EU Hails ‘Progress’ in Nexperia Talks With China as Dutch Seizure Stirs Chip Supply Debate
Udumbara
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The European Union on Nov. 3 hailed the “progress” that has been made amid the ongoing dispute between the Netherlands and China over chipmaker Nexperia.
Maros Sefcovic, the European commissioner for trade and economic security, as well as interinstitutional relations and transparency, said that he “welcomed progress on Nexperia, key to restoring a semiconductor supply chain.”
He did not elaborate on the precise nature of the progress he said had been made.
Following the Dutch government’s seizure of Nexperia on Sept. 30 over concerns about the potential transfer of crucial technology to its Chinese parent company, the Chinese Communist Party (CCP) cut off exports of the company’s finished chips, which are mostly packaged in China.
During a press briefing on Nov. 4, China’s commerce ministry accused the Dutch government of being uncooperative and of having “interfered” in Nexperia’s affairs and disregarded Beijing’s demands during consultations.
The CCP said these actions by the Dutch government would negatively impact the global semiconductor supply chain.
Auto Industry Response
Several car manufacturers, including Volkswagen and Mercedes, have said that the dispute has thus far not affected production.Mercedes-Benz CEO Ola Kaellenius said that there were signs that an understanding was closer to being reached between China, Europe, and the United States.
The German carmaker has sufficient chips for now, Kaellenius said.
“We will see what the American–Chinese agreement leads to. We are watching that carefully,” he said.
A Volkswagen spokesperson said on Oct. 30: “The supply shortage at the Dutch chip manufacturer Nexperia continues, for the time being, to have no impact on production at the vehicle manufacturing plants of the Volkswagen brand in Germany.
“In view of the dynamic situation, however, short-term impacts on the production network of the Volkswagen Group cannot generally be ruled out,” the spokesperson continued, adding that the company remained in close contact with suppliers as it examines alternatives.
The CEO of Jeep and Fiat maker Stellantis, however, criticized Europe’s supply chain vulnerabilities on Nov. 4, saying they were putting the company at a competitive disadvantage compared to rivals in China.
“Today our system means we have zero autonomy as an industry,” Antonio Filosa said. “Look at the Nexperia chip crisis. Look at the April rare earth crisis that we went through very painfully.”
A spokesperson for the Dutch Ministry of Economic Affairs said that negotiations are still ongoing.
A ‘Highly Exceptional’ Step
The Dutch government took the “highly exceptional” step of seizing control of chipmaker Nexperia on Sept. 30, freezing assets and replacing its Chinese executives.The intervention gives the government the power to reverse or block management decisions it sees as harmful.
Nexperia, which manufactures semiconductors for cars and consumer electronics, is owned by Jiaxing-based company Wingtech.
Nexperia’s parent company, Wingtech, was once private but is now partially state-owned, directly placing it under CCP control. Wingtech acquired Nexperia in 2018 for more than $3 billion, marking China’s largest cross-border semiconductor acquisition at the time.
The Epoch Times contacted Nexperia, Wingtech, and the Dutch Ministry of Economic Affairs for comment and did not receive a response by publication time.
