China Chipmaker WingTech Shares Plunge After Dutch Government Takes Control of Nexperia

Beijing  — Shares of Chinese chipmaker WingTech Technology fell 10% on Tuesday, hitting the daily limit for a second straight session after the Dutch government took control of its subsidiary, Nexperia, citing national security and supply chain concerns.

The Netherlands’ Minister of Economic Affairs announced that the takeover, made under the “Goods Availability Act,” was aimed at ensuring continued access to chips produced by Nexperia in case of emergencies. The move underscores growing European caution over Chinese ownership of critical technology assets.

Nexperia, based in the Netherlands, is a key supplier of semiconductors used in automotive, industrial, and consumer electronics, sectors vital to Europe’s manufacturing base.

Following the decision, WingTech’s Shanghai-listed shares opened sharply lower, reflecting investor concerns about the impact on its international operations and profitability.

Across Asia, markets showed mixed performance. South Korea’s KOSPI index rose 1.01% to a record high, supported by strong gains in mining and construction stocks. LG Energy Solution jumped over 7% after forecasting a 34% increase in quarterly profit, while Samsung Electronics climbed 2.47% after projecting higher earnings.

Japan’s Nikkei 225 declined 1.34%, with SoftBank sliding more than 5% after reports that its chip unit Arm was working with OpenAI and Broadcom on new AI accelerator projects.

Meanwhile, Singapore’s economy expanded 2.9% in the third quarter, faster than analysts’ expectations, while China’s CSI 300 and Hong Kong’s Hang Seng Tech Index also posted modest gains.

U.S. markets recovered overnight as President Donald Trump appeared to ease tensions with China, saying, “Don’t worry about China, it will all be fine!” following recent trade restrictions.