India should take note,’ says Deepak Shenoy after Dutch government assumes control of China-linked company
Deepak Shenoy Urges India to Focus on Self-Reliance After Dutch Government Seizes Control of Chinese-Owned Chipmaker
Capitalmind CEO Deepak Shenoy has urged India to strengthen its capacity for technological self-reliance following the Dutch government’s takeover of Chinese-owned semiconductor firm Nexperia. He warned that India could face growing barriers to acquiring advanced technologies in the future.
“This is precisely the kind of development India should observe closely — and realize the urgency of building for ourselves,” Shenoy said. “The Dutch authorities took over a company because they disliked the nationality of its shareholders, fearing China would gain access to better semiconductor technology. Imagine if India decided to nationalize Hindustan Unilever because we didn’t like its British or Dutch ownership, claiming they were gathering critical data on making better soap. In the long run, countries like these won’t even allow India to access advanced technology. We must learn to build our own — from jet engines to sewing machines to chips.”
Shenoy’s remarks followed the Dutch government’s decision to assume control of Nexperia, citing concerns that its Chinese parent company, Wingtech, could gain access to sensitive technological expertise. Authorities framed the move as a national and economic security measure to protect critical knowledge within the Netherlands and the European Union.
The intervention gives the Dutch state oversight authority and allows it to reverse or block management decisions deemed harmful to national interests, though Nexperia’s production is expected to continue. The Dutch Ministry of Economic Affairs described the action as “exceptional,” citing “acute signals of serious administrative shortcomings” and actions that “threaten the continuity and safeguarding of crucial technological knowledge and capabilities on Dutch and European soil.”
Wingtech confirmed in a stock exchange filing that its control over Nexperia has been temporarily restricted following the Dutch government’s directive and related court orders. Chairman Zhang Xuezheng was suspended from Nexperia’s boards by an Amsterdam court, and an independent, non-Chinese director with a deciding vote has been appointed in his place.
Entrepreneur Arnaud Bertrand criticized the move, calling it an “extraordinarily dumb decision” that could damage Europe’s investment climate. “The Dutch government is effectively expropriating a Chinese company,” Bertrand said, adding that the decision was likely coordinated with Washington. “They suspended the Chinese CEO, replaced him with a non-Chinese director with decisive voting rights, and placed the shares under a third-party trustee — that’s outright seizure,” he argued.
He warned that the action could provoke Chinese retaliation and undermine Europe’s own semiconductor ambitions, demonstrating what he described as Europe’s lack of strategic autonomy.
In December 2024, Wingtech was placed on the U.S. Entity List over national security concerns. While Nexperia said it would comply with U.S. regulations, the company maintained that its operations were largely independent of its Chinese parent.
