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EU Chip Standoff: Netherlands Suspends Nexperia Seizure
19 Nov
Summary
- Dutch government suspended seizing Chinese-owned Nexperia chipmaker.
- China banned Nexperia chip exports, disrupting global car supply chains.
- Nexperia chips now flowing again to Volkswagen and Honda factories.
The Netherlands has paused its decision to seize control of Nexperia, a significant semiconductor firm owned by China's Wingtech Technology. This action was taken as a conciliatory gesture towards Beijing following a tense six-week standoff that had threatened global automotive manufacturing. The Dutch government cited recent constructive dialogue with Chinese authorities as justification for this suspension.
The dispute escalated when China retaliated against the Netherlands' initial seizure order by banning Nexperia chip exports. This ban disrupted supply chains for major car manufacturers, leading to production halts in various global locations. However, China lifted this export ban on November 9, and Nexperia chips are reportedly flowing again to factories operated by Volkswagen and Honda.
While the immediate crisis appears to have subsided, the Dutch government retains the right to reassert control if threats to critical technological knowledge and capabilities re-emerge. The situation underscores the complex geopolitical dynamics influencing global chip production and supply chains, particularly concerning the EU's relationship with China.
