Dutch Government Approves Chinese-Owned Nexperia's Acquisition of Dutch Startup Nowi

The Dutch government has cleared the way for the acquisition of Dutch power management chip company Nowi by Chinese-owned Nexperia, according to a Reuters report. The government's decision comes after a retroactive review of the 2022 purchase, which was prompted by concerns over foreign takeovers of potentially sensitive technologies.

Nowi's technology utilizes ambient sources of electricity, such as light or vibrations, to power electronic devices, potentially eliminating the need for batteries. The company's expertise in this area attracted Nexperia, a global leader in essential semiconductors, to acquire Nowi.

Initially, the acquisition went unnoticed by Dutch authorities. However, as national security concerns regarding foreign investments in sensitive technologies grew, the government established a new office to scrutinize such deals. This led to a retroactive review of the Nexperia-Nowi acquisition.

After a thorough assessment, the Dutch government concluded that the acquisition posed no legal objections. In a letter to parliament, Economic Affairs Minister Micky Adriaansens stated, "There are no legal objections to the acquisition of Nowi by Nexperia."

The government's approval paves the way for Nexperia to integrate Nowi's technology into its product portfolio, potentially enhancing its position in the power management chip market and expanding its capabilities in energy-efficient solutions.

This outcome highlights the Dutch government's balancing act between fostering economic growth through foreign investment and safeguarding national security interests in sensitive technological sectors. The establishment of a dedicated office to review foreign takeovers signals a more cautious approach to such deals, ensuring that national security concerns are carefully considered.