File photo: VCG

The recent actions of the Dutch government regarding Nexperia have sparked significant attention and raised concerns about the stability of the global semiconductor supply chain. 

A spokesperson for Chinese tech company Wingtech, the parent company of Nexperia, stated that the actions of the Dutch government appear to be aimed at allowing a new Dutch-owned company to take over Nexperia, but any successor company is doomed to fail, as customers simply won't follow the new company, the Financial Times reported on Tuesday.

At the official level, Chinese Minister of Commerce Wang Wentao had a phone call with Dutch Minister for Economic Affairs Vincent Karremans at the latter's request on October 21, as the two sides exchanged views on issues including Nexperia, according to the official website of the Chinese Ministry of Commerce (MOFCOM).

The relevant measures taken by the Dutch side targeting Nexperia have severely impacted the stability of global industrial and supply chains. China urges the Netherlands to properly resolve Nexperia issues, protect the legitimate rights and interests of Chinese investors, and foster a fair, transparent and predictable business environment, Wang noted.

The semiconductor industry has been built on long-established supply chain stability and technological collaboration. The Dutch government's administrative intervention disrupts not only the operation of a single company but also the trust and collaborative foundations built over time across the entire industrial chain. Under such circumstances, it has become essential for the Dutch government to correct its mistakes.

In a statement published on its official website on October 13, Wingtech reported that Nexperia's gross margin rose from 25 percent in 2020 to 42.4 percent in 2022, and that by October 2024 it had cleared all pre-existing debt, achieving zero debt. Also, over the past five years, Nexperia has contributed 130 million euros ($151 million) in corporate income tax to the Netherlands, making a significant contribution to the local economy.

In this context, the Dutch government's intervention in a company that has operated transparently in the Netherlands for years under the pretext of "national security" is essentially a case of overreaching driven by geopolitical biases rather than a fact-based risk assessment. This action has set a dangerous precedent that seriously violates the market economy principles, fair competition norms, and international economic and trade rules that the EU has always advocated.

From an industry perspective, the consequences of the Dutch government's actions on the supply chain are growing day by day. While most of Nexperia's chips are produced in Europe, about 70 percent are packaged in China before distribution, according to Reuters. Nexperia's technologies in the chip sector are not advanced, and its chips are used in a wide range of applications, supplying carmakers such as Volvo, VW and Nissan. It is no exaggeration to say that the Dutch government's move has triggered a massive disruption to the European industrial chain.

"The situation could lead to considerable production restrictions in the near future, and possibly even to production stoppages if the interruption in the supply of Nexperia chips cannot be rectified in the short term," Hildegard Mueller, president of German Association of the Automotive Industry (VDA), said in a statement, according to Reuters.

Faced with such severe consequences, the Dutch government needs to recognize the development laws of the semiconductor industry, and immediately take practical steps to correct its mistakes. Any delay or evasion in addressing this issue will have far-reaching consequences, weakening the international community's confidence in Europe's market environment.

China has maintained a firm and clear stance on the Nexperia issue. He Yongqian, spokesperson for the MOFCOM, said on October 16 that China firmly opposes the Dutch side's overstretching of the national security concept and direct intervention in the company's internal affairs. The Dutch move has violated the spirit of contract and market principles, which will ultimately backfire and damage the Netherlands' own business environment. China will take necessary measures to resolutely safeguard the lawful rights and interests of Chinese enterprises, the spokesperson added.

Whether in protecting the legitimate rights and interests of Chinese enterprises or safeguarding the stability of global industrial and supply chains, China's stance is a necessary course of action rooted in a profound understanding of the principles governing the international commercial order and the collaborative logic of the global technology industry. No party should underestimate China's unwavering resolve and full capacity to defend its own interests.