Netherlands halts Nexperia takeover in gesture to China, says Dutch minister

The Hague - The Netherlands has suspended its takeover of Chinese-owned chip maker Nexperia in a sign of “goodwill” towards Beijing, Dutch Economy Minister Vincent Karremans said on Nov 19, after trade tensions spiked.

The dispute erupted in September when the Dutch government effectively took control of Nexperia, which is based in the Netherlands but whose parent company is China’s Wingtech.

China responded by banning re-exports of the firm’s chips, triggering warnings from automakers of production stoppages as the components are critical to onboard electronics.

But over the weekend, Beijing announced it would exempt some chips from the export ban, reportedly part of a trade deal agreed by President Xi Jinping and his US counterpart Donald Trump.

On Nov 19, Mr Karremans said that “in light of recent developments, I consider it the right moment to take a constructive step by suspending my order under the Goods Availability Act regarding Nexperia”.

“We are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world,” he said.

“We see this as a show of goodwill. We will continue to engage in constructive dialogue with the Chinese authorities in the period ahead,” he said.

The Netherlands cited national security concerns when it moved to take control of Nexperia, accusing the firm’s CEO of mismanagement. AFP