China demands Netherlands correct 'mistakes' after taking control of chip maker Nexperia, blames it for Europe's crisis
Nexperia headquarters in Nijmegen, the Netherlands, PHOTO: John Thys / AFP / Profimedia Images
China on Wednesday urged the Netherlands to correct what Beijing called “mistakes” in connection with chip maker Nexperia and remove obstacles to the stability of global chip production and supply chain, Reuters reported.
In September, the Dutch government took control of Nexperia, a Dutch subsidiary of Chinese company Wingtech, saying the exceptional measure aims to prevent the parent company from transferring technology and production to China.
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. Holland said the temporary takeover of the company is meant to prevent a chip crisis in Europe.
The Dutch decision came shortly after Beijing tightened restrictions on exports of rare earth elements and magnets, another measure likely to affect the European auto industry.
China retaliated harshly to the Netherlands' decision
In a filing with the Shanghai Stock Exchange, Wingtech confirmed that Nexperia is under “temporary external administration” and has been ordered to suspend any changes to the company's assets, activities or personnel for up to a year.
Beijing retaliated by blocking the export of Nexperia chips, most of which are assembled in China for delivery. Nexperia has one of its largest factories in China, 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 Netherlands relinquished control of Nexperia last month
“China once again urges the Netherlands not to act unilaterally, but to immediately correct its mistakes and remove obstacles to restoring the stability and security of the global semiconductor supply chain,” China's Ministry of Commerce said in a statement released Wednesday.
The Dutch government was not immediately available for comment Wednesday morning.
In November, the Dutch government dropped its intervention in the Nexperia case as a “goodwill gesture” as talks with China continued.
Meanwhile, Wingtech has begun talks with Nexperia's court-appointed administrators over control of the Netherlands-based chip maker. But Vincent Karremans, the Dutch minister of economic affairs, defended his decision to intervene in the Nexperia case.
“I wouldn't characterize it as pleasant, but it was necessary,” he said in a recent interview with De Telegraaf. “And I don't let my decisions be guided by whether they're pleasant or not,” he emphasized.
China's Ministry of Commerce described the Dutch position as “puzzling”.
“China has repeatedly pointed out that the Netherlands' inappropriate administrative interference in Nexperia's internal affairs has led to a crisis in the global semiconductor supply chain, and the Netherlands must take full responsibility for this,” it added.
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