China Urges Netherlands To Rectify ‘Mistakes’ In Chipmaker Nexperia, Halts Its Chip Shipments

China-Netherlands chip row deepens, increasing global supply chain tensions. Image Credit: Reuters
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China called on the Netherlands on Wednesday to rectify what it claimed were “mistakes” regarding chipmaker Nexperia and eliminate impediments to the stability of the global chip production and supply chain.

The Netherlands took control of Nexperia, a Dutch subsidiary of the Chinese firm Wingtech, claiming that the founder sought to move the company’s technology and production to China in September.

Beijing responded by cutting off shipment of Nexperia chipsets, which were used in cars and consumer electronics, most of which are packaged in China.

The Chinese commerce ministry said in a statement that “China once again urges the Netherlands not to act unilaterally, but to immediately correct its mistakes and clear the obstacles to restoring the stability and security of the global semiconductor supply chain.”

The Dutch government could not be immediately contacted early on Wednesday. The Dutch government paused its intervention in Nexperia in November as a sign of goodwill, following ongoing negotiations with China.

Wingtech has begun negotiations with court-appointed custodians of Nexperia regarding control of the Netherlands-based chipmaker, although Economic Affairs Minister Vincent Karremans has justified his move to intervene in Nexperia.

Recently, in an interview with De Telegraaf, Karremans once again justified his decision to assume control of Nexperia. He stated to Dutch Daily, “I wouldn’t characterise it as enjoyable, but it was necessary. And I don’t let my decisions be guided by whether they’re enjoyable or not.”

Therefore, the Chinese commerce ministry mentioned the Dutch position as “perplexing.” He further added, “China has repeatedly emphasised that the Netherlands’ inappropriate administrative interference in the internal affairs of Nexperia has led to a crisis in the global semiconductor supply chain, and the Netherlands must bear full responsibility for this.”