Chinese association slams Dutch intervention in semiconductor firm Nexperia

BEIJING, Oct. 14 (Xinhua) -- The China Semiconductor Industry Association on Tuesday denounced the Dutch government's intervention in semiconductor manufacturer Nexperia, an overseas subsidiary of Chinese company Wingtech.

In a statement, the association expressed firm support for its member companies in defending their legitimate rights and interests, as well as for a fair, just and non-discriminatory business environment and stable global supply chains.

"We oppose the practice of abusing the concept of 'national security' and imposing selective and discriminatory restrictions on overseas branches of Chinese enterprises," the association said.

Discriminatory measures that target specific companies will undermine the open, inclusive and collaborative global semiconductor ecosystem, it said, voicing firm opposition to such measures.

In another statement issued Monday, Wingtech, Nexperia's controlling shareholder, said the Dutch government's move constituted an overreach driven by geopolitical bias rather than a factual risk assessment.

"The act severely violates the market economy, fair competition and international trade rules always advocated by the European Union," the company said. "We strongly protest the discriminatory treatment targeting Chinese-invested enterprises."

The statements came after a recent order imposed on Nexperia by the Ministry of Economic Affairs of the Netherlands under the "Availability of Goods Act," as well as legal actions initiated by certain members of the company's management.

Wingtech, founded in 2006, acquired a controlling stake in Nexperia in the late 2010s.

Following this acquisition, Wingtech led Nexperia in achieving a comprehensive leap in operation. Nexperia's revenue peaked at 2.36 billion euros (about 2.7 billion U.S. dollars) in 2022 -- with its gross margin substantially improving from 25 percent in 2020 to 42.4 percent in 2022. By October 2024, Nexperia had repaid all prior debt, achieving "zero-debt" operation.

The Wingtech statement condemned the internal legal actions as malicious extensions of external pressure.

As Nexperia's long-term strategic shareholder, Wingtech will not succumb to external political pressure and has used various means to demand that the Dutch government revoke its wrongful order, stop systemic discrimination against Chinese firms, and uphold an open and cooperative global semiconductor chain, calling for a return to rationality and commercial sense, it added.

Responding to the case, Chinese foreign ministry spokesperson Lin Jian said Monday that China always opposes overstretching the concept of national security and making discriminatory moves that target companies from certain countries.

"The relevant country should uphold market principles and refrain from politicizing economic and trade issues," Lin said at a news briefing.