Nexperia Is Working To Bring Back Semiconductor Exports To The Automobile Sector

The tense crisis between China and the Netherlands over control of a key chipmaker has entered a phase of easing tensions, after Amsterdam suspended a controversial decision to take control of the Chinese company Nexperia.

The dispute threatened to halt car production worldwide, as Nexperia is one of the most important suppliers of chips to the global auto industry. The Dutch government said it had suspended the decision after “constructive” meetings with Chinese authorities and that talks would continue, CNN reports.

Amsterdam took control of Nexperia in late September, under pressure from the US government, which blacklisted its Chinese parent company, Wingtech Technologies, as a security risk. Nexperia’s CEO was also suspended by court order.

Last month, Beijing halted shipments of Nexperia chips from China, sparking fears that automakers in the US and Europe could be left without key components. China then agreed to allow exports of chips essential to the auto industry.

“In light of recent developments, I believe it is the right time to take a constructive step and suspend my decision regarding Nexperia, in close coordination with European and international partners,” said Dutch Minister of Economic Affairs Vincent Karemans.

“Over the past few days, we have had constructive meetings with the Chinese authorities. We positively assess the measures that China has already taken to ensure chip deliveries to Europe and the rest of the world. We see this as a sign of goodwill,” said Karemans.

China’s Ministry of Commerce welcomed Amsterdam’s decision, calling it “a first step in the right direction towards an adequate solution.”

Maroš Šefčovič, in charge of EU trade policy, also welcomed the Dutch move, stressing on the X platform that it represents “another key step in stabilising our strategic chip supply chains.”

Nexperia is a key supplier to the global auto industry, providing about 40 percent of automotive chips in a segment that includes transistors and diodes, according to data firm TechInsights. The U.S. Commerce Department placed Wingtech on a list of companies subject to trade restrictions in December last year.

The Dutch government said last month it had taken control of Nexperia over economic security concerns. China imposed export controls in early October, banning Nexperia and its affiliates from exporting certain components made in China.

Following a meeting between US President Donald Trump and Chinese leader Xi Jinping late last month, Beijing said it would allow exceptions to newly imposed chip export controls.

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