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Netherlands suspends Nexperia intervention following China negotiations
The Dutch government announced Wednesday it would suspend its September intervention at Nexperia, a Chinese-owned semiconductor manufacturer, citing "constructive talks" with Beijing that eased tensions over chip supply chains critical to Europe's automotive and electronics industries.
Background: Why the intervention began
The Hague initially acted under the Goods Availability Act, alleging "serious governance shortcomings" at Nexperia, including the improper transfer of assets, technology, and intellectual property to a foreign entity by the company's then-suspended CEO, Zhang Xuezheng. Authorities warned such actions threatened Dutch and EU strategic autonomy, risking disruptions to semiconductor supplies essential for car production and electronics manufacturing.
In October, a Dutch court ordered Zhang's removal-co-founder of Nexperia's parent company, Wingtech-after claims of mismanagement. The U.S. had already placed Wingtech on its "entity list" in December 2024, restricting American exports to the firm over national security concerns.
China's response and the path forward
Beijing welcomed the Dutch reversal as a "first step in the right direction" but emphasized unresolved issues, including the court's ruling stripping Wingtech of control over Nexperia. A Chinese government statement called the decision "a step away from addressing the root cause of global semiconductor supply chain turmoil."
Vincent Karremans, the Netherlands' economic affairs minister, stated the suspension followed Chinese measures to ensure chip supplies to Europe. "We are positive about the steps already taken by Chinese authorities," he said, signaling further dialogue ahead.
Industry impact and ongoing disputes
Nexperia, a key supplier of basic chips for automobiles, has faced scrutiny beyond the Netherlands. In the UK, it was compelled to divest a silicon plant in Newport amid national security concerns, though it retains a facility in Stockport. Wingtech, meanwhile, vowed to contest the Dutch court's decision, calling the allegations against Zhang "unproven."
"To date, no proof has been provided. If the Dutch government is sincere about resolving this, it should withdraw support for the legal proceedings-proceedings that now threaten Nexperia's continuity and Europe's economic security," a Wingtech spokesperson said.
The dispute underscores broader EU-China tensions over trade, technology transfers, and Beijing's ties to Russia, though the Dutch suspension may temporarily ease pressures on global chip supply chains.
