Netherlands Reverses Takeover of Chinese-Owned Chip Firm
The Netherlands is suspending its takeover of Chinese-owned semiconductor firm Nexperia, announced Vincent Karremans, the Dutch minister of economic affairs. The Netherlands has had "constructive discussions with the Chinese authorities" and is "positive about the steps the Chinese authorities have taken to restart the supply of chips to Europe and the rest of the world," he said Nov. 19 in a statement, according to an unofficial translation.
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"We see this as a sign of goodwill," Karremans said. "We will continue these constructive discussions with the Chinese authorities in the coming period.”
The reversal came more than a month after the Netherlands announced it had invoked its Goods Availability Act to remove Zhang Xuezheng as Nexperia's director and take control of most voting rights for its shares, which were previously indirectly held by parent company Wingtech Technology, a Chinese firm that was added to the U.S. Entity List late last year (see 2412020016). The Dutch government said then that it had concerns that China could use Nexperia to withhold supplies of chips needed across Europe and threaten national security.
Beijing objected to the move at the time, saying the Netherlands was "overstretching the concept of national security" (see 2510150007).
China's Ministry of Commerce said this week that it welcomed the decision to suspend the takeover, calling it a "first step in the right direction towards a proper resolution." But China also believes that "revoking the executive order is still a step away from addressing the root cause of the global semiconductor supply chain turmoil and chaos," a ministry spokesperson said, according to an unofficial translation. The spokesperson added that the Netherlands' goal of removing Wingtech's control over Nexperia "remains a key obstacle to resolving the issue."
"Both sides agree that administrative intervention should be eliminated, and that companies should be supported and encouraged to resolve internal disputes through negotiation and in accordance with the law," the spokesperson said.