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The European Commission says a “worst-case scenario” has been averted after China’s commerce ministry engaged with European companies in recent days to restart the flow of semiconductors that had been disrupted by a crisis surrounding the company Nexperia.
The saga, which saw the Dutch-headquartered company cut off from its Chinese processing facilities following a dispute between The Hague and Beijing, threatened to throw Europe’s automotive industry into disarray.

Dutch authorities ousted the Chinese-owned company’s management on September 30, claiming that they had become aware of plans to move production of one of Europe’s premier chipmaking facilities to China.

Unsealed Dutch court documents showed that the US government had threatened to add Nexperia’s Netherlands subsidiary to a blacklist on October 1 unless the Chinese management was removed, prompting rampant speculation as to how much pressure from Washington informed The Hague’s unprecedented intervention.

In response, Beijing put restrictions on what Nexperia products could be shipped out of the country, where 70 per cent of the company’s chips – vital to car manufacturing – are processed and tested, sending panic through European industry.

Behind the Nexperia crisis and China-Netherlands tech tensions | China Future Tech webinar

Behind the Nexperia crisis and China-Netherlands tech tensions | China Future Tech webinar

Nexperia supplies chips to nearly every major European carmaker, producing tens of billions annually.



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