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Netherlands halts Nexperia takeover in gesture to China: minister / Photo: JOHN THYS - AFP
NYSE - LSE
Netherlands halts Nexperia takeover in gesture to China: minister
The Netherlands has suspended its proposed takeover of Chinese-owned chip maker Nexperia in a sign of "good will" towards Beijing, Dutch Economy Minister Vincent Karremans said Wednesday.
The dispute erupted in September when the Dutch government effectively took control of Nexperia, which is based in the Netherlands but whose parent company is China's Wingtech.
China responded by banning re-exports of the firm's chips, triggering warnings from automakers of production problems as the components are critical to onboard electronics.
But Beijing announced over the weekend it would exempt some chips from the export ban, reportedly part of a trade deal agreed by President Xi Jinping and his US counterpart Donald Trump.
On Wednesday, Karremans said that "in light of recent developments, I consider it the right moment to take a constructive step by suspending my order under the Goods Availability Act regarding Nexperia".
"We are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world," he said.
The takeover has been suspended rather than cancelled, and the minister can reinstate the measure later.
- National security -
Karremans said the decision had been made "in close consultation with our European and international partners" and in the wake of "constructive meetings with the Chinese authorities".
"We see this as a show of good will. We will continue to engage in constructive dialogue with the Chinese authorities in the period ahead," he said.
The Netherlands cited national security concerns and poor management when it moved to take control of Nexperia, which was once part of Dutch electronics giant Philips but bought out by Wingtech in 2018.
The Nexperia case was the first time the Dutch had invoked the Goods Availability Act, with the stated reason being that poor management could jeopardise the chip supply chain in Europe.
An Amsterdam corporate court subsequently ordered the suspension of Nexperia's chief executive Zhang Xuezheng, citing poor leadership and poor preparation for incoming US trade restrictions.
Nexperia is no stranger to regulatory concerns in the west.
Three years ago, Britain blocked the company from buying its main semiconductor manufacturer, Newport Wafer Fab, following a "detailed national security assessment".
And the United States put Wingtech on one of its "entity lists" last December, meaning the government believed it was acting against US national security and foreign policy interests.
E.Accardi--INP
