In September 2024, the Dutch Ministry of Economic Affairs seized control of the Dutch-based chipmaker, which in 2018 was purchased by partially state-owned Chinese electronics company – Wingtech Technology. The Dutch Ministry of Economic Affairs invoked the Goods Availability Act and explained that Nexperia’s governance and serious shortcomings “posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities”.
According to the Dutch government, its control over Nexperia means that “company decisions may be blocked or reversed by the Minister of Economic Affairs if they are (potentially) harmful to the interests of the company, to its future as a Dutch and European enterprise, and/or to the preservation of this critical value chain for Europe.”
When talking about Nexperia and its parent company Wingtech Technology, it is noteworthy to mention that last year the U.S Commerce Department included Wingtech on its “entity list”, which is a list of companies perceived as entities that might pose a risk to national security and are therefore subject to export controls. In addition, in 2023, the British government didn’t allow Nexperia to buy a Wales-based chipmaker factory again due to national security concerns. All this reflects general geopolitical tensions between China and the West concerning advanced technologies like computer chips.
Back in 2024, after the Dutch Ministry of Economic Affairs seized control of Nexperia, Wingtech published a social media post that criticized the ministry’s decisions and said that the company itself “firmly opposes the politicization of commercial matters” and “an excessive intervention based on geopolitical bias rather than a fact-based risk assessment based on the unfounded pretext of national security.” In addition, China’s Ministry of Foreign Affairs spokesman Lin Jian also commented that “relevant countries should genuinely uphold market principles and avoid politicizing economic and trade issues.”
China’s direct response was to block the re-export of Nexperia chips completed in its Chinese factories to Europe. Besides, according to Nexperia’s Chinese-based factory, the Dutch-based factory stopped supplying wafers to its Chinese factory, which further complicated the situation and made it harder to produce finished semiconductors. All this caused serious concerns among European carmakers, since these chips are crucial for building cars.
It’s important to note that approximately 70% of Nexperia chips made in Europe are sent to China to be completed and re-exported to other countries. Last month, the European Automobile Manufacturers’ Association (ACEA) said that if the Chinese ban was not lifted, Nexperia chip supplies would run out in weeks. Additionally, companies like Volvo Cars and Volkswagen warned that this shortage could lead to temporary shutdowns of their factories.
This week, China’s Commerce Ministry said in a statement that “the Netherlands should bear full responsibility” because its actions “have created turmoil and chaos in the global semiconductor supply chain”.
According to the White House, the topic of chips was also discussed during the meeting between Donald Trump and Xi Jinping in South Korea last week. Beijing has said that it will relax its export ban on automotive computer chips as part of a future trade deal between the U.S and China.
