Summary
The Dutch government has stepped in at Nexperia, a Chinese-owned chip company based in the Netherlands, due to concerns about economic security in the Netherlands and Europe. This could lead to more tension between the European Union and China. The government wants to ensure Nexperia’s chips remain available during emergencies.
Key Facts
- The Netherlands intervened at Nexperia due to potential risks to economic security.
- Nexperia is a chipmaker owned by the Chinese company Wingtech.
- Nexperia has been told to sell its silicon chip plant in Newport, Wales because of national security concerns.
- The Dutch government used the Goods Availability Act to intervene, a law for exceptional circumstances to protect economic security.
- The government believes Nexperia's operations threaten crucial technological knowledge and capabilities.
- Nexperia's production can continue as usual, despite the intervention.
- Wingtech's shares in Shanghai dropped by 10% after the news.
- Wingtech is already on a U.S. list that restricts exports of American-made goods to them.
