On November 19, Dutch Minister of Economic Affairs Karremans announced the suspension of administrative intervention against Nexperia. It is important to note that this is a suspension, not a cancellation, indicating that uncertainties still exist.
The Dutch government, on September 30, took control of Nexperia, a subsidiary of Wingtech Technology, citing “national security” as the reason, with a duration of one year. The subsequent series of actions directly led to a crisis in the global automotive supply chain. Due to the chip shortage, some companies experienced production line shutdowns.
After negotiations with us, the Dutch government made a temporary change. Reality has also taught the Netherlands a lesson: European countries need to take Chinese companies seriously regarding the chip supply chain issue, rather than casually undermining the global supply chain through sanctions or administrative interventions, as this will ultimately harm themselves.
We must also understand one fact: the Netherlands has only pressed the pause button. There is still a possibility that, under pressure from certain forces, related measures may be restarted. This can be seen from the gradual restrictions on the export of lithography machines to us from the Netherlands.
Before visiting China, Karremans stated in an interview that even knowing his actions could lead to a rupture in the global supply chain, he would still proceed. Many media outlets also believe that the Netherlands stubbornly insists on its mistakes and shows no willingness to resolve the issues.
German automotive parts giant Bosch stated on Tuesday that due to issues with Nexperia, its global supply chain system still faces chip shortages, and three factories located in Germany and Portugal will continue to face shutdowns. Although China has relaxed the export ban on Nexperia chips, Nexperia Netherlands has not provided wafers to Nexperia China. Nexperia Netherlands stated that any decisions are still under the control of the Dutch Ministry of Economic Affairs.
After the Netherlands pressed the pause button, the supply chain tension caused by Nexperia may be alleviated. This incident may make European countries realize that the “pan-security” policy is not safe and does not reduce their risks; it may even bring crises to themselves. However, due to the continued existence of ideological and political interventions, friction between European countries and us may continue to occur.
It is hoped that European countries can learn from this experience: in the era of global supply chains, no country can stand alone; only with a stable supply chain can economic security be ensured. Take ASML as an example: it is precisely because of the supply from thousands of suppliers worldwide that advanced lithography machines can be manufactured. In this regard, the Netherlands has a deeper understanding than other countries.
Image source: Nexperia