Netherlands Imposes Strict Controls on Chipmaker Over National Security Fears
In a significant move underscoring the growing link between technology and geopolitics, the Dutch government has imposed strict measures on a major semiconductor company due to national security concerns. The decision targets the chipmaker Nexperia, highlighting a firm stance on protecting sensitive technology from potentially falling into the wrong hands.
This development is a clear signal that governments worldwide are increasingly scrutinizing the ownership and operations of companies within their critical technology sectors. The core issue revolves around Nexperia’s acquisition of Nowi, a Dutch startup specializing in innovative energy-harvesting chips. While the deal itself has been allowed to proceed, it comes with stringent government-mandated conditions designed to safeguard Dutch technological assets.
The Heart of the Matter: Technology Transfer Risks
The primary concern for Dutch authorities is the risk of sensitive technology transfer to China. Nexperia, while headquartered in the Netherlands, is a subsidiary of the Chinese-owned company Wingtech Technology. This ownership structure has raised red flags about the potential for intellectual property and advanced semiconductor knowledge to be moved to entities with ties to the Chinese state.
The technology developed by Nowi is particularly sensitive because it is considered “dual-use.” These energy-harvesting chips, which can power devices indefinitely by drawing energy from their environment (like light or radio waves), have significant commercial applications in the Internet of Things (IoT). However, they also have potential military applications, such as powering remote sensors or surveillance equipment without the need for battery replacements.
The government’s restrictions are designed to create a firewall, preventing this valuable dual-use technology from being exploited for purposes that could undermine national or international security.
A Growing Global Trend of “Techno-Nationalism”
The Netherlands’ action against Nexperia is not an isolated event. It is part of a broader, coordinated effort among Western nations to protect their technological sovereignty. Key points of this global trend include:
- Increased Scrutiny of Foreign Investment: Countries like the United States, the United Kingdom, and Germany have all strengthened their laws to review and potentially block foreign takeovers of domestic tech companies.
- Focus on Supply Chain Security: The global chip shortage and geopolitical tensions have exposed the vulnerabilities of an interconnected semiconductor supply chain. Nations are now prioritizing the onshoring or “friend-shoring” of critical manufacturing capabilities.
- Protecting Vital Industries: Semiconductors are now viewed as essential national infrastructure, much like power grids or communication networks. Governments are therefore taking a more hands-on approach to regulating the industry.
This move by the Netherlands was enabled by new investment screening legislation, often referred to as the Vifo act, which gives the government the power to review and impose conditions on acquisitions that could pose a risk to national security.
Security Guidance for the Tech Sector
As the lines between commerce and national security continue to blur, companies operating in sensitive technology fields must adapt to this new reality. Here are several actionable steps businesses should consider:
- Conduct Rigorous Supply Chain Audits: Understand the ownership structure of every partner in your supply chain. Be aware of any connections to state-owned enterprises or countries of concern.
- Understand Foreign Investment Regulations: If you are seeking foreign investment or considering an acquisition, be fully aware of the national security screening laws in your country. Proactive engagement with government bodies is crucial.
- Implement Robust IP Protection Protocols: Establish strict internal controls to prevent unauthorized access to or transfer of sensitive intellectual property, especially for technologies that may be classified as dual-use.
- Classify Your Technology: Assess whether your company’s products or innovations could be considered dual-use. This classification will likely subject you to a higher level of regulatory scrutiny.
Ultimately, the Dutch government’s decision regarding Nexperia marks a pivotal moment. It confirms that in the high-stakes world of semiconductor technology, economic interests are now inextricably linked with national security imperatives. Businesses must navigate this complex landscape with diligence and foresight to thrive.
Source: https://go.theregister.com/feed/www.theregister.com/2025/10/13/nexperia_special_measures/
