The Dutch government will start an investigation into the takeover of a local chipmaker by a Chinese-owned firm as the Netherlands steps up controls of the industry amid a chip spat with the Asian nation.

Authorities will use a new legislation to review semiconductor maker Nexperia’s acquisition of Netherlands-based Nowi, according to Economic Affairs Minister Micky Adriaansens. The move comes as the country will for the first time have the power to stop foreign takeovers of Dutch companies on national security grounds, with the new law taking effect on Thursday.