Netherlands urged to rectify mistake regarding Chinese chipmaker Nexperia

Dutch Government Faces Criticism Over Chipmaker Nexperia

The Chinese government has accused the Netherlands of causing a “crisis” in global supply chains by blocking Nexperia, a Chinese-owned chipmaker, from making key decisions without approval. China’s Ministry of Commerce stated that the Netherlands should immediately correct its actions and cease any improper administrative interference in the company.

In September, the Dutch government issued an order blocking Nexperia from making important decisions without government approval, citing concerns about the relocation of European production to China and ensuring chip supplies. The United States had previously warned the Dutch government that Nexperia would likely be placed on Washington’s sanctions list unless it replaced its Chinese CEO, Zhang Xuezheng.

The Dutch government announced last month that it had suspended the order following “constructive” talks with Beijing. However, a Dutch court ruling that forced out Zhang remains in effect. China has expressed perplexity at the Dutch government’s continued stance on the matter, stating that it shows no responsible attitude towards the global semiconductor industry and supply chain.

The dispute between Beijing and The Hague has been ongoing for months over Nexperia’s status as a leading producer of low-end semiconductors for cars and consumer electronics. China had previously retaliated by blocking exports of finished chips packaged at Nexperia’s Chinese production facilities, but announced last month that it would exempt civilian-use chips from the restrictions.

Japanese carmakers Honda and Nissan have announced production cuts due to chip shortages related to the dispute. The situation remains unresolved, with both governments continuing to engage in diplomatic efforts to resolve the issue.

Source: Al Jazeera