Nexperia headquarters in Nijmegen, the Netherlands
Nexperia, a computer chip manufacturer based in the Netherlands, with Chinese capital, was nationalized by the Dutch government after pressure from Washington.
At the end of last month, the growing dispute between Washington and Beijing over control of technological supply chains spread to the Netherlands. The Dutch government, under pressure from US officials, took control from the Chinese-owned chipmaker.
The company, which has its headquarters in the Netherlands but belongs to the Chinese Wingtechoperates a complex, global supply chain typical of semiconductor manufacturing.
Nexperia, which designs older type chips used in cars and electronic devices, employs thousands of people in Europe, the United States and Asia. Its factories process silicon wafers in Britain and Germany, and assemble and test chips in China, Philippines and Malaysia.
On September 30, the Dutch government declared that company decisions would 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 the Nexperia would face strict controls in its operations because its owner, was already on the list.
The Dutch government says it acted to prevent Nexperia products from becoming unavailable in an emergency. But documents published in an Amsterdam court on Tuesday showed that months earlier, US officials had pressured the Dutch government over the company’s ownership, the report said.
Nexperia is the latest company to be caught up in the intense war between Washington and Beijing over control of the global chip industry., namely the semiconductor and mineral supply chains — critical elements for everything from automobiles to artificial intelligence systems.
While Chinese chipmakers have struggled to produce the cutting-edge chips that power advanced AI systems, they produce a increasing share of older types of chips.
Some officials in the United States and Europe have expressed concern that China could come to dominate the market for these chips.
Even though they are less advanced, these chips are used in the automotive industry and in a wide range of machinery and household appliances. Many Western governments now want to have these supply chains back under your control.
He Yongqianspokesman for China’s Ministry of Commerce, said at a press conference on Thursday that Washington’s expanded control “seriously undermines security and stability of the global industrial supply chain.”
The nationalization of Nexperia by the Dutch government was “a clear example of how North American policies harm the rights and interests rights of Chinese companies,” said Ms. He.
Recently, Beijing exercised last week your own influence about another part of the global technology supply chain when it announced comprehensive control measures on critical minerals used in chips, automobiles, missiles and various types of electronic devices.
Interestingly, the new rules they looked quite similar to US technology control measures that Chinese officials have long criticized.
The Chinese government has also targeted an industry it considers crucial to its own security and economic growth: maritime transport.
On Tuesday, Beijing imposed sanctions on American subsidiaries of the South Korean shipping company Hanwhaaccusing it of “supporting and assisting” the United States with its shipbuilding industry.
The executive order, which took effect immediately, prohibits Chinese companies and individuals from doing business with these subsidiaries.