The Netherlands has intervened at chipmaker Nexperia over concerns about the potential transfer of sensitive technology to its Chinese parent company Wingtech, reported Reuters.

The Ministry of Economic Affairs said the move was prompted by administrative shortcomings and allows the government to reverse or block decisions deemed harmful, while regular production may continue.

Nexperia, a major global producer of basic chips such as diodes and transistors, supplies components for automotive and consumer electronics industries.

The company said Nexperia complies with all applicable laws, export controls and sanction regimes.

The ministry described the intervention as "highly exceptional��and noted it was made under emergency legislation to safeguard critical goods. The decision may be subject to legal challenge.