WASHINGTON (dpa-AFX) - The Dutch government has decided to pause its intervention with Nexperia, a chipmaker owned by China and located in the Netherlands. This comes after what they described as 'constructive talks' with officials from China.
Back in September, the Dutch stepped in due to 'serious governance issues' and concerns that Europe could face a shortage of basic chips that are critical for cars and various electronic devices. In retaliation, China restricted exports of Nexperia chips, which raised alarms about potential disruptions in the supply chain.
But on Wednesday, the Netherlands announced it would hold off on its earlier decision, highlighting the progress made in discussions with Beijing.
China welcomed this decision, viewing it as a positive initial step toward resolving the ongoing dispute. Nexperia is significant in the production of simple yet vital chips for the global automotive industry, which has already seen manufacturing lines halted due to past shortages.
Dutch economic affairs minister Vincent Karremans mentioned that the government is optimistic about the measures China has taken to ensure that chip supplies keep flowing to Europe and beyond. The initial intervention stemmed from worries about actions related to Nexperia's former CEO, who was found by a Dutch court to have mismanaged the company.
Wingtech, the Chinese owner of Nexperia, continues to deny these allegations and is determined to fight against the ruling. Despite the temporary halt in intervention, China indicates that further work is needed to tackle the underlying issues affecting the global semiconductor supply chain.
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