Dutch Prime Minister: "Efforts Underway to Resolve Nexperia Issue... No Disruption in Chip Supply"

Reuters Yonhap News

On October 23 (local time), Dutch Prime Minister Dick Schoof stated that efforts are underway to resolve the conflict with China surrounding Nexperia, an automotive semiconductor manufacturer. He emphasized that there will be no disruption to the supply of automotive semiconductors.

Prime Minister Schoof, speaking to reporters ahead of the EU summit in Brussels, Belgium, said, "In recent days, the Dutch and Chinese ministers of economic affairs have discussed this issue, and it has also been discussed with several EU member states." He stressed that resolving the situation and ensuring that the (automotive) semiconductor industry does not face disruptions is important.

Nexperia, headquartered in Nijmegen, the Netherlands, was acquired in 2019 for 3.6 billion dollars by Wingtech, China's largest smartphone assembler. On September 30, the Dutch government invoked the "Product Availability Act" for the first time, citing Nexperia's improper management, and took emergency measures. As a result, the controlling rights of Wingtech Chairman Zhang Xuezheng over Nexperia were revoked. The Dutch government stated that, under this law, it can nullify decisions made by the boards of private companies if they are deemed a threat to national security.

Some interpret the Dutch government's unprecedented action as an attempt to comply with U.S. demands to strip Chairman Zhang, a Chinese national, of management rights as a condition for exporting Nexperia products to the United States. In response, Chinese authorities strongly opposed the move and threatened to ban the export of products from Nexperia's factories and subcontractors in China. With over 80% of Nexperia products reportedly manufactured in China, concerns are mounting within the European automotive industry over a potential supply crisis for automotive semiconductors.

This content was produced with the assistance of AI translation services.