Minister to talk with China to lift export ban on Nexperia chips

Caretaker economic affairs minister Vincent Karremans says he wants to work with China to find a solution to the Chinese export ban on Nexperia chips, which came into force this week after the Netherlands took control of the company.

The move followed a ruling by judges in Amsterdam that removed Nexperia’s Chinese chief executive, Zhang Xuezheng, from his post.

Karremans said he hopes consultations with Beijing will lead to the ban being lifted. The chips are crucial components for car manufacturers worldwide, and a global shortage could emerge within weeks if exports from China remain blocked.

The Dutch government intervened in Nexperia under a national security law that allows the economic affairs ministry to block or reverse company decisions in exceptional cases. Karremans said the measure was taken to safeguard chip supplies for the Dutch and European industries.

Nexperia, based in Nijmegen, was taken over in 2019 by Chinese electronics firm Wingtech. It has a major production site in China, which makes around 50 billion chips a year. The export ban means those chips can no longer leave the country.

China claims the Netherlands acted under pressure from the United States, but Karremans rejected that accusation. “They are mixing things up,” he said. “It is absolutely not the case that we acted under American pressure or in coordination with the US. This was my own decision.”

Court documents show, however, that the US had contacted the Dutch foreign ministry to express concern about Zhang’s position at Nexperia.

Carmakers around the world have warned of major disruptions if Nexperia’s exports remain blocked. The US-based Alliance for Automotive Innovation told Reuters that production lines could be affected as soon as next month.

“If the supply of automotive chips does not resume quickly, car production in the United States and many other countries will be disrupted,” the group said.

Karremans said he is in discussions with both Nexperia and Chinese authorities, emphasising the global importance of restoring chip supplies. “We must first ensure that Nexperia can get out of this situation, in the interests of the American, Dutch, European and also Chinese economies,” he said.