The Dutch government has partly taken control of Nijmegen-based chipmaker Nexperia over concerns that key intellectual property could be transferred to China.

The economic affairs ministry said it acted following “recent and acute signals of serious management failures and actions” at the company, which has been owned since 2019 by the Chinese electronics group Wingtech.

Caretaker minister Vincent Karremans said the “highly unusual” step was necessary to safeguard national security and ensure the availability of critical technology in Europe.

Under the Goods Availability Act, the government can block or reverse internal company decisions if they are deemed harmful to Dutch or European interests. Nexperia, which makes semiconductors used in cars, phones and solar panels, must now seek explicit permission from the ministry for major management or structural changes for the next year.

The Amsterdam company court has also suspended Wingtech chief executive Zhang Xuezheng from his role at Nexperia, according to filings by the parent company.

The move came after senior European managers at Nexperia, including its German management and chief legal officer Ruben Lichtenberg, raised concerns and requested intervention. Shares in Wingtech fell by the maximum daily limit of 10% when trading opened on the Shanghai stock exchange on Monday.

Wingtech, which has been on a US trade blacklist since late last year, condemned what it called a “discriminatory and politically motivated” takeover attempt.

In a statement circulated via Chinese media, the company accused Nexperia’s European executives of colluding with The Hague and said it would use ‘all diplomatic and legal means’ to overturn the government’s decision.

The Dutch ministry stressed that the measure applies solely to Nexperia and “not to other companies, the sector, or any country”. It said the law is only used “when there is no other option”.

Washington tightened its semiconductor export restrictions at the end of September, extending licence requirements to subsidiaries of previously sanctioned firms. The following day, Nexperia’s European directors filed their case with the company court in Amsterdam.