In a decisive move underscoring Europe’s tightening stance on strategic technology assets, the Dutch government has announced it will take control of a semiconductor equipment manufacturer previously linked to Chinese investors, Reuters reported.
According to officials in The Hague, the nationalization aims to “safeguard critical infrastructure and technological sovereignty” amid rising tensions between Western nations and China over the control of advanced chip technologies. The unnamed Chinese shareholders, holding a substantial minority stake in the firm, were reportedly compelled to divest following a national security review initiated earlier this year.
The company in question specializes in advanced lithography components critical for semiconductor manufacturing, a sector where the Netherlands plays an outsized role through ASML Holding NV. Dutch intelligence agencies have repeatedly warned that Chinese-linked entities could use minority stakes or partnerships to gain access to cutting-edge technologies vital for the next generation of chips.
Industry insiders view the takeover as part of a broader European trend toward strategic decoupling. Similar measures in Germany and France have already forced Chinese investors to exit key firms in robotics, energy, and telecommunications. The Dutch Ministry of Economic Affairs stated that the move “reflects our commitment to balance open trade with the imperative of national security.”
China’s Foreign Ministry, reacting sharply, accused the Netherlands of politicizing commercial relations and undermining the spirit of globalization. “This action runs counter to market principles and will damage investor confidence in Europe,” a spokesperson said in Beijing.
Analysts suggest the episode will strain Sino-Dutch relations and could prompt Beijing to retaliate against Dutch firms operating in China. Nevertheless, The Hague appears determined to align with the European Union and the United States in tightening export and investment controls targeting the semiconductor sector.
As the semiconductor supply chain becomes increasingly entangled in geopolitics, Europe’s smaller nations are now taking assertive steps once seen only in Washington. The Dutch government’s intervention marks not just a pushback against Chinese influence but also a declaration that control over chip-making capabilities is no longer purely an economic matter — it is a matter of state security.
