The intricate web of international trade and tech rivalry finds another chapter as the Dutch government decides to release its hold on Nexperia, a Chinese-owned chipmaker. The move aims to alleviate tensions between China and the Netherlands, ensuring the continuity of semiconductor supplies critical to global automotive manufacturing.
Vincent Karremans, the Dutch Economics Affairs Minister, announced the suspension of a previous directive to take over Nexperia, citing “constructive meetings” with Chinese authorities. This decision marks a temporary pause in actions initiated under a Cold War-era law, originally invoked due to national security concerns and governance issues linked to Nexperia, a subsidiary of China’s Wingtech Technology.
Automakers across North America, Japan, and South Korea, who heavily rely on Nexperia chips, recently raised alarms over dwindling chip supplies. Honda, for instance, had to halt operations at its Mexico plant, impacting the production of the HR-V crossover for North American markets.
Minister Karremans expressed optimism about recent developments, stating, “In light of recent developments, The Netherlands has considered it the right moment to take a constructive step by suspending my order under the Goods Availability Act.” He further acknowledged the positive measures taken by Chinese authorities to maintain chip supplies globally.
Welcoming the Dutch decision, China’s Commerce Ministry emphasized that this is merely a “first step” in resolving ongoing issues. The ministry pointed out that a Dutch court ruling, which restricts Wingtech’s control over Nexperia, remains a significant hurdle. It encouraged continued collaboration between the two nations to address the matter.
Europe’s position in the U.S.-China trade and tech conflict comes into focus with this development. The Dutch government’s initial action followed the U.S. decision to place Wingtech on its “entity list,” expanding export controls to include Nexperia in September.
The corporate struggle within Nexperia also saw the removal of its Chinese CEO, Zhang Xuezheng, following suggestions from American officials to avoid trade restrictions. Subsequently, China briefly halted the export of Nexperia chips from its Chinese plant, a ban lifted recently amidst a broader U.S.-China trade agreement.
Despite the suspension of the Dutch order, unresolved issues persist between Nexperia’s Chinese and Dutch units, particularly concerning the supply of wafers from European fabrication plants to China’s assembly center.
Wingtech expressed the need for the Dutch government to formally withdraw its support for court proceedings that led to Zhang’s suspension. They argue these proceedings pose a threat to Nexperia’s operations and, by extension, to Europe’s economic security.
While Nexperia welcomed the Dutch announcement as progress, it emphasized the necessity for ongoing cooperation with its Chinese counterpart to fully restore the supply chain.
Nexperia, once part of the renowned Dutch electronics company Philips, was acquired by Wingtech in 2018. The company produces essential chips used in a variety of automotive applications, from operating lights to controlling airbag systems.
