Dutch Government Lifts Intervention in Nexperia, Easing chip Supply Concerns for European Automakers
The Hague, Netherlands – The Dutch government announced wednesday it is suspending its intervention in semiconductor company nexperia, potentially resolving a weeks-long disruption to chip supplies for European car manufacturers. The move follows assurances from Chinese authorities regarding continued chip exports.
The intervention began in late September when the Dutch government removed Nexperia’s Chinese CEO, citing national security risks and potential technological leakage. Officials pointed to “serious management deficiencies and measures” indicating threats to Dutch and European economic security, fearing the loss of vital technologies and manufacturing capabilities. Utilizing a previously untested law designed to prevent goods shortages, the government froze Nexperia’s operations and blocked the relocation of equipment or production departments.
In response, Beijing blocked chip exports from Nexperia’s factory in China – a notable facility, as most of the company’s chips are manufactured in Asia. This export ban created uncertainty for car manufacturers reliant on Nexperia’s products. China reportedly believed the United States was behind the Dutch actions,escalating international political tensions.
“Based on recent developments,I believe that the time has come for a constructive step,” stated Acting Dutch Economy Minister vincent Karremans. he added the decision was made “in close consultation with our European and international partners.”
Karremans confirmed the government “positively evaluate[s] the steps taken by the Chinese authorities to ensure chip supply for europe and the rest of the world,” viewing them “as a sign of good intentions.” He stated that constructive dialog with Chinese authorities will continue.
The European Commission welcomed the suspension of intervention. EU Commissioner Maros Sefcovic stated Wednesday that the Netherlands’ decision “helps stabilize chip supply chains.”
