Dutch say takeover of chipmaker Nexperia 'not against China'

Dutch say takeover of chipmaker Nexperia 'not against China'
by AFP Staff Writers
Brussels, Belgium (AFP) Oct 23, 2025

The Netherlands' seizure of Chinese-owned chipmaker Nexperia was not a "measure against China", Dutch Prime Minister Dick Schoof said Thursday as trade tensions spike between Europe and Beijing.

Dutch officials invoked a Cold War-era law in late September to effectively take control of Nexperia, citing national security concerns, as chip manufacturing increasingly becomes a focus of geopolitical tensions.

The company says Beijing has, in turn, banned it from exporting certain goods from China since October 4.

"Nexperia is about mismanagement by the CEO, that's what it's about, it's not a measure directed against China," Schoof told reporters before meeting fellow EU leaders in Brussels with trade on the agenda.

European carmakers have warned the row between Beijing and Nexperia risks causing stoppages and disruption on car production lines in Europe.

It comes at a tense moment in EU-China ties after Beijing announced on October 9 new controls on the export of rare-earth technologies and items.

Brussels is pushing to urgently resolve that issue through talks, with Chinese Commerce Minister Wang Wentao expected in Brussels next week.

EU economy chief Valdis Dombrovskis, however, warned in an interview with German newspaper Handelsblatt that Brussels was "examining possible countermeasures should the conditions not improve".

"The Chinese leadership must understand that we cannot accept what is currently happening. Nevertheless, we are striving to find a mutual resolution and do not wish to escalate the conflict," German Chancellor Friedrich Merz told reporters before heading into the Brussels talks.

A European diplomat said China was not explicitly on the summit's agenda, but "unfair trade practices are -- and you know where they come from".

Diplomats pushed back at suggestions the EU could deploy a powerful trade tool called the anti-coercion instrument -- never before used -- saying that was not being considered at this stage.

"The anti-coercion instrument has never been mentioned for China at all," one EU diplomat said.

Referred to as a "bazooka" or "nuclear" option, the armoury allows the EU to take measures such as import and export restrictions on goods and services.

Nexperia chip crisis could spread: German industry group
Frankfurt, Germany (AFP) Oct 23, 2025 - Germany's machinery and equipment makers' association warned Thursday that a shortage of Nexperia semiconductors triggered by a stand-off between China and the Netherlands could hit sectors beyond the car industry.

The Dutch move to effectively take control of Netherlands-based but Chinese-owned chipmaker Nexperia has sparked fears of shortages, with Europe's auto industry particularly fearful of a hit to production.

Thilo Brueckner, electronics division chief at Germany's influential VDMA association, said that "like the car industry, the machine-making sector is definitely affected by the looming chip shortage".

Machinery that uses combustion engines, such as in the construction and agricultural industries, could in particular be affected, said Brueckner, whose association represents some 3,6000 companies.

Dutch officials invoked a Cold War-era law, citing national security concerns, when it took control of Nexperia last month, with the chip sector increasingly at the heart of geopolitical tensions.

The company then said Beijing had banned it from exporting certain goods from China. Carmakers are particularly worried as they make extensive use of Nexperia chips for onboard electronics.

German auto titan Volkswagen has warned that it cannot not rule out "short term" production stoppages, while emphasising that it is searching for alternative suppliers.

But industry experts say that substituting Nexperia chips is unlikely to be straight-forward, since they are embedded in products that have to be tested to meet strict automotive safety standards.

Analysts at Deutsche Bank said in a note Thursday that German car production could fall as much as a third in a "worst-case scenario", with a 10 percent fall more likely.

Germany's economy ministry held crisis talks late Wednesday with auto industry representatives to discuss the looming shortages.

Participants of the talks agreed that Berlin would seek to mediate between China, the Netherlands and the United States about Nexperia chip deliveries, the Handelsblatt newspaper reported.

Washington in December put Wingtech, the Chinese parent company of Nexperia, on an "entity list" of corporations viewed as acting contrary to the national security of the United States.