Wingtech stock plunges after Dutch government intervenes in chip unit

Published 13/10/2025, 06:50
© Reuters.

Investing.com -- Shares of Wingtech Technology Co Ltd (SS:600745) tumbled 10% on Monday after the Dutch government took the unusual step of intervening in the operations of its Netherlands-based semiconductor subsidiary Nexperia, citing national security concerns.

The Chinese tech company’s stock fell sharply following Sunday’s announcement from the Dutch economic affairs ministry, which described the action as a "highly exceptional" measure.

The ministry pointed to "serious governance shortcomings and actions within Nexperia" that threatened the continuity of crucial technological capabilities in the Netherlands and broader European region.

Nexperia, which produces semiconductor components for the European automotive industry and consumer electronics, became the target of government scrutiny due to concerns about preserving strategic technological knowledge on Dutch and European soil.

"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," the ministry stated in its announcement.

The intervention represents a significant regulatory challenge for Wingtech, which has been expanding its semiconductor operations globally.

The Dutch government’s move reflects growing concerns among Western nations about protecting domestic semiconductor capabilities and technology transfer to Chinese companies amid ongoing geopolitical tensions.

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