The Netherlands is ready to give way in dispute with China over the takeover of chip maker Nexperia, and asks it to resume exports
Nexperia headquarters in Nijmegen, the Netherlands, PHOTO: John Thys / AFP / Profimedia Images
The Dutch government is prepared to suspend the order by which it took control of chip maker Nexperia if China resumes exports of key chips, Bloomberg reported on Friday, cited by Reuters.
According to Bloomberg sources familiar with the discussions, the Netherlands is willing to suspend the ministerial decree as early as next week if deliveries are resumed and verified in the coming days.
Vincent Karremans, the Dutch economy minister, said on Thursday that he was confident that the chips produced by Nexperia would reach customers in Europe and the rest of the world in the coming days.
“Given the constructive nature of our discussions with the Chinese authorities, the Netherlands is confident that the shipment of chips from China to Europe and the rest of the world will reach Nexperia customers in the coming days,” Karremans said in a press release.
The Dutch decision that angered China
The Dutch government announced on October 13 that it has decided to take control for a year of Nexperia, a Dutch-based subsidiary of Chinese company Wingtech Technology.
The intervention gave the Dutch state the right to block or alter key decisions, including relocating parts of the company or firing directors, for up to a year.
Nexperia specializes in the large-scale production of chips used in automotive, consumer electronics and other sectors, critical to maintaining Europe's technology supply chains.
The Dutch government, which described the measure as “totally exceptional”, said it was taken after the economy ministry noticed “recent and acute signs of serious deficiencies in governance and actions” within Nexperia. The Hague executive said the move is meant to ensure that the supply of Nexperia chips remains sufficient in Europe.
Beijing has banned the export of Nexperia chips
In response, the Beijing government retaliated by banning the export of chips made by Nexperia to China, where the company has one of its largest factories with a total area of more than 80,000 square meters.
China's response has, in part, caused exactly the situation the Dutch government feared.
For example, Volkswagen directly mentioned the Nexperia chip shortage in its decision in October to temporarily suspend production of several popular models, such as the Golf, Tiguan, Touran and Tayron, made at its large Wolfsburg plant.
The crisis has also affected other European carmakers and exacerbated problems with supply chains that have not been fully resolved since the COVID-19 pandemic and have faced further turbulence due to tariffs imposed by the United States this year.
The Association of European Automobile Manufacturers recently said carmakers have been relying on dwindling reserves to keep factories running, and some are preparing for production shutdowns.
