A possible “risk to Dutch and European economic security” prompted the Dutch government to announce on Sunday that it had made the “highly exceptional” decision to step in and take action against Chinese-owned chipmaker Nexperia.
Wingtech, the owner of the Netherlands-based company, announced Monday that it will take steps to defend its rights and will look for government assistance. Tensions between China and the European Union, which have risen in recent months due to trade and Beijing’s ties with Russia, could worsen as a result of this move.
After ministers and members of parliament voiced worries about national security, Nexperia was compelled to sell its silicon chip facility in Newport, Wales. At the moment, it owns a facility in Stockport, UK.
According to the Dutch government, “acute signals of serious governance shortcomings” within Nexperia prompted the Ministry of Economic Affairs to activate the Goods Availability Act.
The statute is set up to let the Hague to become involved in businesses in extraordinary situations. Threats to the nation’s economic stability and the ability to supply essential goods are among them. According to the Dutch government, the action is intended to avoid a scenario in which Nexperia’s chips could not be available in an emergency.
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