The biggest action in the chip war! This country captures Chinese Chip Firm, sparks global concern

The Hague (The Uttam Hindu): In a major development amid the global technology and trade war, the Netherlands government has taken control of Nexperia, a major Dutch chipmaker owned by China's Wingtech Technology. This tough decision was taken under the Goods Availability Act to ensure the country's supply of essential chips and technological sovereignty.
The Ministry of Economic Affairs said in a statement that there were "recent and immediate indications of serious administrative flaws" at Nexperia, which could pose a threat to the technological security of the Netherlands and Europe, particularly for the automobile sector, which is heavily dependent on chips.
Nexperia, headquartered in Nijmegen, Netherlands, is one of the few companies in the world that makes chips needed for automotive and other industries. The company is also working on "wide-gap" semiconductor technology used in electric vehicles and AI data centers. According to the government, this intervention is an "extremely extraordinary" step, taken to prevent the chip supply chain from collapsing during an emergency.
This move comes at a time when trade tensions between the US and China are at their peak. Although the Dutch ministry has denied that it is motivated by US pressure, it is seen as part of a larger strategy in which the US and the Netherlands are working together to impose export controls on the chip industry. It is worth noting that Nexperia's parent company, Wingtech Technology, has already been placed on the US Entity List through December 2024.
Wingtech Technology has called the Dutch government's decision "excessive interference motivated by geopolitical bias." The company says it has complied with all local laws since acquiring Nexperia in 2019.
Following this announcement, Wingtech shares fell sharply by 10% on the Shanghai Stock Exchange. According to a government order, Nexperia has been placed under temporary external management for one year, during which time no changes can be made to the company's assets or personnel. Wingtech Chairman Zhang Xuezheng has also been suspended from all his roles at Nexperia.