Dutch Government Suspends Intervention at Nexperia Following Talks with China
The Dutch government has suspended its intervention at Nexperia after constructive talks with China. The intervention, initiated in September under the Goods Availability Act, was due to governance shortcomings and concerns about European semiconductor supply crucial for cars and electronics.
Beijing welcomed the Dutch government's decision to halt its original action, viewing it as a first step toward a proper resolution.
Nexperia, a major supplier of basic computer chips to the car industry, plays a key role in global supply chains affected by chip shortages.
The original Dutch action cited concerns regarding activities attributed to the now-suspended CEO, Zhang Xuezheng, who was alleged to have improperly transferred product assets, funds, technology, and knowledge to a foreign entity, thereby undermining Dutch and European strategic autonomy and security of supply. Zhang Xuezheng, also the founder of Wingtech, was ordered removed by a Dutch court in October due to alleged mismanagement.
In December of the previous year, the US placed Wingtech on its entity list, restricting exports of American-made goods to the company without special approvals.
The intervention aimed to prevent scenarios where chips might become unavailable during emergencies.
This development comes amid ongoing EU-China trade tensions. Wingtech intends to challenge the Dutch decision. Meanwhile, in the UK, Nexperia sold its Newport chip plant over security concerns and currently operates a facility in Stockport.
