Diplomatic Tensions Rise Over Dutch Chipmaker Nexperia

Tensions escalate as the Netherlands seizes control of chipmaker Nexperia, sparking a response from China. Economy Minister Vincent Karremans seeks a diplomatic resolution with China's Minister of Commerce. Nexperia, a Wingtech subsidiary, asserts independence amid the ongoing dispute, causing concern for European carmakers dependent on its chips.

The economic tension between the Netherlands and China escalated when the Dutch government seized control of computer chip maker Nexperia BV. This move provoked a reaction from China, a key player in Nexperia's chip packaging and sales, which immediately blocked exports of such critical components, causing alarm among European car manufacturers.

In a bid to resolve the growing impasse, Dutch Economy Minister Vincent Karremans held talks with his Chinese counterpart, Minister of Commerce Wang Wentao. Discussions centered around finding a mutually beneficial solution that aligns with the economic interests of both China and Europe.

Amid these diplomatic efforts, Nexperia, a subsidiary of Shanghai-listed Wingtech, has begun asserting its independence. The chip-maker has informed its workforce in China that they can choose to disregard external directives, potentially marking a shift in its operational stance during the ongoing territorial dispute.

(With inputs from agencies.)