Tuesday, 02 January 2024 12:17 GMT

Dutch Government May Return Nexperia to Chinese Control


(MENAFN) The Dutch authorities might restore control of the Chinese-owned semiconductor company Nexperia after Beijing resumed essential chip supplies, a media outlet reported on Friday, citing sources.

Last month, the Netherlands took over the Dutch-based chipmaker, citing threats to the EU’s economic and technological security.

The Hague invoked an emergency law never used before to assume control of the manufacturer, which is owned by China’s Wingtech Technology.

Wingtech reportedly condemned the intervention as “an act of excessive interference driven by geopolitical bias.”

In retaliation, Beijing restricted Nexperia’s exports from China, which constitute approximately half of the company’s total production.

The restriction immediately affected the automotive sector, leading to production reductions at multiple European factories.

According to reports, the Dutch government stated on Thursday that it anticipates Nexperia’s Chinese division to resume chip shipments in the next few days, describing recent discussions with Beijing as “constructive.”

Philipp von Hirschheydt, CEO of Aumovio SE – a supplier for Volkswagen, Stellantis, and BMW – informed the media outlet that China’s Commerce Ministry had effectively lifted the broader Nexperia export ban on Friday.

He noted that his firm had already obtained an export license and dispatched Nexperia-made semiconductors and components to clients.

Other companies, including Honda and Bosch, also confirmed that deliveries had restarted, enabling previously disrupted production to gradually resume.

Sources familiar with the situation indicated that Chinese authorities had notified automakers that Nexperia components could now be exported without restriction, helping alleviate immediate supply shortages.

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