Background on Nexperia and Wingtech Technology
Nexperia, a Netherlands-based manufacturer of microprocessors, is now part of Wingtech Technology, a significant Asian conglomerate. This company produces essential microchips used in the European automotive industry and consumer electronics. Nexperia was acquired by Wingtech Technology in October 2018.
China’s Export Ban and Netherlands’ Intervention
In October 2021, the Dutch government invoked a rarely used law called the Availability of Goods Act to address operational issues at Nexperia that threatened strategic technological capabilities. The Dutch government was concerned about potential risks to their economic security and European partnerships if Nexperia lost these critical skills.
As a result, the Dutch government gained the authority to block or revoke Nexperia’s decisions deemed harmful to the company’s interests, its future as a Dutch and European entity, or crucial supply chain preservation for the continent.
US Pressure and China’s Response
The US pressured Nexperia to replace its CEO, Zhang Xuezheng. If not, Nexperia would have been added to a “black list.” Wingtech Technology, partially owned by the Chinese state since 2024, faced similar suspicions from Washington regarding its autonomy from the parent company.
In response to these pressures, China imposed an export ban on Nexperia products from China and urged the Netherlands to rectify what it deemed “inappropriate” behavior.
Lifting of Export Ban
Following the Dutch government’s decision to relinquish control over Nexperia, China authorized its Chinese division—which is a subsidiary of Wingtech Technology—to resume microchip exports. This move provides relief for the global automotive sector, which heavily relies on Nexperia’s microchips.
Aumovio CEO Philipp von Hirschheydt confirmed acquiring Nexperia products after China lifted the export ban. The Chinese unit of Nexperia declared independence from its parent company and urged employees to disregard European guidelines.
Impact on the Global Automotive Industry
The lifting of China’s export ban on Nexperia chips is a significant development for the global automotive industry, which has been grappling with chip shortages. This situation has led to production delays and increased vehicle prices worldwide.
With Nexperia resuming chip exports, the automotive sector may see some relief from supply chain constraints. However, it’s essential to recognize that the industry still faces challenges in managing ongoing disruptions and securing long-term chip supplies.
Key Questions and Answers
- What is Nexperia? Nexperia is a Netherlands-based manufacturer of microprocessors, producing chips used in the European automotive industry and consumer electronics.
- Who owns Nexperia? Nexperia is owned by Wingtech Technology, a significant Asian conglomerate.
- Why did the Netherlands intervene in Nexperia’s operations? The Dutch government invoked a rarely used law to address operational issues at Nexperia that threatened strategic technological capabilities, concerned about potential risks to their economic security and European partnerships.
- What was the US pressure on Nexperia regarding? The US pressured Nexperia to replace its CEO, Zhang Xuezheng. If not, Nexperia would have been added to a “black list.”
- How did China respond to the situation? China imposed an export ban on Nexperia products from China and urged the Netherlands to rectify what it deemed “inappropriate” behavior.
- What is the significance of lifting China’s export ban on Nexperia chips? The lifting of the ban provides relief for the global automotive sector, which has been dealing with chip shortages causing production delays and increased vehicle prices.
