The Dutch government announced on Sunday its decision to intervene at Nexperia, a chipmaker owned by the Chinese firm Wingtech, citing concerns over potential risks to economic security in the Netherlands and Europe. Wingtech responded on Monday, indicating plans to take steps to safeguard its rights and seek government assistance.
This intervention has the potential to exacerbate existing tensions between the European Union and China, especially in light of recent trade disputes and China’s ties to Russia. Nexperia previously sold its silicon chip facility in Newport, Wales, after national security apprehensions were raised by politicians, but it still operates a facility in Stockport, UK.
The Dutch Ministry of Economic Affairs invoked the Goods Availability Act, which permits government intervention under extraordinary circumstances, specifically when there are threats to national economic security and essential goods supply. The government stated that the intervention aims to avert a situation where Nexperia’s semiconductor products could become unavailable during emergencies.
Nexperia produces semiconductors utilized in automotive and consumer electronics. However, the government did not provide specific details regarding the perceived risks associated with the firm’s operations. A spokesperson for the economic affairs ministry mentioned that no further information could be disclosed at this time.
Shares of Wingtech, listed in Shanghai, experienced a 10% decline on Monday following the announcement. Wingtech is also included on the US “entity list,” which restricts American companies from exporting to it without special permits. The US Commerce Department recently tightened its regulations, adding firms that are majority-owned by Chinese entities to this list.
Source: https://www.bbc.com/news/articles/ckgk21nng0vo?at_medium=RSS&at_campaign=rss