Dutch Government Ready to Relinquish Control of Nexperia as China Softens Export Ban

The Dutch government is poised to surrender its control over microchip manufacturer Nexperia, potentially resolving a sweeping parts shortage that has threatened automotive production across Europe and Asia. Sources familiar with ongoing negotiations reveal that Dutch authorities may reverse their earlier decision to seize the China-owned, Nijmegen-headquartered firm within days, signalling a breakthrough in tense discussions with Beijing.

Nexperia plays a critical role in the supply chain for semiconductors used not only in vehicles but also in medical equipment and defence systems. Dutch officials intervened last month, invoking Cold War-era powers, after reports suggested Chinese executives were considering shutting down European operations. In response, Beijing imposed stringent export controls on Nexperia’s Chinese division, halting the dispatch of finished components worldwide and sparking immediate fears of factory stoppages.

Manufacturers swiftly reported the depletion of chip stockpiles and drew attention to the risk of production line disruptions. Carmakers such as Volkswagen and Nissan warned of imminent output cuts if the shortage persisted. Volkswagen cautioned that production could grind to a halt, whilst Nissan confirmed temporary reductions at its key Oppama and Kyushu plants until semiconductor supplies could be restored.

The urgency prompted a fresh approach from Dutch officials, who expressed optimism about an imminent resolution. Economic affairs minister Vincent Karremans said, “Given the constructive nature of our talks with the Chinese authorities, the Netherlands trusts that the supply of chips from China to Europe and the rest of the world will reach Nexperia’s customers over the coming days.”

There are signs that the logjam may already be breaking. Aumovio, a major German automotive supplier, resumed shipments of Nexperia components after receiving an export licence from Beijing. Company chief executive Philipp von Hirschheydt acknowledged that a full return to normal would take time, but indicated that immediate damage to the automotive sector was likely to be averted.

The Dutch government’s move to take over Nexperia followed accusations that Wingtech, the Chinese parent company, deliberately sought to impair the chipmaker’s European operations. Allegations included misuse of financial resources and were accompanied by the suspension of Wingtech founder Zhang Xuezheng as Nexperia chief executive. The intervention effectively gave Dutch authorities veto powers over significant company decisions for up to a year.

As diplomatic engagement continues and production stabilises, resolution of this stand-off may yet avert a wider industrial crisis. The intricate connection between global politics and technological supply chains remains more evident than ever.