China to Resume Nexperia Chip Exports, Dutch Leader Says
Move Signals Potential Breakthrough in Clash That Risked Disrupting Global Auto Production
[Stay on top of transportation news: .]
Dutch Prime Minister Dick Schoof said China has agreed to resume deliveries of Nexperia chips from plants in the country, signaling a potential breakthrough in a clash that risked disrupting global auto production.
“We were informed by China that they will enable the resumption of supplies from Chinese factories from Nexperia,” Schoof said in an interview Friday on the sidelines of a climate summit in Belem, Brazil.
A resumption could set the stage for the Netherlands to relinquish government control it imposed over Dutch-based Nexperia, which is owned by Wingtech Technology Co. China retaliated by imposing export restrictions over components from Nexperia’s Chinese facility, which accounted for about half of its pre-crisis volumes.
RELATED: Europe's Auto Industry Braces for Chip Interference Soon
Economic Affairs Minister Vincent Karremans sparked the dispute in late September by invoking a Cold War-era law to gain powers over decisions at Nexperia. The Dutch government was preparing tosuspendthe measure as soon as next week if exports from Nexperia’s Chinese affiliate resumed, Bloomberg reported earlier Nov. 7.
Pressure was mounting on the Netherlands to resolve the crisis as automakers like Volkswagen AG warned about the impact of a global chip shortage. Honda Motor Co.slashedits annual profit guidance after halting production at some plants.
Schoof commented after meeting with German Chancellor Friedrich Merz in Brazil.
“That’s also good news for the German car factories,” he said. “We don’t know yet the speed with which they will deliver, but I think it’s an important message, and the chancellor of course liked the message because it’s important for Germany.”
Concern about China’s control over Nexperia date back longer, and the dispute raises questions over the company’s future role as an automotive supplier after manufacturers were forced to scramble to keep assembly lines running.
Resolving the bottleneck was achieved by cooperation between the Netherlands, Germany and the European Commission, as well as recent talks between Dutch and Chinese government officials Nov. 6, Schoof said.
He also credited the recent meeting between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, which signaled in a detente in U.S.-Chinese trade conflicts.
“So it all came together,” Schoof said.
To justify the intervention, the Netherlands cited concern that Wingtech was hobbling the chipmaker and threatening the supply of vital components, pointing to actions by Wingtech founder Zhang Xuezheng that allegedly represented a “misuse of financial resources for the CEO’s self-enrichment as well as his other companies in China.”
Cox Automotive's Matt Trapp and Alex Fraser discuss how advanced technologies are shaping the future of maintenance.Tune in above or by going to .
Wingtech denied those claims and demanded that Zhang be reinstated as Nexperia’s CEO after he was suspended by an Amsterdam court Oct. 7 following a petition by management.
Schoof said “the procedure against the CEO is still in place,” though that wasn’t the focus of the effort to resume deliveries.
“But we agreed that this is something else which we will have to discuss,” he added. “This was not about the CEO.”
Wingtech has demanded the CEO’s reinstatement to resolve the dispute, which also triggered a feud between Nexperia’s headquarters and its Chinese operations over financing and control.
Merz earlier suggested a resolution was imminent.
“There are positive signals that the deliveries can resume,” he said in Belem. “This can already happen within the next hours.”
Want more news? Listen to today's daily briefing belowor go here for more info:
