By Innovation Times Global Affairs Desk
October 13, 2025 | The Hague
In a move that underscores Europe’s growing unease over Chinese influence in critical technology sectors, the Dutch government has taken control of a semiconductor company previously owned by a China-based investor group. Officials cited national security concerns and the need to safeguard the country’s strategic chipmaking capabilities as the driving force behind the intervention.
The firm, whose name has not yet been publicly disclosed due to ongoing legal proceedings, operates advanced manufacturing facilities essential to the global semiconductor supply chain. Dutch authorities said the decision followed a comprehensive review that revealed “potential vulnerabilities” in the company’s ownership structure and data management practices.
“The Netherlands will always protect its technological sovereignty,” said Economic Affairs Minister Liesje Schreinemacher in a press briefing. “Semiconductors are the backbone of our modern economy, and we cannot afford to risk foreign control over assets critical to our national security and innovation leadership.”
The takeover comes amid heightened Western scrutiny of Chinese investment in high-tech industries, particularly those tied to artificial intelligence, defense applications, and advanced computing. The Dutch government emphasized that the move was not directed at China specifically, but rather part of a broader strategy to ensure transparency and resilience in its technology ecosystem.
Industry analysts noted that the decision reflects a wider European shift toward “de-risking” supply chains from China. The European Union has urged member states to review and, where necessary, restrict foreign ownership in sensitive sectors. The Netherlands, home to chipmaking giant ASML, plays a crucial role in global semiconductor production and export controls, making the country a key player in the West’s tech competition with Beijing.
Beijing’s embassy in The Hague expressed “deep concern” over the move, urging Dutch authorities to uphold the principles of fair trade and to avoid “politicizing normal commercial activities.” The statement warned that such measures could strain bilateral economic ties, which have already been tested by export bans on advanced lithography machines to China.
Meanwhile, Dutch tech leaders and policymakers have praised the decision as a necessary safeguard for innovation and national resilience. The government has also announced plans to establish a new oversight board to monitor foreign investments in critical infrastructure sectors, including telecommunications, energy, and semiconductors.
Experts say the case could set a precedent for how European nations handle future acquisitions in their technology industries, especially as global competition intensifies over access to next-generation chips
