Nexperia Caught in Crossfire of U.S.-China Tech Tensions

Dutch chip maker Nexperia faces export restrictions from the U.S. and China, highlighting its challenges amid geopolitical tensions. A subsidiary of China's WingTech, Nexperia is negotiating with both countries, hopeful for U.S. relief. Meanwhile, China has halted component exports, complicating the scenario for the European-based company.

Dutch computer chip manufacturer Nexperia is grappling with export restrictions imposed by both the United States and China. This situation underscores the broader geopolitical and technological rivalry between the two nations.

Nexperia, a subsidiary of China's WingTech, is actively engaged in negotiations with both governments. The company expressed optimism about securing relief from U.S. sanctions while also dealing with newly introduced regulations by the Dutch government, which took control of the firm on September 30. This move was aimed at maintaining Nexperia's technology within Europe, even as Washington expanded its 'entity list' targeting companies requiring export licenses.

The company, known for producing basic chips such as transistors, has a 60-day grace period to adapt to U.S. regulations. Concurrently, the Chinese Chamber of Commerce has prohibited Nexperia and its subcontractors from exporting China-assembled components, though Nexperia remains hopeful for exemptions as negotiations progress.

(With inputs from agencies.)