China Slams Netherlands Over Chip Supply Dispute, Threatening Global Semiconductor Industry
Tensions between China and the Netherlands escalated on Tuesday as Beijing strongly criticized Amsterdam for seizing chipmaker Nexperia, citing it as a major obstacle in resolving a technology transfer dispute that's crippling car sector supply chains.
The Chinese commerce ministry stated that the Dutch government should "stop interfering" in Nexperia's internal affairs, warning that its unilateral actions would only worsen the impact on global semiconductor supplies. This statement contradicts previous messages from Beijing, Brussels, and Nexperia indicating progress towards a solution to the issue.
In September, the Dutch government took control of Nexperia, citing concerns over Wingtech, the Chinese owner, planning to shift production to China, posing a threat to European economic security. However, China responded by cutting off exports of finished chips from Nexperia, which are mainly packaged in China.
European carmakers and suppliers have scrambled to secure chip supplies from Nexperia, with some seeking alternative sources or applying for exemptions to import chips from China. Companies like Jeep and Stellantis have expressed concerns over the supply chain disruptions, highlighting Europe's vulnerability compared to rival markets in China.
Industry leaders are calling for a swift resolution, with Mercedes-Benz CEO Ola Kaellenius stating that there's an understanding emerging between China, Europe, and the US, which could lead to a more stable semiconductor supply chain.
Tensions between China and the Netherlands escalated on Tuesday as Beijing strongly criticized Amsterdam for seizing chipmaker Nexperia, citing it as a major obstacle in resolving a technology transfer dispute that's crippling car sector supply chains.
The Chinese commerce ministry stated that the Dutch government should "stop interfering" in Nexperia's internal affairs, warning that its unilateral actions would only worsen the impact on global semiconductor supplies. This statement contradicts previous messages from Beijing, Brussels, and Nexperia indicating progress towards a solution to the issue.
In September, the Dutch government took control of Nexperia, citing concerns over Wingtech, the Chinese owner, planning to shift production to China, posing a threat to European economic security. However, China responded by cutting off exports of finished chips from Nexperia, which are mainly packaged in China.
European carmakers and suppliers have scrambled to secure chip supplies from Nexperia, with some seeking alternative sources or applying for exemptions to import chips from China. Companies like Jeep and Stellantis have expressed concerns over the supply chain disruptions, highlighting Europe's vulnerability compared to rival markets in China.
Industry leaders are calling for a swift resolution, with Mercedes-Benz CEO Ola Kaellenius stating that there's an understanding emerging between China, Europe, and the US, which could lead to a more stable semiconductor supply chain.