China Backs Wingtech Amid Dutch National Security Dispute Over Nexperia

China has declared its support for local electronics parts supplier Wingtech in its dispute with Dutch authorities over control of its European semiconductor unit, Nexperia. This comes after the Dutch Ministry of Economic Affairs issued an order placing Nexperia under temporary external management, citing national security grounds.

Credit: WINGTECH

The state-backed China Semiconductor Industry Association (CSIA) stated on Tuesday that it "firmly supports" Wingtech, a CSIA member, in defending its rights. The association opposes what it calls the "abuse of the concept of ‘national security’ to impose selective and discriminatory restrictions" on Chinese companies' overseas branches.

Foreign Ministry spokesman Lin Jian said on Monday that China opposes "overstretching the concept of national security" and is "firmly resolved in defending its own legitimate and lawful rights and interests." Earlier, state media Global Times published an opinion piece labelling the Dutch move "extremely egregious" and accusing it of "commercial plunder."

Credit: WINGTECH

Wingtech, founded in 2006 by industry veteran Zhang Xuezheng, has vowed to reclaim control over Nexperia, which it acquired in 2019. Wingtech Chief Financial Officer Zhang Yanru stated during an online webinar on Monday night that the company is collaborating with international lawyers to find remedies and has sought guidance from the Chinese government.

Acting Wingtech President Shen Xinjia believes the Dutch action is linked to a new rule from the US Bureau of Industry and Security, which oversees Washington’s export control policies. The rule, effective Sept. 29, imposed new restrictions on entities at least 50% owned by enterprises on US government blacklists.

Wingtech was added to the US Entity List in Dec. 2024, requiring American companies to obtain a special licence to export or transfer US-origin goods, software, or technology to the Chinese firm. Shen noted that while not explicitly mentioned, "this incident is [part of] a series of measures arising from the geopolitical environment."

Shen reassured investors that Nexperia's on-the-ground operations would not be significantly impacted, as the company had anticipated such a situation since early this year. Wingtech has promoted the adoption of domestic suppliers to reduce supply chain risks, though Shen acknowledged effects on "the decision-making chain." Nexperia’s revenue grew 11% year on year in the first half of 2025, reaching 7.8 billion yuan (USD 1.1 billion). This figure accounted for 31% of Wingtech’s total revenue for the period.

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• China supports Wingtech in its national security dispute with Dutch authorities over its European unit, Nexperia.

• The Dutch Ministry of Economic Affairs placed Nexperia under temporary external management, citing national security concerns.

• Wingtech believes the Dutch move is connected to new US export control rules, as it was added to the US Entity List in Dec. 2024.

Source: SCMP