European semiconductor leader publicly accuses China of spying efforts

Chances are, the microchips powering your phone, laptop, or even your coffee machine have a direct connection to the Netherlands. Remarkably, around 85% of all microchips produced worldwide rely on Dutch semiconductor equipment during their design, development, or manufacturing stages. As one of only three countries—alongside the United States and Japan—with a complete semiconductor value chain, the Netherlands plays a pivotal role in the global tech ecosystem.

Now, that strategic importance is drawing unwanted attention. Dutch Defence Minister Ruben Brekelmans has warned that the Netherlands is facing an escalating wave of Chinese espionage targeting multiple high-tech sectors, particularly semiconductors, as reported by Reuters.

Speaking at the Shangri-La Dialogue security conference in Singapore this weekend, Brekelmans stated, "The semiconductor industry, where we are technologically advanced, is obviously of interest to China because of the intellectual property it holds."

These concerns are not new. In its 2023 annual report, the Dutch military intelligence agency publicly accused Chinese state-backed hackers of targeting the country’s semiconductor, aerospace, and maritime industries to bolster China's military capabilities. It marked the first time Dutch intelligence explicitly linked cyber espionage to Beijing, noting a breach into a Dutch military network as one of the key incidents.

According to Dutch sources, the Netherlands holds a commanding 33% share of the global semiconductor manufacturing equipment market, thanks to companies like European giant ASML, NXP, and Besi. The Brainport Eindhoven region—one of the country's major semiconductor hubs—hosts over 300 companies, generating more than €32 billion annually. This dense concentration of firms, all operating across the full semiconductor value chain, benefits from the Netherlands' compact geography and highly developed transport infrastructure.

Beijing has consistently denied all allegations of cyber espionage, claiming opposition to cyberattacks in any form. Still, Brekelmans emphasized that the Dutch government is taking growing security threats seriously, stating that China is “using their economic position for geopolitical purposes and also to pressure us.”

In response, the Netherlands has implemented measures to safeguard its vital industries and national interests. However, Brekelmans argued that more must be done—not just nationally, but at the European level—to reduce reliance on China for critical raw materials and strategic technologies. “We need to take bigger steps to reduce those dependencies,” he said, signaling a shift toward deeper economic and security resilience across Europe.

By Nazrin Sadigova