Shares For Chinese-owned Chipmaker Nexperia Drop As Hague Takes Control Under Cold War Law

Benzinga

The Netherlands seized Chinese-owned Nexperia under a Cold War–era law to secure chip supply. The government froze Wingtech’s control for a year amid U.S. sanctions and China’s rare earth curbs, sending Wingtech shares down 10%.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03The Dutch government seized control of Chinese-owned chipmaker Nexperia

00:06under a Cold War-era law to safeguard access to critical technology, according to Bloomberg.

00:11The unprecedented September 30th court order invoked a nearly 70-year-old law

00:16allowing the Netherlands to block or reverse corporate decisions

00:20to protect Europe's semiconductor supply.

00:23The move follows Trump's sanctions on Chinese subsidiaries

00:26and Beijing's new rare-earth export controls.

00:28The Dutch government can overrule Nexperia's decisions

00:32and has ordered its Chinese parent, Wingtec, to freeze any major changes for up to a year.

00:38Wingtec denounced the action as discriminatory

00:40and said it has begun legal and diplomatic efforts to challenge the takeover.

00:45Wingtec's shares fell 10% in Shanghai on Monday.

00:48For all things money, visit Benzinga.com.

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