Nexperia has been transferred to the Netherlands / Depositphotos
The Dutch government has asserted authority over the Chinese semiconductor manufacturer Nexperia, mentioning a menace to financial well-being and the imperative to safeguard crucial technologies within Europe.
This is conveyed by Delo.ua, making reference to the Financial Times.
The Dutch Ministry of Economic Affairs shared information on Sunday, October 12, regarding the implementation of the Law on the Availability of Goods owing to “significant management inadequacies” at Nexperia, which has been under the oversight of the Chinese group Wingtech since 2019.
According to the department’s declaration, the rationale for this measure is to avert the scarcity of Nexperia’s completed and partially completed goods intended for the European automotive sector and consumer electronics in an “urgent situation.”
Economy Minister Vincent Karremans now possesses the capability to impede or reverse resolutions made by Nexperia’s governing body. These actions were initiated on September 30 but have only recently been disclosed to the public.
Wingtech's reaction
The Chinese proprietor, Wingtech, expressed strong disapproval of the verdict, branding it “an action of undue intervention instigated by geopolitical predisposition,” which contradicts the foundations of a market-driven economy. Wingtech’s stocks experienced a dip of approximately 10% on the Shanghai Stock Exchange this Monday.
Wingtech pursued aid from the Chinese administration and communicated an alteration in command at Nexperia.
Wingtech also affirmed that on September 30, the Dutch government issued a directive preventing Nexperia and its associated entities from executing any modifications to assets, intellectual rights, and personnel for a duration of one year.
The subsequent day, October 1, three leading Nexperia executives lodged an appeal with the Amsterdam court. The court promptly dismissed the Chinese CEO Zhang Xuezhen (in the capacity of both executive and non-executive director).
On October 7, the court mandated the assignment of an autonomous, non-Chinese director who would wield decisive voting privileges and act on behalf of Nexperia. The court also stipulated that all but one of Nexperia’s shares should be entrusted to an undisclosed individual for the intent of management, as reported by Wingtech.
The Dutch government, which had previously curtailed sales of cutting-edge chip production tools by ASML to China under duress from the US, emphasized that its recent endeavors were not aimed at any particular nations or the broader industry, but were solely concerned with “deficiencies” in Nexperia’s operations.
It’s worth recalling that China has strengthened its oversight of rare earth element exports, revealing restrictions targeted at foreign defense enterprises and semiconductor manufacturers.
