Recently, the Dutch government invoked the "Material Supply Act" to forcibly seize control of Nexperia, a wholly-owned subsidiary of China's Wingtech Technology. The move was justified on the grounds of "serious governance deficiencies" within Nexperia Semiconductor. Under this action, the Dutch authorities have frozen the company's assets, intellectual property rights, and imposed other regulatory measures for a duration of one year. Additionally, they have suspended Zhang Xuezheng, the de facto controller of Wingtech Technology, from his position at Nexperia Semiconductor.
Wingtech Technology has vehemently protested against this decision, a stance that has been echoed by the China Semiconductor Industry Association. In response, China's Ministry of Commerce has implemented export controls on Nexperia Semiconductor. Despite issuing a subsequent statement, the Dutch government has refrained from providing detailed explanations regarding the specific nature of the "governance deficiencies" cited as the reason for their intervention.