Netherlands Seizes Chinese-Owned Chipmaker
This intervention is anticipated to highlight a broad supply chain crisis, with the automotive production sector likely to be the most affected.
The seizure of the European chipmaker, controlled by a Chinese firm, underscores how the US-China chip war is influencing industrial operations and supply chains on a global scale.
Nexperia provides semiconductors to all major car manufacturers across Europe, the United States, and Japan. Any interruptions in its production could push the automotive industry into a predicament reminiscent of the chip shortages experienced during the pandemic.
While US President Donald Trump and Chinese President Xi Jinping reached a temporary agreement on chips during a summit in South Korea on Oct. 30, continuing frictions between Beijing and Amsterdam maintain the risk of a worldwide chip supply disruption.
The Dutch government confirmed it assumed control of Nexperia’s management on Oct. 1. Wingtech, the Chinese firm, had acquired a majority stake in the company in 2019, giving it significant influence over the chipmaker’s operations.
Additionally, Nexperia’s Chinese CEO, Zhang Xuezheng, was removed by the Netherlands due to "serious management issues," which reportedly jeopardized the preservation of vital technical knowledge and production capabilities both within the country and across Europe.
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