How a Mid-Tier Chipmaker Became the Latest Pawn in the U.S.-China Tech Cold War
In a dramatic move that underscores the widening ripple effects of U.S.-China tech tensions, the Dutch government has taken direct control of Nexperia—a Netherlands-based semiconductor company owned by Chinese firm Wingtech. The takeover, finalized on September 30, 2025, came after months of behind-the-scenes pressure from Washington officials concerned about national security and supply chain vulnerabilities.
Though Nexperia doesn’t produce cutting-edge AI chips, its role in manufacturing older—but essential—semiconductors used in everything from cars to power grids made it too strategically important to ignore.
What Is Nexperia—and Why Does It Matter?
Headquartered in Nijmegen, the Netherlands, Nexperia specializes in mature-node chips—the kind that power everyday electronics like smartphones, electric vehicles, and industrial machinery. Unlike advanced processors from TSMC or Intel, these chips are less glamorous but far more ubiquitous.
The company operates a truly global footprint:
- Silicon wafer production in the UK and Germany
- Chip assembly and testing in China, the Philippines, and Malaysia
- R&D centers across Europe and Asia
It employs over 14,000 people worldwide and supplies components to major automakers like BMW and Volkswagen—making its stability critical to European industrial output.
From Corporate Ownership to State Control
Until recently, Nexperia was a wholly owned subsidiary of Wingtech Technology, a Chinese electronics conglomerate that acquired it from NXP Semiconductors (formerly part of Philips) in 2018. The deal raised eyebrows at the time but was approved under less stringent foreign investment rules.
That changed in December 2024, when the U.S. Department of Commerce added Wingtech to its Entity List, restricting its access to American technology. Then, in June 2025, U.S. officials escalated their concerns.
“The fact that the company’s C.E.O. is still the same Chinese owner is problematic,” U.S. diplomats told the Dutch Ministry of Foreign Affairs, according to court documents later published in Amsterdam.
Washington urged the Netherlands to either replace CEO Zhang Xuezheng or intervene directly. When no action was taken, the U.S. expanded its trade blacklist on September 30—effectively cutting Nexperia off from key American tools and software.
Hours later, Dutch Economic Affairs Minister Vincent Karremans announced the government would assume control of Nexperia “to ensure continuity of supply in times of crisis.”
A Precedent with Global Implications
This marks one of the first times a European government has nationalized a tech firm primarily due to U.S. geopolitical pressure—not domestic scandal or financial collapse.
Analysts warn the move could set a dangerous precedent:
- Foreign investors may shy away from European tech assets
- China could retaliate by targeting EU-owned firms in Asia
- Global supply chains may further fragment along political lines
Caught in the Crossfire
Employees at Nexperia’s German and British plants say they’re confused and anxious. “We’re just making chips that go into brake systems,” said one engineer who asked not to be named. “Now we’re suddenly part of a spy thriller?”
Meanwhile, Wingtech has remained silent. But Chinese state media has criticized the Dutch move as “economic coercion under American direction.”
What Comes Next?
The Dutch government insists the intervention is temporary and aimed at preserving jobs and supply security—not severing ties with China. But with U.S. elections looming and tech decoupling accelerating, the path forward is murky.
One thing is certain: in the new era of tech nationalism, even mid-tier chipmakers can’t stay neutral.
