Nexperia Chip Crisis Defused? Dutch Minister “Trusts” China To Resume Chip Exports Next Week

There are encouraging signs that the global auto supply-chain chip crunch sparked by the dispute between the Netherlands and China has begun to cool.

Dutch Economy Minister Vincent Karremans said Friday that China is expected to resume chip supplies to Nexperia’s customers in Europe and elsewhere “in the coming days,” signaling a softening of the Netherlands’ stance and raising hopes of a breakthrough deal with China to resolve the months-long dispute surrounding Chinese-owned chipmaker Nexperia. 

“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,” Karremans stated. He was part of the team of Dutch authorities that seized Nexperia’s management early this fall.

Bloomberg reports that the Netherlands is preparing to roll back its ministerial order granting the government authority to block or alter key corporate decisions at Nexperia, provided China resumes exports of its critical chips. The use of this Cold War-era law, which gave the Dutch state control over Nexperia’s operations, prompted Beijing to retaliate by imposing restrictions on the company’s exports from China.

Those Chinese export restrictions sparked automotive chip disruptions:

• Nexperia-Linked Chip Shortages Ripple Through Global Auto Supply Chain, From Germany To Japan

• Chipmaker Nexperia’s China Arm Tells Staff To Ignore Dutch HQ, Deepening Semiconductor Split

This comes as the U.S. and China unveil a trade deal and resolution to the chip dispute:

• White House Unveils Details Of U.S.-China Deal, Including Resolution To Nexperia Auto Chip Crisis

Karremans noted, “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.” 

News of this development sent Nexperia’s Chinese parent Wingtech Technology up nearly 10%, while major European automakers gained in the Friday session.