China accuses Netherlands of disrupting global chip supply over Nexperia seizure

According to the statement of China’s Ministry of Commerce, the Dutch government has been rather uncooperative in resolving the dispute over chipmaker ￰0￱ warned that unilateral actions by The Hague have disrupted global semiconductor supply ￰1￱ authorities seized control of Nexperia at the end of September, citing concerns about national security risks posed by Wingtech, Nexperia’s parent company based in ￰2￱ has responded by restricting exports of Nexperia-made chips from its factories, which account for a significant portion of the company’s global ￰3￱ exemptions have been granted, but Beijing says further measures could follow if the issue is not ￰4￱ Ministry of Commerce accused the Netherlands of interfering in corporate affairs and called on the Dutch government to take “constructive steps” to maintain supply-chain ￰5￱ officials warned that the lack of resolution threatens both the global tech industry and bilateral economic ￰6￱ insists that talks between the two governments are still going on China’s latest complaint about the Dutch inaction signals just how difficult it will be for both nations to resolve ownership of Nexperia.

China’s commerce ministry shared, “The Dutch side continues to act unilaterally without taking concrete steps to resolve the issue, which will inevitably exacerbate the adverse impact on the global semiconductor supply ￰7￱ is something neither China nor the global industry wishes to see.” However, speaking to reporters on Tuesday, a spokesperson for the Dutch Ministry of Economic Affairs stated that discussions between the Netherlands and China were still ￰8￱ noted, “We remain in contact with the Chinese authorities and our international partners to work toward a constructive solution that is good for Nexperia and our economies.” European car-parts makers are still scrambling to secure exemptions from China’s new export controls on Nexperia products, introduced shortly after the Dutch government’s takeover of the ￰9￱ most of Nexperia’s chips are manufactured in Europe, approximately 70% are packaged in ￰10￱ a meeting between ￰11￱ Donald Trump and Chinese President Xi Jinping, the White House stated that Beijing would resume trade from Nexperia’s Chinese sites, a promise that industries reliant on the chips are now hoping will ￰12￱ also stated they would implement a one-year suspension of the amended “50% subsidiary” rule, a decision that puts pressure on the Netherlands to roll back its control of ￰13￱ China said it had several contingency plans to ensure it can continue distribution On Sunday, Nexperia China announced that operations would proceed without disruption, having lined up alternative wafer suppliers to ensure it can continue to meet orders well into next ￰14￱ stated that it had prepared several contingency plans in a bilingual statement released early ￰15￱ also reiterated that its manufacturing lines remain stable, with “sufficient inventories” to sustain supply beyond ￰16￱ over a week ago, the firm had temporarily stopped wafer shipments to its Dongguan operations because its payment conditions on the contract weren’t being ￰17￱ further lashed out at the Dutch headquarters’ claims for this suspension, stating that it had done nothing to violate the contract ￰18￱ added that the Dutch headquarters of Nexperia currently owes the Dongguan assembly plant over 1 billion yuan (about $140 million) in unpaid ￰19￱ China has stated that it is moving quickly to certify additional wafer suppliers and anticipates resuming full operations next ￰20￱ also stressed that its history and customers are the bedrock on which this company was built, and that even under suspension, it would uphold its ￰21￱ you're reading this, you’re already ￰22￱ there with our newsletter .