Dutch Government to Review Nexperia's Acquisition of Delft-Based Startup over Critical Infrastructure Concerns
The Netherlands is set to launch a review of a Chinese-owned firm's acquisition of a Delft-based microchips startup, citing concerns over critical infrastructure and sensitive technology.
The Dutch government has approved a new investment-screening law that takes effect today, giving it the power to scrutinize investments or full takeovers in critical sectors.
The firm in question is Nexperia, which acquired Nowi in November 2022.
However, a spokesperson for Nexperia stated that the Dutch law applied to the takeover of Nowi was not applicable to the company.
The acquisition of Nowi by Nexperia has been in the news since January when reports emerged that the takeover could be reviewed by the Dutch government.
The takeover review could add to the ongoing dispute between the Netherlands and China over chips.
In March, the Dutch government decided to ban the sale of some chips equipment supplier ASML machines to China, citing security concerns.
The decision was met with a diplomatic protest by China, but Foreign Minister Wopke Hoekstra stated that he did not expect the final decision to significantly impact Dutch-Chinese relations.
Other European countries have blocked the acquisition of chips companies or individual factories by Chinese-owned companies before.
In November last year, the British government ordered Nexperia to sell at least 86% of the Newport Wafer Fab factory it acquired in 2021, citing security concerns over Wingtech’s ties to the Chinese state.
Germany also vetoed the acquisition of a chips plant in Dortmund by a Chinese-owned company in November.
The initial review of the Nexperia-Nowi acquisition will take eight weeks, but the period can be extended twice and could last close to a year.
The new investment-screening law gives the Dutch government the power to scrutinize investments or full takeovers in critical sectors, including infrastructure and sensitive technologies.
The law is intended to protect the national security of the Netherlands and ensure that foreign investments do not pose a threat to critical infrastructure or the country's technology.