The Dutch government has assumed control of Chinese-owned semiconductor manufacturer Nexperia, citing “serious governance shortcomings” that could threaten Dutch and European economic security. Authorities invoked a seldom-used emergency law to take the unprecedented step.

In an official statement, Dutch officials explained that the intervention “aims to prevent a situation in which the goods produced by Nexperia — finished and semi-finished products — would become unavailable in an emergency.”

Nexperia, which operates in the Netherlands but is owned by China’s Wingtech, produces semiconductors for automotive and consumer electronics sectors. The move reflects growing concerns in Europe over foreign ownership of critical technology assets amid geopolitical tensions.