Diplomatic progress slows Nexperia crisis

The Dutch government has paused its intervention in chipmaker Nexperia after officials described promising diplomatic progress with China, easing a months-long standoff that had disrupted global supply chains. The suspension follows talks in which Beijing began relaxing export limits it had imposed on Nexperia’s finished chips, restrictions that had deepened shortages for major carmakers including BMW, Honda, Nissan, Volkswagen, and Bosch.

The dispute began in September when the Netherlands seized control of Nexperia from its Chinese owner Wingtech, invoking the Goods Availability Act, a Cold War-era law that had never been used before. Dutch authorities stated that the takeover was necessary to safeguard national security and prevent Wingtech founder Zhang Xuezheng from relocating production to China, citing allegations of mismanagement and attempts to undermine European operations.

Beijing retaliated by restricting chip exports, while management on both sides blocked shipments and orders amid a worsening internal corporate conflict.

Economy Minister Vincent Karremans stated that the government was encouraged by China’s efforts to restore chip supplies and would continue negotiations alongside European and international partners. The EU trade chief Maroš Šefčovič and several major automakers welcomed the announcement, though industry leaders cautioned that it remains too early to predict how quickly supply chains will stabilise.

With the Chinese side now selling stockpiled chips to ease shortages and the European side planning its response, the easing of tensions marks a temporary reprieve in a dispute that highlighted the fragility of Europe’s semiconductor dependencies and the geopolitical risks tied to them.

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