The Dutch government has suspended its seizure of Chinese-owned chipmaker Nexperia, a move that had sparked a six-week dispute between the EU and China and threatened to halt car production globally. Economy Minister Vincent Karremans announced the suspension on Wednesday as a gesture of 'goodwill' to Beijing, following constructive talks with Chinese authorities.
The initial seizure on 30 September prompted China to ban exports of Nexperia chips, disrupting supply chains for global carmakers and causing production pauses in Mexico. China lifted the ban on 9 November, and Volkswagen and Honda have reported that chip supplies have resumed to their factories in Germany and Mexico.
Karremans stated that the suspension was made in close consultation with European and international partners, but indicated the Netherlands retains the right to reinstate the measure if threats to production or intellectual property re-emerge. The government had invoked the Goods Availability Act, a Cold War-era law, to take supervisory control of Nexperia, citing concerns over the continuity of crucial technological knowledge and capabilities.
Nexperia welcomed the recent steps but called for full restoration of the chip supply chain, noting that China should have sufficient wafers for several months. However, the European car manufacturers association (ACEA) expressed ongoing concerns about supply continuity, with trade director Jonathan O'Riordan stating, 'For us the situation remains critical and we need a workable contingency agreement.'
Wingtech Technology, Nexperia's Chinese owner, urged the Dutch government to end its legal action entirely, arguing that a suspension is insufficient. The company rejected accusations of mismanagement against its former CEO, Zhang Xuezheng, and noted that no proof has been provided.
