Beijing welcomes shift but tensions remain
China on Wednesday praised the Netherlands for stepping back from its direct control of chipmaker Nexperia, calling the move a “first step in the right direction” and linking it to hopes of easing global semiconductor shortages. The comment followed new talks between both governments, even as China’s commerce ministry argued that Dutch actions still fall short of fully ending the intervention.
The Dutch government took temporary control of Nexperia on September 30, citing concerns that the company’s former CEO could move European operations to China. Beijing responded days later by restricting exports of Nexperia’s finished products, a measure it has since partially relaxed.
European manufacturers watch supply risks
Dutch Economy Minister Vincent Karremans described the latest step as a gesture of goodwill and said dialogue would continue. He added that the government is encouraged by China’s recent measures to keep chip supplies flowing to Europe and global markets. EU trade chief Maros Sefcovic also said the development could help stabilize strained supply chains.
Nexperia is a key supplier of basic chips used in automobiles, and previous shortages have hit production at major carmakers. Companies such as BMW, Bosch and Aumovio welcomed the progress but warned it is too early to assess the broader impact. Mercedes Benz and Volkswagen declined to comment. Germany’s auto industry association VDA stressed that disruptions are far from resolved and further production risks cannot be ruled out.
Dispute disrupts wafer shipments
Nexperia produces most of its wafers in Hamburg and ships them to Dongguan, China for packaging. After the Dutch intervention, the company’s Chinese division declared itself independent of European management. On October 26, the European arm halted wafer shipments to China, citing non payment, intensifying the standoff.
For now, Chinese operations are selling down existing chip inventories, providing temporary relief to customers. Nexperia said it welcomed the recent diplomatic thaw but noted that restoring the full supply chain requires deeper cooperation from its China based entities. The company said Chinese facilities have enough wafer stockpiles to last several months.
Legal battles add new complications
The dispute escalated further after a Dutch court ordered the removal of former Nexperia CEO and Wingtech founder Zhang Xuezheng, citing alleged mismanagement. China’s commerce ministry condemned the ruling as erroneous and warned it remains a major obstacle to resolving the issue.
Wingtech, which oversees Nexperia’s Chinese operations, rejected the accusations and urged the Dutch government to withdraw support for the case brought by European managers. The Amsterdam Enterprise Court said the next step will be hearings on a formal mismanagement investigation, though no date has been set.
