Officials in the Netherlands invoked the Goods Availability Act to take control of Dutch-based chip maker Nexperia in late September, citing national security concerns, a statement published by the Dutch government said Sunday.

This means that while the company -- based in the Dutch city of Nijmegen -- can continue regular production, its decisions can be blocked or reversed by the Dutch government.

This move was due to "recent and acute signals of serious governance shortcomings and actions" within Chinese-owned Nexperia, the statement said.

"These signals posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities," the statement said.

Wingtech on Monday said it was proactively engaging with "relevant government departments to secure support" following the decision.

The company is discussing legal remedies and measures with international law firms, Wingtech said in a filing published on the Shanghai stock exchange.

It vowed to "take all necessary actions to maximise the protection of the legitimate rights and interests of the company and all shareholders".

Once part of Dutch electronics giant Philips and its semiconductor spin-off NXP, Nexperia was eventually bought by China's Wingtech Technology in 2018.

It makes chips for everyday goods such as cars and refrigerators.

Semiconductors have become a key battleground between China and the West.

The United States and the Netherlands are among the powers that have imposed restrictions on exporting advanced chip-making equipment to China, fearing Beijing could use it to make cutting-edge weapons.

Wingtech was put on one of Washington's "entity lists" in December, meaning it had been determined by the government to be acting contrary to the national security and foreign policy interests of the United States.

isk/je/dan

Koninklijke Philips

NXP SEMICONDUCTORS