The Dutch government has suspended its intervention at Chinese-owned chipmaker Nexperia after constructive talks with Beijing, a move aimed at easing diplomatic tensions and stabilizing global semiconductor supply chains. This development follows months of dispute that threatened to worsen chip shortages critical for the automotive and electronics industries.
In September, the Dutch government invoked the Goods Availability Act, a Cold War-era law, to take control of Nexperia over concerns about “serious governance shortcomings” and the potential unavailability of chips in an emergency. The intervention was prompted by actions attributed to the then-CEO, including the improper transfer of product assets, funds, technology, and knowledge to a foreign entity, which undermined Dutch and European strategic autonomy.
China responded by blocking exports of Nexperia’s finished products, leading to fears of escalated shortages. Global automotive groups, including Stellantis, Volkswagen, Mercedes-Benz, and BMW, had raised alarms about the impact on their production lines, as Nexperia is a major supplier of basic computer chips used in cars and consumer electronics.
On Wednesday, Dutch Economy Minister Vincent Karremans announced the suspension, stating that it was the “right moment to take a constructive step” after “constructive talks” with Chinese authorities. He noted that Beijing now appears to be permitting companies from European and other countries to export Nexperia chips, which is “an important step” towards resolving the issue.
China’s Commerce Ministry welcomed the move as a “first step in the right direction towards a proper resolution” but added that more is needed to address the “root cause of the global semiconductor supply chain turmoil and chaos.” It also highlighted that the erroneous court ruling to strip Wingtech of control over Nexperia remains an obstacle.
European Union trade chief Maros Sefcovic expressed support for the suspension, saying it will help stabilize strategic supply chains. “Continued constructive engagement with partners remains essential to securing reliable global flows,” he stated, indicating ongoing diplomatic efforts.
Nexperia, headquartered in Nijmegen, Netherlands, but owned by Chinese firm Wingtech, specializes in high-volume production of chips. The company has faced scrutiny elsewhere, including in the UK where it was forced to sell a silicon chip plant in Newport over national security concerns, and in the US where Wingtech was placed on an entity list restricting exports.
The resolution of this dispute could ease broader tensions between the EU and China, which have been mounting over trade and geopolitical issues. Further talks are expected in the coming weeks to address remaining concerns and ensure the stability of semiconductor supplies vital for global economies.
