The Dutch government has decided to relinquish control of a semiconductor manufacturer in response to major disruptions to the automobile supply chain.
Published November 20, 2025
The Netherlands has announced that it will return control of semiconductor manufacturer Nexperia to its Chinese parent company. This is a step towards resolving the conflict between The Hague and China that has disrupted the auto supply chain.
Dutch Economy Minister Vincent Kallemans said on Wednesday that he had put on hold his order to take effective control of the semiconductor maker following “constructive” discussions with Chinese officials and with European and international partners.
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“We are positive about the steps already taken by the Chinese authorities to secure chip supplies to Europe and the rest of the world,” Kalemans said in a statement.
“We see this as a sign of goodwill. We will continue to have a constructive dialogue with the Chinese authorities.”
China’s Ministry of Commerce welcomed the announcement as a “first step” but called for a complete reversal of the order, saying it was the “root cause” of supply chain disruptions.
He also criticized the “wrong decision” by a Dutch court last month to expel Nexperia’s Chinese chief executive, Zhang Xuezheng, on suspicion of mismanagement.
Jo van Biesebrug, an economics professor at the University of Leuven, said Europe’s efforts to develop a strategy to manage China’s involvement in critical supply chains were “a work in progress.”
“While Nexperia’s actions were caused by specific actions, the main concerns now appear to have been alleviated due to Nexperia’s personnel changes,” Biesebruck told Al Jazeera.
“The Dutch government has made clear how far it intends to go, but China seems to have responded only half-heartedly.”
In late September, the Dutch government took effective control of Nexperia, owned by Jiaxing-based Wingtech, citing a need to secure chip supplies over concerns that Zhang would move manufacturing operations and intellectual property to China.
The move came after the United States warned the Netherlands that the company was likely to be placed on a list of sanctioned companies if it did not replace Mr. Zhang, but Dutch officials have denied acting on pressure from the United States.
The Chinese government denounced the Dutch government’s intervention, which was triggered under Cold War-era access to goods laws, as an act of “unwarranted interference” in business affairs, and in response blocked the export of some Nexperia products manufactured in China.
Japanese carmakers Honda and Nissan were forced to cut production amid resulting supply chain disruptions, while Germany’s Mercedes-Benz said it had taken steps to secure chip supplies in the short term.
Chinese authorities lifted an export ban on Nexperia earlier this month as part of measures agreed under a trade cease-fire agreement announced by U.S. President Donald Trump and Chinese President Xi Jinping in South Korea last month.
