Chinese semiconductor company Wingtech announced on Monday that it will take legal action to protect its rights and seek government support following an intervention by Dutch authorities at its Netherlands-based subsidiary, Nexperia.

On Sunday, the Dutch government announced its decision to intervene at Nexperia, a company that manufactures computer chips for the automotive and consumer electronics industries, citing concerns about the potential transfer of critical technology to its parent company, Wingtech.

The Dutch Ministry of Economic Affairs stated that its intervention was prompted by administrative shortcomings at Nexperia, and would allow the government to reverse or block any harmful decisions. However, the company’s regular production is expected to continue.

This move by the Dutch authorities against U.S.-sanctioned Wingtech comes after the Trump administrationsignificantly expanded its sanctions last month to include subsidiaries of blacklisted companies.