Dutch government releases control of Chinese chipmaker Nexperia

Nov. 19 (UPI) -- The Dutch government on Wednesday ended its control of Chinese chipmaker Nexperia after a little over a month, easing a dispute between the Netherlands and China.

Minister of Economic Affairs Vincent Karremans said in a statement that after the government had held "constructive meetings" with Chinese authorities, now was "the right moment to take a constructive step" by suspending its control over Nexperia that was implemented under the Goods Availability Act in October.

He added that China appeared to be allowing European and other foreign companies to export Nexperia chips, which it had initially blocked following the seizure.

"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," Karremans 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."

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Nexperia, a division of China's Wingtech Technology, makes chips used in automotive, consumer electronics and other industries. It's critical to maintain Europe's tech supply chains.

The company's headquarters are in Nijmegen, the Netherlands, and it employs thousands in Europe, the United States and Asia. It designs and manufactures older types of chips used in cars and electronics.

In October, the Netherlands government seized control of the company via the Goods Availability Act, "due to serious governance shortcomings at semiconductor manufacturer Nexperia. ... The decision aims to prevent a situation in which the goods produced by Nexperia (finished and semi-finished products) would become unavailable in an emergency. The company's regular production process can continue."

Karremans said in a statement Wednesday that the concerns "stemmed from actions attributed to the now-suspended CEO, involving the improper transfer of product assets, funds, technology, and knowledge to a foreign entity."

"These actions ran counter to the interests of the company, its shareholders, and Dutch and European strategic autonomy and security of supply," he said.

After the seizure, China responded by blocking exports of the finished products.

European Union Commissioner for Trade and Economic Security Maros Sefcovic lauded the decision on X.

"I welcome the decision by the Netherlands -- another key step in stabilizing our strategic chip supply chains. Continued constructive engagement with partners remains essential to securing reliable global flows. I stay in close contact with all my counterparts," Sefcovic said.