BEIJING: China's leading state-backed semiconductor association said Tuesday it "firmly opposes" Dutch authorities intervening over a European subsidiary of Chinese chip firm Wingtech.
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.
Blocked or reversed
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.
The move was because of "recent and acute signals of serious governance shortcomings and actions" within Chinese-owned Nexperia, the statement said.
The China Semiconductor Industry Association (CSIA) on Tuesday said it supported its member Wingtech in safeguarding its rights and interests, slamming the Dutch authorities' latest moves.
"We oppose the practice of abusing the concept of 'national security' and imposing selective and discriminatory restrictions on overseas branches of Chinese enterprises," the CSIA said in a statement.
‘Discriminatory measures’
"Discriminatory measures targeting specific enterprises will undermine the open, inclusive, and collaborative global semiconductor ecosystem, and we firmly oppose such measures," it added.
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.
A European Commission spokesman said Monday that the Dutch government had intervened in Nexperia to "ensure security of supply in a strategically sensitive sector".
"The Dutch government is addressing a potential risk to both Dutch and wider European economic security," he said.
‘Relevant countries’
When asked about the case, China's foreign ministry urged "relevant countries" to "earnestly adhere to market principles and refrain from politicizing economic and trade issues".
"China consistently opposes generalizing the concept of national security and discriminatory practices against firms from specific countries," spokesman Lin Jian told reporters at a new briefing Monday.
Semiconductors have become a key battleground between China and the West.
Washington's ‘entity lists’
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.
