Intervention Suspended Following Diplomatic Discussions
The Dutch government has suspended its intervention in Nexperia, the Chinese-owned chipmaker based in the Netherlands, after what it described as “constructive talks” with Beijing. The move marks a pause in a months-long dispute triggered by concerns over semiconductor supply and alleged governance issues at the company.
Beijing Welcomes Decision Amid Easing Trade Tensions
China welcomed the reversal, calling it a “first step in the right direction” toward resolving the broader dispute. Tensions had escalated after The Hague acted under the Goods Availability Act in September, prompting Beijing to block exports of Nexperia chips—components widely used in cars and electronic devices.
Concerns Over Semiconductor Supply Sparked Initial Action
The Dutch government originally intervened due to “serious governance shortcomings” and fears that Europe’s access to basic chips could be disrupted. Shortages of Nexperia’s components, which are critical to the automotive sector, threatened global supply chains. Economic affairs minister Vincent Karremans said it was appropriate to suspend action while further discussions with China continue.
Mismanagement Allegations and Leadership Turmoil
Authorities cited concerns stemming from actions attributed to Nexperia’s now-removed CEO, Zhang Xuezheng, including the alleged improper transfer of assets, technology, and funds to a foreign entity. A Dutch court ordered Zhang’s removal in October for alleged mismanagement. The government’s initial decision aimed to prevent scenarios where chips might become unavailable during emergencies.
Background: Global Scrutiny of Wingtech and Nexperia
Wingtech, Nexperia’s parent company, was added to the US government’s entity list last year, restricting access to American-made goods without special approval. In the UK, Nexperia was previously ordered to divest its Newport chip plant over national security concerns, though it still owns a facility in Stockport.
Beijing Says Reversal Is Not Enough
China’s response acknowledged the suspension but argued that the “erroneous ruling” stripping Wingtech of control over Nexperia remains a major obstacle. Wingtech said it would continue to fight the decision and “strongly” rejected allegations against its chief executive, saying no evidence has been provided.
Wingtech Calls for Full Withdrawal of Dutch Support for Court Case
A Wingtech spokesperson urged the Dutch government to formally withdraw its support for the legal proceedings, arguing they undermine Nexperia’s stability and Europe’s semiconductor security—ironically the same rationale previously used by The Hague to justify intervention.
Featured image credits: Heute.at
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