Chip Conflict: China and Netherlands Clash Over Semiconductors

Tensions rise as China urges the Netherlands to resolve issues impacting the global semiconductor supply chain. The clash follows the Dutch government's control over Nexperia, a subsidiary of Chinese firm Wingtech. Retaliation occurred as Beijing restricted Nexperia chip exports, escalating international semiconductor disputes.

The stakes are escalating in the global semiconductor arena as China calls on the Netherlands to address issues disrupting the stability of chip production and supply chains. In a firm statement, China's commerce ministry criticized the Netherlands' lack of action, highlighting concerns over global security.

Last September, the Dutch government seized control of Nexperia, citing fears that secrets and production could be shifted to China. The move triggered a sharp response from Beijing, which retaliated by suspending chip exports from Nexperia, a significant portion of whose operations are based in China.

Against this backdrop, conversations have begun between Wingtech, Nexperia's parent company, and court-appointed custodians overseeing the Dutch chipmaker. Despite the diplomatic strain, Dutch Economic Affairs Minister Vincent Karremans staunchly backs his intervention, sparking wider industry concerns about the ramifications of such geopolitical tensions.

(With inputs from agencies.)