‘India should watch closely’: Deepak Shenoy’s warning after Dutch govt takes control of Chinese-owned firm

India should build for itself more than ever, said Capitalmind CEO Deepek Shenoy after the Dutch government took control of Chinese-owned chipmaker, Nexperia. Shenoy said it is very likely India will not be allowed to acquire better technology in the long term.

“This is the exact kind of action that India should watch closely – and understand that we need to build for ourselves more than ever. The Dutch authorities took over a company because they didn't like the nationality of the shareholders, as China would now get better semiconductor manufacturing tech. That's like India taking over HUL because we don't like Brit/Dutch shareholders, saying that they are acquiring critical data on how to build better soap. In the long term, they will not even allow India to acquire better technology. We have to learn to build our own stuff, from jet engines to sewing machines to chips,” he said.

Shenoy was referring to the Dutch government assuming control of chipmaker Nexperia, citing concerns about the potential transfer of crucial technology to its Chinese parent, Wingtech. Authorities described the intervention as a direct response to security concerns about safeguarding technological expertise on Dutch and European soil. The move grants the government oversight and the ability to reverse or block management decisions considered harmful, while regular production at Nexperia is expected to continue.

The Dutch Ministry of Economic Affairs called the step "exceptional", citing "acute signals of serious administrative shortcomings and actions" at Nexperia. These signals, the statement said, "threaten the continuity and safeguarding of crucial technological knowledge and capabilities on Dutch and European soil." The loss of these capabilities could pose a risk to Dutch and European economic security.

Wingtech, Nexperia’s parent company, reported in a stock exchange filing that its control over Nexperia would be temporarily restricted due to the Dutch government’s order and court rulings. Chairman Zhang Xuezheng was suspended from Nexperia's boards by an Amsterdam court order, and an independent non-Chinese person with a "deciding vote" will be appointed in his place.

Entrepreneur Arnaud Bertrand called it an “extraordinarily dumb thing for Europe to do”. He said the Dutch government is stealing a Chinese company. Bertrand said this was probably done in coordination with Washington. “I'm not even exaggerating on the "stealing" bit: they suspended the Chinese CEO from his position, appointed a non-Chinese director on the board with decisive voting rights and expropriated the company's shares by placing them under management by a third-party trustee,” he said.

Bertrand, calling the move “dumb” again, said it could lead to retaliation from China, while killing the investment climate in Europe. He said it shows Europe with zero autonomy, and this move would undermine Europe’s own semiconductor strategy.

In December 2024, Wingtech was placed on the United States' "entity list" as a national security concern. Nexperia said it would comply with the US rules, but that would not greatly impact its operations, which it argues are kept at arm's length from Wingtech.