Newsletters
China has called on the Netherlands to "immediately correct its wrongdoing" in relation to its recent actions against semiconductor firm Nexperia, accusing Dutch authorities of triggering a global semiconductor supply chain crisis that has especially disrupted the European automotive industry.
According to the state-run Xinhua, a Chinese Commerce Ministry spokesperson reiterated the country’s firm opposition to the move by the Dutch government, describing it as "improper administrative interference" in the internal affairs of Nexperia.
"It is perplexing that in the face of widespread anxiety and concern within the global industry, the Dutch side remains unmoved and persists in its own course, showing no sense of responsibility whatsoever," the spokesperson said.
Nexperia, known for producing components essential to a wide range of electronics, is a key player in the European semiconductor landscape.
In late September, the Dutch government took control of the company, citing national security concerns and the risk of sensitive technology being transferred to its Chinese parent company, Wingtech, following warnings from the United States about China’s growing role in critical supply chains.
As part of the takeover process, Dutch authorities blocked certain management decisions at Nexperia that were deemed to pose a threat to Dutch and broader European interests. The move prompted a sharp reaction from Beijing, which viewed the intervention as a violation of international business norms and a disruption to the free flow of technology.
In retaliation, China halted exports of key chips, causing immediate disruptions, particularly within the European automotive sector.
Following alarms raised by leading car manufacturers over their reliance on Nexperia chips and insufficient inventories to withstand a supply constraint, negotiations between the Netherlands and China led to temporary relief. China lifted its chip export ban in November, and the Dutch government paused its planned takeover of Nexperia, though the dispute remains unresolved.
Wingtech has since entered talks with court-appointed custodians overseeing Nexperia’s operations in an effort to regain control of the Netherlands-based chipmaker, yet the Dutch side continues to stand by its position.
Most recently, Dutch Economic Affairs Minister Vincent Karremans defended the intervention, stating, "I wouldn’t characterise it as enjoyable, but it was necessary," he told the Dutch daily De Telegraaf. "And I don’t let my decisions be guided by whether they’re enjoyable or not."
China remains the leading supplier of semiconductors used across multiple industries, supported by its control of around 70% of global rare-earth element production and over 90% of global rare-earth refining capacity, both of which are critical for chip manufacturing and related components.
Set as preferred source
2 min read
1 min read
