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Dutch government suspends intervention into chipmaker Nexperia - BBC

Lau Chi Fung

— 2 min read

Dutch Government Suspends Intervention at Nexperia Chipmaker Following Talks with China

In a surprising turn of events, the Dutch government has suspended its intervention at Nexperia, a Chinese-owned chipmaker based in the Netherlands. This decision comes after a series of talks between the Dutch authorities and their Chinese counterparts.

Background: Nexperia's Acquisition by Midea Group

Nexperia is a leading manufacturer of semiconductors, which are critical components in modern electronics devices. The company was founded in 1959 and has since grown to become one of the world's largest semiconductor manufacturers. In 2020, China's Midea Group acquired Nexperia for €1 billion, sparking concerns about the potential national security implications of a Chinese-owned chipmaker operating in the Netherlands.

Dutch Government's Intervention

In September 2022, the Dutch government launched an investigation into Nexperia's acquisition by Midea Group. The investigation aimed to determine whether the deal posed a threat to national security and whether it was in line with the Netherlands' interests.

Following the investigation, the Dutch government announced plans to intervene at Nexperia, citing concerns about the company's ties to China and potential risks to national security. This move was seen as a significant escalation of tensions between the Netherlands and China.

Suspension of Intervention

However, in a surprise move, the Dutch government has suspended its intervention at Nexperia following talks with China. According to sources close to the matter, the Chinese government had offered concessions to address the Netherlands' concerns about national security.

The Dutch authorities have declined to comment on the specifics of the agreement reached with China, but it is understood that the suspension of intervention is a temporary measure aimed at allowing both parties to engage in further dialogue.

Implications

The suspension of intervention at Nexperia has significant implications for both the Netherlands and China. On one hand, it suggests that the Dutch government is willing to work with China to address concerns about national security, potentially paving the way for more cooperation between the two countries.

On the other hand, the decision may be seen as a victory for China's diplomatic efforts in the Netherlands. The Chinese government has been working hard to promote its interests in Europe and strengthen ties with European countries.

What's Next?

The suspension of intervention at Nexperia is only the beginning of this story. As both parties engage in further dialogue, it remains to be seen whether the agreement reached will lead to a more permanent resolution or simply a temporary reprieve.

One thing is certain, however: the Dutch government's decision to suspend its intervention at Nexperia sends a clear message about its willingness to engage with China on issues related to national security. This move may have significant implications for the global chip industry and beyond.

Key Takeaways

  • The Dutch government has suspended its intervention at Nexperia, a Chinese-owned chipmaker based in the Netherlands.
  • The decision comes after talks between the Dutch authorities and their Chinese counterparts.
  • The suspension of intervention is a temporary measure aimed at allowing further dialogue between both parties.

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