Semiconductor company Nexperia was seized by the Dutch government last week, angering China. Nexperia, which was sold to a Chinese company in 2018, was retaken after the company's actions were alleged to threaten the continuity and protection of key technological knowledge and capabilities in the Netherlands and Europe.
As a result, Nexperia's parent company has stopped exporting chips to Europe with immediate effect in protest. Although Nexperia produces chips for the automotive industry, the assembly and delivery processes are all carried out from China. This week, Volkswagen and BMW issued statements that vehicle production would be affected if chip supplies continue to be cut.
The huge losses are set to happen, as predicted. Last month, Jaguar Land Rover production was halted for weeks after being the victim of a cyberattack that cost the UK economy £1.9 billion (~RM 10.7 billion).
While China and the Netherlands have still not resolved the issue, Nexperia resumed chip shipments to Europe today, but with strict conditions such as only being able to do so in the Yuan. Meanwhile, the seized Nexperia company is looking for a new chip assembly facility outside China as a long-term solution.
The Dutch Ministry of Economic Affairs said the “extraordinary” intervention was taken by the Dutch government in response to several “deficiencies and serious administrative actions of the company”. The takeover allows the Dutch government to overturn or block management decisions that are considered dangerous.
