China Acquires Dutch Semiconductor Firm

Source: Nexperia.

Nexperia, a Chinese-owned semiconductor giant, revealed its successful acquisition approval of Nowi, a Dutch semiconductor startup, following an investigation by the Dutch government on national security concerns.

This development gains significance within the context of the Dutch government's recent enactment of the Vifo Act, scrutinizing sensitive tech acquisitions, including photonics, quantum tech, and semiconductors. Despite US-led export sanctions, the approval signals the Netherlands' potential openness to business with China.

Dutch Economic Affairs Minister Micky Adriaansens informed parliament that there were no legal barriers to Nexperia's acquisition of Nowi, as reported by Bloomberg on November 27.

Nowi, established in 2016 in Delft, specializes in energy-harnessing power management chips, enabling devices to operate without traditional batteries. Nexperia's acquisition announcement in November 2022 triggered the Dutch government's investigation under the Vifo Act, with a potential cancellation threat if national security was at risk.

Responding to the government's decision, Nexperia clarified that Nowi's products don't fall into military or dual-use item categories under the Vifo Act. The company expressed relief after a period of uncertainty, highlighting their commitment to advancing within the Dutch chip ecosystem.

Nexperia's Netherlands Director, Charles Smit, stressed the importance of a well-defined policy enhancing the investment environment in the country, emphasizing transparent communication between the government and businesses.

Simon van der Jagt, Nowi's co-founder and former CEO, emphasized the advantage of accessing Nexperia's infrastructure, foreseeing faster product launches and a more significant market impact.

Nexperia, based in the Netherlands and owned by partially state-owned Chinese firm Wingtech Technology, boasts a global workforce exceeding 15,000, serving various industries like automotive, industrial, mobile, and consumer tech with its components.

Author: Jessie Wu
Editor: Ditte van Dalen