File photo: VCG
A Dutch seizure of computer chip maker Nexperia, owned by Chinese company Wingtech, came after rising US pressure on the company, a court ruling released on Tuesday local time showed, Reuters reported.
Newly disclosed court documents reveal that US officials informed their Dutch counterparts that the Chinese CEO of Nexperia "will have to be replaced" for the company to qualify for an exemption from Washington's entity list, according to media report.
The disclosure comes after the Dutch Ministry of Economic Affairs revealed that it had invoked the "Goods Availability Act" against Nexperia in September, citing the need "to prevent a situation in which the goods produced by Nexperia (finished and semi-finished products) would become unavailable in an emergency."
The Dutch court document said records from a June 12 meeting between US Commerce Department officials and the Dutch Foreign Ministry showed rising pressure to remove Nexperia's Chinese CEO to help keep the company off the list, according to Reuters.
"The fact that the company's CEO is still the same Chinese owner is problematic," the filing said, citing minutes from the Dutch-US meeting, according to Reuters. "It is almost certain the CEO will have to be replaced to qualify for the exemption from the entity list."
In response to a media question at a regular press conference on Wednesday — which noted that Nexperia claimed it had been banned from exporting goods from China while the Dutch government restricted the company on national security grounds, and asked whether China had imposed export controls on Nexperia — Chinese Foreign Ministry spokesperson Lin Jian said the issue was highly specific and should be referred to the competent authorities in China.
"I would like to reiterate that China firmly opposes the overstretching of the concept of national security and discriminatory practices targeting specific countries or companies," Lin said. "Countries concerned should truly adhere to market principles and refrain from politicizing economic and trade issues. China's determination to safeguard its legitimate rights and interests remains unwavering."
Wingtech was put on a US "entity list" in December 2024. Washington last month expanded that list to include majority-owned subsidiaries, according to Reuters.
Wingtech on Monday told investors in China that it did not expect short-term disruption to its production and research efforts from the Dutch measures. It is working on a legal appeal, a source with direct knowledge of the meeting told Reuters.
The source said that company executives in the meeting believed that Dutch authorities were acquiescing to the United States and added that the company was very confident that it could have the decision reversed, according to Reuters.
Nexperia is one of the largest makers globally of basic chips such as transistors that are not technically sophisticated but are needed in large volumes. Its biggest manufacturing site is in Hamburg, Germany, but most of its chips are packaged and assembled into larger products in China, according to Reuters.
Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times that business operations should be protected from undue government interference. "Government oversight over enterprises must remain within a reasonable scope of authority," he said. "It is particularly inappropriate when the laws or regulations of one country are used to intervene in the internal affairs of another sovereign nation's enterprises."
Zhou said such intervention undermines fair competition and distorts market order. "Arbitrary restrictions aimed at limiting competitors will inevitably distort the market, erode the principles of fair play, and damage global economic credibility," he noted. "For an economy that relies on competition to drive optimization under globalization, such practices inflict serious harm."
Wingtech Technology, in a Sunday statement published on its WeChat account, stated that the Dutch government's global operational freeze on Nexperia, based on unsubstantiated "national security" grounds, constitutes a case of overreaching driven by geopolitical bias rather than a factual risk assessment.
As a long-term strategic shareholder, Wingtech Technology will not yield to external political pressure, the company said. "We have initiated all available legal and diplomatic channels, requesting that the Dutch government immediately revoke the erroneous directive, cease systemic discrimination against Chinese enterprises, and uphold openness and cooperation of the global semiconductor industry chain."
The company stated that since Wingtech Technology acquired Nexperia, it has always adhered to the laws and regulations of various countries, operating with transparency and standardized governance.