Chip Relaxation Netherlands Cedes Control Over Nexperia

Source: dpa 1 min Reading Time

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The Dutch Minister of Economic Affairs, Vincent Karremans, announced that control over the chip manufacturer Nexperia will be returned to China.

The Dutch delegation, which is meant to ease the dispute over the halted deliveries of Nexperia chips, is in Beijing. The talks are going well, and now the Netherlands even plans to return control over the chip company, which they have held since September...(Image: Nexperia)
The Dutch delegation, which is meant to ease the dispute over the halted deliveries of Nexperia chips, is in Beijing. The talks are going well, and now the Netherlands even plans to return control over the chip company, which they have held since September...
(Image: Nexperia)

At the end of September, the Dutch government seized control of the Chinese-managed chip manufacturer Nexperia in Nijmegen through a legal maneuver. The minister had intervened in the company's management at the time due to significant concerns about the Chinese owner. He justified this by claiming that the Chinese parent company Wingtech intended to transfer both technology and production to China, which would also have affected the Nexperia plant in Hamburg. In response, China halted the delivery of critical components to Europe, potentially leading to a severe chip shortage.

The Old Nexperia Leadership Will Not Return for the Time Being

However, in the ongoing conflict, the Netherlands is now apparently accommodating China again and relinquishing control of the company. China had previously demanded this step from the Netherlands before fully resuming the delivery of semiconductors vital to the automotive industry. The minister described China's measures to ensure Europe's chip supply as positive. In light of recent developments, he considered it the right time to take a constructive step as well. In recent days, constructive talks have also been held with Chinese authorities. The dialogue with Beijing will continue. A high-level delegation from the ministry is currently in Beijing. However, the minister’s decision does not mean, as emphasized, that the previous Chinese management will be reinstated. The interim leadership will remain in office. Additionally, the decision is independent of ongoing legal proceedings.

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