia

The Dutch government invoked a Cold War-era law (Goods Availability Act) on September 30, 2025, to seize control of Nexperia, citing "serious governance shortcomings" that threatened crucial technological knowledge. Nexperia, owned by China's Wingtech since 2019, produces essential semiconductors for the European automotive industry.

Key Findings from Analysis

1. Geopolitical Escalation: This represents a significant escalation in the technology cold war between Western nations and China
2. Chinese Response: Beijing "firmly opposes" the takeover, calling it a violation of "contractual agreements and market principles" and accusing the US of meddling in Dutch legal procedures
3. Immediate Consequences:
- China has banned Nexperia from exporting certain goods since October 4
- Major German automakers (BMW, Mercedes-Benz, Volkswagen) are monitoring supply chain impacts
- BMW confirmed parts of its supplier network are already affected
4. Historical Context: This follows the UK government's 2022 blocking of Nexperia's acquisition of Newport Wafer Fab
5. Broader Implications:
- Weaponisation of Cold War-era legislation for modern technology conflicts
- Vulnerability of global supply chains to geopolitical tensions
- Potential chilling effect on Chinese investment in European technology
- Risk of broader decoupling between Chinese and European technology sectors

Critical Analysis Points

- The timing coincides with Washington's December 2024 decision to place Wingtech on its "entity list"
- European automakers face particular vulnerability due to Nexperia's role in producing essential basic chips
- The case demonstrates semiconductor technology has become a primary battlefield in geopolitical competition

Netherland | Nexperia, Wingtech, Chips | |