Dutch Government Pauses Nexperia Takeover

Dutch Government Suspends Nexperia Takeover: A Win for Chip Supply ChainThe Dutch government has temporarily halted its plan to seize control of Nexperia, a chipmaker with roots in the Netherlands but owned by China. This decision comes after concerns about potential technology transfer to China. The initial takeover, which occurred in late September, strained relations between Beijing and The Hague.Dutch Economy Minister Vincent Karremans announced the suspension, citing progress in diplomatic talks with China. These discussions secured the supply of vital chips for Europe, including those produced by Nexperia in Europe, which were previously sent to China for final packaging.Both the US and China had imposed export restrictions on Nexperia, disrupting the chip supply chain for car manufacturers worldwide. Chinas restrictions targeted Nexperia China, while the US extended its restrictions on Nexperias owner, Wingtech, to include Nexperia itself.China committed to restarting trade from Nexperias Chinese facilities as part of a larger trade agreement with the US. This development, along with diplomatic progress, led the Dutch government to suspend the takeover, viewing it as a victory for maintaining critical chip supply.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.