The Dutch Minister of Economic Affairs, Karremans, issued a statement on September 19, announcing the suspension of the administrative order against Nexperia. According to AFP, this indicates a significant gesture of goodwill from the Netherlands towards China.
The Dutch side stated in the announcement: “In light of recent developments, I believe it is an appropriate time to take constructive measures, namely to suspend the administrative order issued against Nexperia under the Goods Availability Act after close consultation with our European and international partners.”
Nexperia, originally a subsidiary of Philips, is headquartered in the Netherlands and was acquired by the Chinese semiconductor leader, Wingtech Technology, in 2018. However, at the end of September this year, the Dutch government took operational control of Nexperia on the grounds of “national security.”
Subsequently, China banned the export of the company’s products from China to Europe.
The components produced by Nexperia are widely used across multiple industries, and this ban has raised widespread concerns: if the crisis continues, the global production chain will be severely affected. These products are primarily used in the automotive manufacturing industry, as well as in industrial components and consumer electronics.
01 “Constructive Dialogue”
AFP noted that the suspension of the takeover does not mean that the takeover decision has been permanently canceled. The Dutch side can still re-implement this measure in the future.
However, according to Dutch Minister of Economic Affairs Karremans, he made the decision to suspend the takeover after “close consultations” with European and international partners and after holding “constructive meetings” with the Chinese side in recent days.
“We welcome the measures taken by the Chinese side to ensure the supply of chips to Europe and globally,” Karremans added, “We believe this is a sign of goodwill. In the coming months, we will continue to maintain constructive dialogue with the Chinese side.”
02 Response from China
On September 19, a spokesperson for the Chinese Ministry of Commerce responded to questions regarding Nexperia, stating that on November 18 and 19, government departments from both China and the Netherlands held two rounds of face-to-face consultations in Beijing regarding the Nexperia issue. During the consultations, the Chinese side reiterated that the source and responsibility for the current chaos in the global semiconductor supply chain lies with the Dutch side, urging the Dutch side to take practical actions to swiftly and effectively resolve the Nexperia issue and restore the safety and stability of the global semiconductor supply chain. The Dutch side proactively proposed to suspend the administrative order issued by the Dutch Minister of Economic Affairs under the Goods Availability Act.
China welcomed the Dutch side’s proactive suspension of the administrative order, viewing it as a first step in the right direction towards properly resolving the issue. However, there remains a gap to address the root cause of the turmoil and chaos in the global semiconductor supply chain, which is the “repeal of the administrative order.” Additionally, the erroneous ruling by the corporate court, which stripped Wingtech of control over Nexperia in the Netherlands, remains a key obstacle to resolving the issue. China hopes the Dutch side will continue to demonstrate a sincere willingness to cooperate with China and genuinely propose constructive solutions to the problem. Both sides agreed to eliminate administrative interventions and support and promote enterprises to resolve internal disputes through consultation in accordance with the law, thereby protecting the legitimate rights and interests of investors and creating more favorable conditions for restoring the safety and stability of the global semiconductor supply chain.
(Comprehensive report from the European Times)
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