China has called on the Netherlands to reverse its September takeover of Nexperia, saying Dutch measures threaten the stability of the global semiconductor supply chain. Beijing has halted exports of chips packaged in China that were bound for Nexperia, while Wingtech and court-appointed custodians negotiate control of the Dutch unit. Dutch Economic Affairs Minister Vincent Karremans defended the intervention as "necessary."
China Demands Netherlands Reverse Nexperia Seizure, Warns of Global Chip Supply Risk
FILE PHOTO: Flags fly next to a logo of Nexperia, amidst a shortage of chip supply, in Dongguan
China on Wednesday urged the Netherlands to immediately reverse what Beijing called mistaken actions over the Dutch takeover of Nexperia, warning that the dispute risks destabilising the global semiconductor production and supply chain.
Diplomatic Exchange Escalates
The Chinese commerce ministry said in a statement: "The Netherlands remains indifferent, stubbornly insisting on its own course, showing no responsible attitude towards the security of the global semiconductor supply chain and taking no substantive action whatsoever." The ministry described the Dutch position as "perplexing."
What Happened
In September, the Netherlands moved to assume control of Nexperia, the Dutch unit of Chinese electronics firm Wingtech, citing concerns that the company founder might transfer corporate secrets and manufacturing capacity to China. In response, Beijing halted exports of chips made for Nexperia that are packaged in China.
Wingtech has since opened talks with court-appointed custodians overseeing Nexperia as both sides discuss the future control of the Netherlands-based chipmaker. Dutch Economic Affairs Minister Vincent Karremans has publicly defended the government intervention, saying the decision was "necessary" even if "not enjoyable."
"China has repeatedly emphasised that the Netherlands' inappropriate administrative interference in the internal affairs of Nexperia has led to a crisis in the global semiconductor supply chain, and the Netherlands must bear full responsibility for this," the commerce ministry said.
Implications
The dispute highlights growing tensions between supply-chain security concerns voiced by European regulators and Beijing's objections to what it calls extraterritorial interference. The standoff risks disrupting shipments of components used in electronics worldwide and may prompt further diplomatic and legal wrangling as custodians, Wingtech and Dutch authorities negotiate next steps.
(Reporting by Ryan Woo; Editing by Clarence Fernandez and Saad Sayeed)
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