Dutch Government Takes Control of Chinese-Owned Chipmaker Nexperia
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Related: https://www.scmp.com/news/china/diplomacy/article/3328726/chinas-wingtech-says-dutch-court-freezes-control-nexperia-amid-national-security-dispute
The Dutch government's takeover of Chinese-owned chipmaker Nexperia sparks debate on national security, protectionism, and the role of government in strategic industries.
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That governmental decision was surely not taken lightly, it's a significant move with high risk of increasing geopolitical tension...
The Chinese propaganda machine is already making lots of waves about how NL is no longer a democracy and how this dings NL reputation abroad.
The Dutch have put restrictions on Wingtech to not make certain changes (sale or move of assets, intellectual property, company activities, employees) for a year. That should give you enough to chew on I think (and it is public knowledge). Specifically the IP and assets bits are in focus here, more so because the parent company is on a watchlist. Note that they not only kicked out the CEO - which in itself is an earth shaking move for a company this big - they also took control over the shares.
The ministry of economic affairs intervened out of a fear that crucial technological skills and capacities will leave the Netherlands and Europe. The ministry stated in a press release[1] that there was a threat of a "knowledge leak" (w/e that means exactly) and a possible threat to the European economy.
After this intervention the Dutch government can now stop or reverse decisions within the company. That's only allowed if those decisions are harmful to the interests of the company, or for the future of the company as a Dutch or European business, or to the retaining of this crucial value chain for europe.
The company can appeal this decision in court.
For context, the law that allows this all to happen was passed in 1952 and has never before been used. As much as I think our government is currently ran by a bunch of nincompoops, I am inclined to believe that something quite significant was about to happen for this law to get invoked. What exactly that was can for now only be speculated about.
I can recommend you run google translate (or equivalent) on the press release. It's as close as you can get to the source of this news for now. I can only imagine the government is going to be having plenty of debates on the topic coming up, seeing as this is a very rare use of a very heavy-handed tool.
[0] https://nos.nl/artikel/2586270-kabinet-grijpt-hard-in-bij-ch...
[1] https://www.rijksoverheid.nl/actueel/nieuws/2025/10/12/wet-b...
Unfortunately we seem to be living in interesting times.
So i wouldn't be surprised if they will announce first initial set of EUV test runs this year or early next year as a cherry on top of their "Made in China 2025" cake.
2. It's quite possible you are right about Chinese EUV capabilities - I don't have a clue myself as I don't work for NSA or CIA. On the other hand it's one more very big challenge in a field of big challenges and despite what the CCP says Chinese resources are very far from infinite and the clock is ticking demographically.
3. A set of EUV test runs would not impress me to be honest - a full blown production line of EUV generated chips would. The issue doesn't seem to be in doing EUV, the issue is to build systems that can sustain quality at volume.
Not really since the USA basically controls ASML. That's not even counting the USA's control over most of Europe especially the Netherlands.
China played a remarkably smart game. We let it happen.
People have been telling us for twenty years that this would happen and nobody listened until it was almost too late.
As soon as China tries to compete with the rich monopolies, the "free market" goes out of the window and becomes "free to do as we tell you".
When China cannot compete with incumbents those protections also go up and when they can now people like you appeal to free trade (while ignoring existing protections). You are being overly charitable to one side here. Which is it? Free trade or Protectionism?
Industrial and scientific espionage is another one.
Hacking companies is one more.
But whataboutism is basically SOP for the CCP shills.
And let's not even get started on Taiwan...
You're assuming too much and, along with others here, acting like you've been hurt. "Free trade" is the mantra of Western economists and politicians since the time of Adam Smith, and it's been a ruse since then too. Read him.
> When China cannot compete with incumbents those protections also go up.
They do, but not in the erratic manner, levels or timing we're observing here. China is a party of the WTO and they haven't broken any of its agreements, nor have they used any of its emergency clauses.
> You are being overly charitable to one side here. Which is it? Free trade or Protectionism?
It's not either/or. I can tell you a third option that is worse than both of these - it's jumping from one to the other and back in an erratic manner as we are doing it now.
I could tell you something that's better than all of these too but I won't do it. I've been talking about it for many years, primarily as an alternative to free trade and I'm amazed that at this time, nobody seems to be aware of it. Like, what's the point of pointing out obvious truths over and over again with the same (lack of) result.
You should read Keynes as the primary opposing side to US during Bretton Woods, with strong support from most bankers at the time. The WTO has no answer to structural imbalances nor was ever intended to resolve such a matter.
The status quo you support is not grounded in economic literature than it is a incoherent mess that was created through political circumstances. Under a truly multilateral system of the ICU, China would have been severely disciplined years ago for its distortionary surplus actions.
Don't blame China for this, they provided what they were asked to provide, blame those who "failed to discipline them years ago". Go to the beginning of this thread where I pointed out who tried to stop the trend.
> The status quo you support is not grounded in economic literature than it is a incoherent mess that was created through political circumstances.
The status quo is what reality is today. Punishing China has nothing to do with advancing the US economy, much less when it boils down to erratic tariffs motivated by speculation and crony business relations.
> The status quo you support is not grounded in economic literature than it is a incoherent mess that was created through political circumstances.
This is so rich that I have to correct it again, the hard way:
The economic literature is an incoherent mess that was created through political circumstances.
Keynes is no exception.
The fact that you are referencing "they" means you don't actually know how the ICU and the Bancor works do you? Or any of Keynes' larger arguments regarding global macroeconomic stability.
Hence big tech cozying up to this administration, and all the attempts to ban AI regulation.
China won already, US is just trying to stop the bleeding
So there will noise but this won't stop China' rise and it won't stop Europe's decline, either.
Interesting parallel here with China recently invoking - for the first time - their own legislation from the 50's to ban rare earth exports for military uses.
Plenty of US companies ready and willing. They've finally gotten an administration that is of like mind on screw the environment and dig dig dig.
“Ready and willing” is quite the turn of phrase.
My understanding is that a large part of the issue is processing capacity/ability - not mining of the ore. In fact, a significant amount of ore mined in the US is sent to China for processing. I don't think it's a simple case of the US standing up some processing plants in 1-2 years. If that were the case, wouldn't you think it would've happened by now? Is US leadership that bad that they failed to address this risk? Or - more likely - is it because solving the issue will take a lot more than some quick investment?
This is a huge issue for the US MIC. Plans (e.g. with regard to Iran) are going back to the drawing board for sure.
They’ll fall in line quickly enough.
I've heard this one before.
How are we reminding China that the US is a big dog? By imposing tariffs? By demonstrating our ability to do work domestically that they believe us unwilling or incapable of doing?
What does this even mean, to be a big dog in the modern world? It seems more like a large ship listing to one side … if it collapses there will be a lot of small ships damaged in the wake.
Time to short the US dollar and load up on Bitcoin.
Beware hardware DRM locking up the repairs. That would make everything more fragile.
No, they were more advanced in certain ways, but the original contention is correct that they were less advanced in others. Notably they were unable to build domes. They were also less productive, so less advanced in an overall sense.
The fall of the Roman Empire is a pop history trope at this point.
More than that, technology continued to evolve. The Romans had nothing like Medieval plate armor, for example. There are many examples of better tech from the supposed "Dark Ages".
https://en.wikipedia.org/wiki/History_of_medieval_Arabic_and...
> with no technology to speak of for the 1000 years after Roman Empire
While it's true that some technology declined in the West, it wasn't as dramatic as you've suggested. Popular media also often exaggerates it.
https://www.britannica.com/technology/history-of-technology/...
Adding USSR into the discussion greatly increases complexity of the discussion. From analysis I've read, central planning is supposedly fine when country doesn't have much industry, because to start things up, it can provide essential investments and starts organizing production. But when country is somewhat developed, efficiency starts to matter and top-down approach to decision making of central planning vs bottom-up decision making mechanisms of markets produce different results. Politics and other things are important factors too, but I think that would be too much for this discussion.
The decline began around 180CE to 235CE, depending on where you draw the line. That isn't 'many centuries' in my book.
"In 1984, a German historian compiled 210 explanations historians had suggested for Rome’s fall, from lead poisoning and barbarian invasions to Christianity, moral decline and gout.
After studying dynamic civilizations such as Athens, Rome, Abbasid Baghdad, Song China, Renaissance Italy and the Dutch Republic, I can attest that there is no single explanation. Each golden age had its own character and its own downfall."
[1]: https://en.wikipedia.org/wiki/Volcanic_winter_of_536 and https://www.science.org/content/article/why-536-was-worst-ye...
[2]: https://en.wikipedia.org/wiki/Plague_of_Justinian
The main reason that it's mostly China producing them may simply be due to the fact that the volumes are so small that building your own industry is not really worth it.
Who’s got the money?
According to this map, China has vastly more. But is there something special about China/Myanmar geologically? I guess being downstream of the Himalayas is something.
https://worldpopulationreview.com/country-rankings/rare-eart...
E: brushed up a little bit from a few month ago and AU just found some clay, because of course they did.
"According to this map" is essentially meaningless w/out a map specific definition of "reserve".
The terms "reserve", "resource" and their variations are misused outside of technical literature that cites whether they are defined via a JORC or other classification.
The bias toward China in that map likely comes from two notes:
* "proven" reserves - as in tested and estimated to some higher standard, as opposed to "we know there's a lot 'over here' but we haven't spent $X million on a drill assay program yet.
* "controlled or owned" by China - Chinese companies are majority shareholders in joint ventures that source raw materials across the globe (they source concentrates from Australia, from Peru, from elsewhere, in addition to their home soil deposits). This means a number of maps might show all REE deposits owned by Chinese companies as on the books for China (as that is where much of the processing of concentrates occurs).
For interest:
North Stanmore in Western Australia has emerged as one of the world's most extraordinary heavy rare earth element (HREE) deposits, particularly for dysprosium and terbium in North Stanmore. (Sept, 2025)
https://discoveryalert.com.au/news/north-stanmore-heavy-rare...
https://www.australianmining.com.au/victory-unearths-world-c...
There's also an element of their production generating pollution and us preferring to think of ourselves as cleaner than that. We only use the rare earths.
Compare how desalinization is very cheap, but California prefers constant screaming about drought.
If the west want's the other 7 billion to care, you're going to have to find some principles and live by them. Without exception.
I assume this is an entirely independent Chinese company without some Dutch sponsor or something. That conforms to local regulations. But now The Dutch government says "we have this new power over you" and that is that. With the consequence presumably being export control on dutch tech, banning from their market, etc? Or were there any more hooks planted that make it easier to force compliance? For example -- and I assume this is not the case in the Netherlands -- in China there is a 51% ownership of the foreign company by a local company (which is more or less state controlled).
It's worth noting that Nexperia is a spin-off of NXP (Dutch company) which itself is a spin-off of Philips' (Dutch company) semiconductor division.
It's also worth noting that Nexperia's Chinese owners (Wingtech) are at least partially state controlled.
It's not, it's a Dutch company, formed according to Dutch law, with headquarters in the Netherlands, that was bought by another Chinese company a few years ago.
Dutch law sets rules on how any company, but especially public companies (so-called naamloze vennootschappen) must be governed. Even if you own all the shares, by law you don't have unlimited and unchecked power in the company, you have to abide by governance rules.
Seemingly simultaneously with the government order, a suit was brought to the court enforcing these laws (the Ondernemingskamer) alledging that the CEO and owner were not abiding by them. The court documents are a bit weird to me as a non-lawyer, with Nexperia named as both plaintiff and defendant, so I'm not sure who brought it, but it might've been the government, who are named as a party.
The court agreed that the suit could have merit, and as an interim measure while the legal proceedings play out, has suspended the CEO and named a temporary director. It also suspended the authority of the owners over their shares (except for one), and assigned a trustee to manage them temporarily. The court did not actually rule on the contents of the suit yet, it only issued interim conservatory measures. We'll likely hear more about how the suit plays out over the next few months.
An interesting matter of contention in the suit is that the CEO/owner want the CLO to be suspended, while the other side asks the court to prohibit firing of the CLO. I presume there has been a conflict in the board, either leading to or caused by the government order.
The court documents are public by the way (in Dutch, obviously): https://uitspraken.rechtspraak.nl/resultaat?zoekterm=nexperi...
OR vs CEO also explains the duplicate entries as they are both representatives of the company.
And of course, the jobs disappeared from Germany.
https://www.marketscreener.com/quote/stock/KUKA-AG-436260/ne...
Note: Looking for more information about the distribution of jobs atm ( countries). But it's hard to find. Any resources?
But you're right. They still have jobs there, I didn't knew that.
Note: This is about the law Germany created afterwards: https://www.akingump.com/en/insights/alerts/germany-tightens...
It’s a continuation of recent trends and closing markets.
Nobody in their sane mind would allow a company like ASML or the likes to be purchased by competitors.
But the irony is that when a non-European entity were to do something like this, e.g. nationalize their oil or mining etc. industry or a firm, the whole hell would brake loose.
So, my thinking is that there could be less patents, because they’re less likely to share the technology and patents might let others copy stuff.
Which iPhone?
https://www.gsmarena.com/apple_iphone-pictures-1827.php
https://www.gsmarena.com/samsung_i9000_galaxy_s-pictures-311...
Samsung was the original manufacturing partner for Apple, which allowed them to amass incredible amount of knowhow to create their own, and before that they were not even in the phone market much, yet alone launch their own phone.
Samsung was just better at marketing and other business aspects.
> and before that [Apple] were not even in the phone market much, yet alone launch their own phone.
This applies to Apple, too. Samsung learned how to make them. As did HTC, Sony, Huawei, Xiaomi, Oppo, OnePlus, etc, etc. Turns out, making smartphones is a very competitive business, but a lot of companies were good at it, at least for periods of time.
But I don't think the other players want that order to live forever, so we will see. I just hope we don't get WW3, and that's good enough for me.
As far as I understand, Samsung, TSMC, and SMIC are all closely guarded by their respective governments. And China doesn't (didn't?) allow foreign companies to operate in China without a local partner at all. So I don't see the irony - everyone practices protectionism, some are just more subtle about it than others. Some China-specific examples:
tmnvix points out the perfectly analogous Chinese restriction of rare earth exports: https://news.ycombinator.com/item?id=45572420
China imposes more trade and investment barriers, discriminatory taxes, and information security restrictions than any other country by a vast margin. - https://ecipe.org/wp-content/uploads/2017/06/DTE_China_TWP_R...
As with most countries, China has adopted some policies aimed at protecting or promoting its domestic industries, including targeted quotas, subsidies to certain key industries and rejection of patents in critical industries. - https://www.rfa.org/english/news/afcl/fact-check-china-prote...
https://en.wikipedia.org/wiki/Made_in_China_2025 - government plan with securing first local, and the global key markets, for indigenous firms, the acquisition of foreign technology companies, and independence from foreign suppliers, as explicit goals.
A few more than half century old examples don't change what we can all see is the case in the present day.
They only backed up when the US told the Brits and France they would tank their economies still on US life support.
And, pray, why did the Machado win the hypocrisy prize on Friday? Why are American ships outside the waters of Venezuela?
The British and the French were concerned about the Suez, but Israel was not dependent on the Suez and went to war over their navigation being blockaded by Egypt in the Gulf of Aqaba and the Straits of Tiran, which was a violation by Egypt of maritime law. Aqaba is in the Sinai peninsula which is also bounded by the Suez.
https://en.wikipedia.org/wiki/Israeli_passage_through_the_Su...
The waters have been internal waters literally for three millennia (or more) until foreigners came in and built a canal connecting what is actually a very narrow gulf to the Mediterranean.
Foreigners come in, unilaterally build a canal and now the locals lose national sovereignty over their waters?
Also, why does Egypt have to agree to the freedom of navigation of a state it did not (at the time) recognize?
Furthermore, why must Egypt agree to the laws of freedom navigation it did not sign?
The answer, of course, is that there is no such thing as international law, or a "rules based order". There's only power makes might.
> They only backed up when the US told the Brits and France they would tank their economies still on US life support.
But they did back off. The US was willing to stand up for Egyptian sovereignty even against their own allies. That isn't an example of non-western countries being unable to enact protectionist policies, it's an example of the opposite.
My example is about European piracy under the pretense of that foreign ownership supersedes sovereignty.
That is to say, hypocrisy.
The US' role was, of course, hypocritical. I mention it only to illustrate that even the US found the european actions blatantly imperialist.
> My example is about European piracy under the pretense of that foreign ownership supersedes sovereignty.
The British and French did something wrong 70 years ago and the world called them out for it, therefore it's hypocritical for the Dutch to call out a similar wrong thing being done against them now? Nonsense.
I suppose installing el-Sisi is also an example of protecting Egyptian sovereignty:
https://www.cato.org/commentary/ten-years-after-coup-us-stil...
[1] https://www.latintimes.com/nicolas-maduro-losing-it-venezuel...
For some reason, over the past few decades the powerful countries from the West employed rhetoric to suggest that their actions are guided by principles and morals. That was most likely a reaction to a huge wave of anti-colonial revolutions and national liberation struggles that tore the Western empires apart. However, USA and Israel have taken off the mask over the past 2 years, and that weasly rhetoric is now over.
[1] https://en.wikipedia.org/wiki/Siege_of_Melos#Melian_Dialogue
But talking seriously, the OP didn't say that other countries never do it. Just that the powers have innumerable examples of coups to knock out governments that do this. A lot of them were democratic and popular governments.
Why do you feel the need go single out "the west"? I mean, where do you think the container ships crossing the Suez go to and come from? Do you think that the likes of China would be totally ok with their main trade routes being severed and instead having to go all the way around Africa?
You're framing things as if there's still a British empire syphoning the economies of their colonies all the way from Great Britain, with no one else involved or committed to any trade whatsoever.
Why do you think this is relevant in discussions over who would respond to shutting down the Suez canal? I mean, do you have a map?
Hell they're explicitly exploring using the northeast passage to bypass the Suez.
It would be foolish to sell off a great value like ASML or others that adds incredible value. But one should also not get mad when other countries do it, because they see their industries as valuable things as well.
Our markets are just getting more closed and different groups are being formed. Let’s hope other high value companies gather their IP rights as well.
This reads like a straw man argument. No one gets mad when other countries do it. At most, you see complains of protectionism being unilaterally imposed while benefitting from your competitor's openness. See for example the criticism directed at the likes of China for preventing foreign companies from even investing in their domestic market without a government-minder-as-a-partner scheme, while China throws a tantrum when there is even a hint of suggestion that Chinese companies should be subjected to the same type of treatment when operating abroad. See the case of TikTok, for example.
If tit-for-tat is our policy, then we should at least be upfront about it and enshrine it in law, instead of using some ancient law to slap China with: that's arbitrariness.
(0)https://en.wikipedia.org/wiki/Appellate_Body
But of course it benefits everyone at the expense of deficit countries, so why change or truly address the literature. Appealing to international law today as such is just appealing to entrenched interests.
But the matter of fact is that in a true free trade regime, imbalances should rebalance back to zero. The fact that the deficit is only growing is more than enough evidence that China is obviously the violators here. And everybody knows this.
Under a multilateral Bancor System which Chinese economists themselves advocated back in 2009, China would have been immediately subjected to massive FX overvaluation to degrade their conpetiveness.
I had to look that up and this stood out
> U.S. Secretary of the Treasury Timothy Geithner expressed interest in the idea of greater use of SDRs as a reserve. However, he was criticized severely for this in the United Statess, and the dollar lost 5 cents against the euro in exchange markets following his statements. He and President Barack Obama shortly afterwards backtracked Geithner's comments.
https://en.wikipedia.org/wiki/Bancor#Proposed_revival
I'm beginning to see a pattern of which country is blocking any progress here.
Anyway, the Dutch should then make a law that demands WTO status or smth. As this is NOT nicely applying rule of law.
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