Netherlands uses Cold War law to take control of Nexperia

The Netherlands’ decision in late September to take temporary control of Dutch-based chipmaker Nexperia has prompted China to restrict exports of products from the company’s factories in Guangdong, touching off production cuts at Nexperia’s China plant and straining global auto supply chains. The standoff, involving the company’s Chinese parent Wingtech, has led Nexperia’s Chinese subsidiary to reject some directives from its European headquarters and reduced output at its Dongguan site, industry sources and company employees said.

Dutch authorities invoked a Cold War–era law to intervene, citing concerns that governance failures and the potential transfer of sensitive technology out of Europe could jeopardize critical production. Officials in The Hague told colleagues they feared the company’s former CEO had been moving designs, machine settings and other know-how from European factories to China. The action followed heightened scrutiny of Wingtech by several governments and restrictions on the parent company in recent years.

Beijing’s response blocked exports of finished semiconductor products made in China by Nexperia and some of its subcontractors. Workers at the Dongguan...