Wingtech Shares Dive After Dutch Government Intervenes in Chip Unit

By Sherry Qin

Shares of Chinese tech company Wingtech Technology plunged Monday after the Dutch government issued an order intervening in the firm's Netherlands-based semiconductor arm, citing national-security concerns.

In a statement on Sunday, the Dutch economic affairs ministry said it took the "highly exceptional" measure in response to "signals of serious governance shortcomings and actions within Nexperia," which produces chips used in the European automotive industry and consumer electronics.

"These signals posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities. Losing these capabilities could pose a risk to Dutch and European economic security," it said.

According to Wingtech, the order restricts Nexperia, its subsidiaries, branches, offices and 30 other entities around the world from making adjustments to assets, intellectual-property rights, businesses and personnel, the Chinese company said in an exchange filing over the weekend.

Wingtech's shares fell 10% on Monday in Shanghai, dropping by the maximum daily limit.

A Dutch court has also suspended Nexperia's chief executive, Zhang Xuezheng, from his duties and put the company under temporary external management, the filing showed. Daily operations are still running, but the ministerial order and the court ruling mean Nexperia has reduced flexibility in resource allocation, and faces temporary changes affecting its decision-making, it said.

Founded in 2006, Wingtech started off as a manufacturing contractor for consumer-electronics giants. It then pivoted to the semiconductor industry after acquiring Nexperia in 2019.

Last year, Wingtech was placed on a U.S. Commerce Department entity list over national security and foreign policy concerns involving advanced computing and chip-manufacturing items. In 2022, the U.K. ordered Nexperia to sell at least 86% of Newport Wafer Fab, a manufacturing facility in Wales, over risks to national security.

In the stock-exchange filing, Wingtech said it is consulting with international law firms on legal remedies, and engaging with relevant government departments to seek support.

The European Union Directorate-General for Trade couldn't immediately be reached for comment.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

October 13, 2025 01:37 ET (05:37 GMT)