The Dutch government has made a rare decision to intervene in the operations of Nexperia, a Chinese-owned semiconductor manufacturer based in the Netherlands, citing potential risks to Dutch and European economic security. The move, announced on Sunday, underscores growing tensions between the European Union and China, particularly in the realm of trade and technology. Nexperia, which produces chips for automobiles and consumer electronics, has faced scrutiny in recent months, including being forced to sell its silicon chip plant in Newport, Wales, due to national security concerns raised by UK officials. The Dutch government invoked its Goods Availability Act, a legal mechanism designed to address serious governance issues and ensure the supply of critical goods. While Nexperia’s production will continue as usual, the intervention aims to safeguard crucial technological knowledge and capabilities in the Netherlands and Europe. The decision has already impacted Nexperia’s parent company, Wingtech, whose Shanghai-listed shares dropped by 10% on Monday. Wingtech, which is on the US ‘entity list,’ faces restrictions on importing American-made goods without special approval. This development highlights the escalating geopolitical tensions surrounding semiconductor supply chains and China’s global tech ambitions.