Tuesday 21 October 2025Chips, China and Control
The semiconductor race is now a matter of national security. When the Dutch government took control of Nexperia this September under Cold War-era emergency laws, it sent a powerful message: Europe is no longer willing to risk losing control of its technological foundations.
Nexperia, owned by China’s Wingtech Technology, was placed under temporary government oversight after serious governance and security concerns came to light. The CEO was suspended, Wingtech’s voting rights were transferred to an independent administrator, and all strategic decisions must now be approved by the Dutch government for one year.
China’s response was swift and severe. The Ministry of Commerce imposed export bans on Nexperia’s Chinese operations, blocking shipments from the Guangdong plant, which handles around 70% of its output. Legal challenges followed, but the disruption highlights how geopolitical tensions can quickly turn into supply chain vulnerabilities.
This is not an isolated incident. Europe has entered a phase of strategic protectionism.
- In the UK, Nexperia was ordered to sell its majority stake in Newport Wafer Fab on security grounds.
- Germany blocked the sale of Elmos Semiconductor to a Chinese-owned firm.
- Italy used its “Golden Power” law to halt a similar acquisition attempt.
Together, these cases point to an emerging and increasingly assertive pattern of Chinese involvement in European semiconductor assets — and the strong countermeasures now being deployed to limit it.
For the electronics industry, the lesson is clear: resilience must become a strategic priority. Companies can no longer rely on seamless global supply chains without assessing the political and geographic risks built into them. Reviewing inventory, qualifying secondary suppliers, and securing flexible stock arrangements are now as vital as product design or cost control.
Europe’s intervention in Nexperia marks a turning point. Semiconductor security has become a matter of sovereignty, not just business continuity.
Mike Calladine, Managing Director, Wavemar Electronics: – “At Wavemar Electronics, we’re closely monitoring these developments across the global semiconductor sector to ensure our customers remain one step ahead. Our focus is on keeping every client protected, prepared, and powered for continuity — backed by an ongoing evaluation of market and geopolitical risks to minimise supply chain disruption and maintain confidence in component availability.”
If you have any questions regarding this or any other supply chain issues that effect your business continuity get in touch. Wavemar. +44 (0) 23 8045 6641
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