Chinese Controlled Semiconductor Bows to US
Pressure
Nexperia,
a computer chip maker headquartered in the Netherlands, was taken over by the Dutch
government after pressure from officials in Washington.
Background: The Dutch
government has taken control of Nexperia, a semiconductor
manufacturer headquartered in the Netherlands but owned by China’s Wingtech, following months of U.S. pressure over
Chinese ownership of sensitive technology assets.
Key Developments:
·
On September 30, Dutch authorities transferred
Nexperia’s decision-making powers to Economic Affairs
Minister Vincent Karremans, just hours after the U.S. expanded its trade
blacklist to cover the company.
·
Washington had warned The Hague that unless Nexperia replaced its Chinese CEO, Zhang Xuezheng, the
firm could face export restrictions like its parent Wingtech,
which was sanctioned in December 2024.
·
The Dutch government said the move was to protect
supply security of essential chips used in cars and electronics, though
court filings revealed direct U.S. diplomatic pressure prompted the action.
Broader Context:
·
The case underscores how the U.S.–China tech rivalry
is reshaping global supply chains, with Washington seeking to curb Chinese control
over semiconductors, minerals, and advanced manufacturing.
·
Analysts like Reva Goujon of the Rhodium Group
said other governments are now looking to reclaim Chinese-owned tech assets
on national security grounds, amid “growing regrets” over past foreign acquisitions.
·
While China lags in advanced AI chips, it dominates
production of older semiconductors vital for vehicles and appliances—raising
Western fears of overdependence.
China’s Response:
·
Days after the Dutch move, Beijing barred Nexperia’s Chinese units from exporting certain products,
calling it a reaction to U.S. “unilateral coercive measures.”
·
China’s Commerce Ministry said Washington’s actions
“undermine global supply chain security” and criticized the Dutch takeover
as an example of U.S.-driven economic coercion.
·
Beijing also announced new export controls on critical
minerals and sanctions on U.S. subsidiaries of South Korea’s Hanwha Group,
widening the scope of retaliation in the trade conflict.
Outlook: The Nexperia case highlights how European governments are becoming
active fronts in the U.S.–China struggle for tech dominance, as nations
race to reassert sovereignty over strategic industries.
Late
last month, Washington’s intensifying contest with Beijing for control over tech
supply chains spilled over in the Netherlands. The Dutch government, under pressure
from U.S. officials, took control of the Chinese-owned chip maker Nexperia.
Nexperia, which is headquartered in the Netherlands
but owned by the Chinese company Wingtech, operates a
complex, globe-spanning supply chain typical of chip manufacturing. The company
designs older types of chips used in cars and electronics and employs thousands
of people across Europe, the United States and Asia. Its factories press thin slabs
of silicon in Britain and Germany, and assemble and test chips in China, the Philippines
and Malaysia.
On
Sept. 30, the Dutch government declared that company decisions would now be determined
by its minister of economic affairs, Vincent Karremans. Hours earlier, the United
States had expanded the scope of a trade blacklist that meant Nexperia would face strict controls on its operations because
its owner, Wingtech, was already on the list.
In
a statement on Sunday revealing its action, the Dutch government said it moved to
prevent Nexperia’s products from becoming unavailable
in an emergency. But documents published in an Amsterdam court on Tuesday showed
that months earlier, U.S. officials had pressured the Dutch government about the
company’s ownership.
The
United States Department of Commerce placed trade restrictions on Wingtech last December. In June, American officials told the
Dutch Ministry of Foreign Affairs that Nexperia could
be next, unless the company replaced its Chinese chief executive, Zhang Xuezheng.
“The
fact that the company’s C.E.O. is still the same Chinese owner is problematic,”
the American officials said, according to the court documents.
Nexperia is just one of the companies caught in the
middle of a battle for control of the global chip industry, as Washington and Beijing
have claimed sweeping authority to control supply chains for semiconductors and
minerals, critical inputs for everything from cars to artificial intelligence systems.
As
the United States and China flex their influence over supply chains, other countries
will seek to unwind Chinese ownership of key technology assets on national security
grounds, said Reva Goujon, a director at Rhodium Group, a research firm. Nexperia was an obvious target.
The
Chinese government has spent billions on the goal of boosting its domestic industries,
and Chinese companies like the state-affiliated investors that sold Nexperia to Wingtech also ramped up
acquisitions of foreign firms that make chips and other technologies.
While
Chinese chip makers have struggled to make the cutting-edge chips that power advanced
A.I. systems, they make an increasingly large share of older types of chips. Some
officials in the United States and Europe have grown concerned that China could
come to dominate the market for those chips. Even though they are less advanced,
they are used in cars and a wide array of machinery and appliances.
Now,
many governments want these supply chains back under their control, Ms. Goujon said.
“There
have been some very big regrets,” Ms. Goujon said. “All these governments are very
uncomfortable with that and would like to see these assets back in their possession.”
Days
after the Dutch government took control of Nexperia, China’s
Ministry of Commerce issued a notice barring Nexperia’s
Chinese units from exporting some products, the company said in a statement on Tuesday.
The
company is seeking an exemption from the Chinese controls and “has deployed all
available resources to that end,” the statement said.
China’s
Ministry of Commerce has not publicly commented on its restrictions on Nexperia. He Yongqian, a spokeswoman
for the ministry, said at a briefing on Thursday that Washington’s expanded controls
had “seriously undermined the security and stability of the global industrial supply
chain.”
The
Dutch government’s takeover of Nexperia was “a clear example
of how the American rule harms the legitimate rights and interests of Chinese companies,”
Ms. He said.
Beijing
exerted its influence over another part of global technology supply chain last week
when it announced sweeping controls on critical minerals that are used in chips,
cars, missiles and more. The new rules closely resembled American technology controls
that Chinese officials have long criticized.
The
Chinese government also targeted an industry that it sees as crucial for its own
security and economic growth: shipping. On Tuesday, Beijing imposed sanctions on
American subsidiaries of the South Korean shipping company Hanwha, accusing them
of “supporting and assisting” the United States with its shipbuilding industry.
The
order took effect immediately and bars Chinese companies and individuals from doing
business with the Hanwha units.
Ms.
Goujon at Rhodium Group said governments will continue to look for ways to regain
control of critical technology manufacturing as the contest for influence escalates
between Washington and Beijing. “This has been building for a long time,” she said.