Dutch Government Suspends Control of Nexperia as Internal Power Struggle Intensifies — Latest Update 19 November 2025

Dutch Control of Nexperia Suspended as Internal Power Struggle Deepens

On 19 November 2025, the Dutch government announced that it has temporarily suspended its state intervention in the Chinese-owned chipmaker Nexperia, marking a surprising shift in a dispute that has shaken Europe’s semiconductor industry. The government had taken control of the company weeks earlier, citing national security concerns, but escalating internal tensions within Nexperia have pushed the situation in a new direction.

The dispute initially began when Dutch authorities feared that sensitive chip technology and intellectual property were at risk of being transferred outside Europe. Using the Good Availability Act, the government intervened directly in Nexperia’s management. This move was presented as essential for protecting strategic semiconductor capabilities at a time when global chip competition is already fierce.

However, recent diplomatic discussions between China and the Netherlands have eased some immediate tensions. Officials stated on 19 November that the suspension of state control is meant to be a “temporary goodwill gesture,” not a withdrawal of oversight. The government made it clear that it remains ready to step back in if any new threat or irregularity emerges.

Meanwhile, Nexperia itself is confronting a serious internal crisis. The company’s European leadership accused its Chinese subsidiary of violating contractual obligations, delaying payments, and refusing to follow central corporate directives. These disagreements have triggered operational instability and strained the company’s supply commitments at a critical time.

Tensions intensified further when China restricted the export of specific chips produced in Nexperia’s facilities. This disruption is affecting automotive manufacturers across Europe, many of whom rely heavily on Nexperia components for modern vehicle electronics. The uncertainty has added pressure on both the company and governments monitoring the situation.

Adding to the complexity, several legal cases remain active. Investigations into mismanagement and transparency issues involving former company leaders are still underway. Dutch authorities have not ruled out future intervention and emphasize that the protection of national semiconductor interests remains their top priority.

The temporary suspension of control does not mean the crisis is over. Officials have stressed that they will continue monitoring Nexperia closely, especially given the conflicting agendas within its Chinese and European teams. The ongoing disagreement threatens to weaken one of Europe’s most important chip producers at a time when the region is already working to strengthen its semiconductor independence.

Globally, the situation highlights the growing technological rivalry between China and Western nations. As governments worldwide seek greater control over semiconductor supply chains, the Nexperia case has become a symbol of how corporate management, geopolitical interests, and national security concerns can collide.

For now, Nexperia stands at a crossroads. Whether the company can resolve its internal power struggle and regain stable operations remains uncertain. The coming weeks will be critical in determining whether diplomatic talks succeed—or whether further government action becomes inevitable.