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Are you thinking about STMicroelectronics perhaps? They are incorporated in the Netherlands.

NXP has a long history in the Netherlands. It started as a division within Philips (Dutch company) and it has done a lot of production work in the Netherlands.

NXP originated from Philips afaik, so it is a by product of a Dutch company. Why would headquarters move elsewhere?

Here is some more information about one of the schemes where Dutch law helps avoiding taxes: https://en.wikipedia.org/wiki/Dutch_Sandwich

Small countries like NL and Ireland don't really have a choice. Without giving tax incentives multinationals would just choose the bigger markets (China, U.S, India, Germany maybe). Is it "fair" that the U.S and China dominate everything between themselves?

Maybe true, a lot of NXP projects actually happen in Austria for example