Analysis: Why the Netherlands Is Intervening in a China-Owned Chip Firm

TaiwanPlus News

The Netherlands says Washington did not influence its decision to assume control of Nexperia, a Chinese-owned chipmaker, citing national security under a 1952 emergency law. Officials pointed to corporate mismanagement risks and possible technology transfers to China, and a Dutch court later suspended the company’s Chinese CEO and appointed a new director.  To learn more the never-before-used law and what the move means for European tech sovereignty, TaiwanPlus spoke with Dutch tech columnist Marc Hijink, author of “Focus: The ASML Way.”

Transcript

00:00The Netherlands says Washington had nothing to do with its decision to take control of Chinese-owned chipmaker Nexperia.

00:07The Dutch economy minister says the move was driven by national security concerns.

00:12Officials cited corporate mismanagement and possible tech transfers to China.

00:16A Dutch court later suspended Nexperia's Chinese CEO and appointed a new director.

00:21Nexperia is one of the world's largest makers of basic chips used in everyday products.

00:26Its main fabs are in Europe, but most of its chips are sent to China for final production.

00:31Both Wingtech and Beijing have condemned the Dutch move.

00:36For more on the Dutch government's intervention at Nexperia,

00:39reporter Chris Gorin spoke with Dutch tech columnist Mark Hayink, author of the book Focus the ASML Way.

00:46Mark, the Dutch government has taken the extraordinary step of intervening in Nexperia,

00:52a Chinese-owned but Netherlands-based semiconductor manufacturer.

00:56And they've used this law called the Availability of Goods Act.

01:00What exactly is that?

01:01It's actually a very old law.

01:04So it was in the draw since the 50s, the Cold War era.

01:09And it's like an emergency law that says, well, the Dutch government can control any company

01:17to prevent critical goods from being not present, not available for the Dutch people.

01:24In this case, it was the only option for the Dutch government to interfere or intervene in Nexperia

01:31because things were happening within the company that were not in the interest of Dutch society or European society.

01:42This is the first time the law has ever been used in the Netherlands.

01:45But with semiconductors being seen as vital to national security,

01:49should we expect to see more interventions or is Nexperia a one-off case?

01:54I think this is kind of exceptional and I hope it will stay exceptional.

01:59Well, just one simple reason.

02:03There are not so many semiconductor manufacturers in the Netherlands.

02:09So there's a limited amount of companies that would be a potential target for a law like this.

02:15They're usually very reluctant to interfere with companies at all.

02:21So my guess, this will be a one-off, like a very rare occasion where we've seen the Dutch government interfere in a way like this.

02:33But they do have this in their kit.

02:37So they do have this tool and they're not afraid to use it.

02:42And I think that's a step up from their naivety, well, from six or seven years back.

02:50What, to you, makes this intervention so significant to Europe's tech strategy?

02:55Because, after all, we need these semiconductors not only for our defense,

03:00not only for our economy, but also for daily lives.

03:06It's not the highly advanced semiconductors you use in your phones or in your AI systems,

03:11but also the standard products, the mainstream chips.

03:15So Europe has to make sure that they have their own availability and their own sovereignty.

03:21It's going to be a long journey, but I think in the end,

03:24they'll also need companies like Nexperia to act up and to expand.

03:30That was tech writer and author Mark Hyenck joining us from the Netherlands.

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