Tuesday, 02 January 2024 12:17 GMT

Netherlands Could Restore Control of Nexperia as China Resumes Chip Flow


(MENAFN) The Dutch government could restore control of Chinese-owned semiconductor manufacturer Nexperia following Beijing's resumption of crucial chip deliveries, Bloomberg reported Friday, according to informed sources.

The Netherlands seized the Dutch-based chipmaker last month, citing threats to the EU's economic and technological sovereignty. The Hague deployed an unprecedented emergency statute to commandeer the manufacturer, which operates under China's Wingtech Technology. Wingtech reportedly denounced the takeover as "an act of excessive interference driven by geopolitical bias."

Beijing retaliated by halting Nexperia's Chinese exports, which comprise roughly half the firm's global production. The disruption sent shockwaves through Europe's automotive industry, triggering output reductions at multiple manufacturing facilities.

Dutch officials reportedly announced Thursday their expectation that Nexperia's Chinese division will restart semiconductor shipments within days, characterizing recent Beijing negotiations as "constructive."

Philipp von Hirschheydt, chief executive of Aumovio SE – supplying components to Volkswagen, Stellantis, and BMW – told Bloomberg that China's Commerce Ministry effectively terminated the comprehensive Nexperia export prohibition Friday. He confirmed his enterprise had secured export authorization and already dispatched Nexperia-manufactured semiconductors and parts to customers.

Additional manufacturers, including Honda and Bosch, similarly confirmed shipments had restarted, enabling disrupted assembly lines to incrementally resume operations.

Sources with knowledge of developments verified that Chinese regulators had notified automotive companies that Nexperia components could flow freely to address immediate supply deficits.

Semiconductor manufacturing remains an exceptionally sensitive domain given chips' indispensable function in global technology infrastructure and defense systems, serving both commercial and military applications.

The Dutch intervention materialized during intensifying worldwide trade hostilities. Throughout the past year, China and the EU have sparred over the bloc's allegations that Beijing is flooding markets with certain strategic products through industrial overcapacity. China has countered by accusing the EU of protectionist measures.

Last month, Beijing tightened export restrictions on rare earth materials and magnets, a maneuver potentially delivering additional damage to the EU's beleaguered automotive sector.

According to a Politico investigation citing court filings, Dutch authorities assumed control of Nexperia under pressure from the US, which remains entangled in its own trade confrontation with China.

MENAFN10112025000045017169ID1110318701



MENAFN

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Search