The Dutch government has suspended an intervention at Nexperia, which allowed the government to block risky decisions at the Nijmegen-based chipmaker. Caretaker Minister of Economic Affairs, Vincent Karremans, had implemented a never-before-used law from the 1950s at the end of September to freeze the company’s operations. Minister Karremans stated that, in light of recent developments, he has decided to suspend his order under the Goods Availability Act (GAA) regarding Nexperia following consultations with European and international partners. He pointed out that he has had meetings with Chinese authorities in the past few days and is satisfied with the steps they are taking to ensure the supply of chips to Europe and the rest of the global market. Karremans also said he views the measures the Chinese are taking as a sign of goodwill and promises to maintain constructive dialogue with the Chinese authorities in the coming weeks. He emphasized that Nexperia can now continue with its operations without further government interruption. The government’s concerns stemmed from actions taken by the now-suspended CEO, which involved suspicious transfers of funds, product assets, knowledge, and technology to a foreign entity. In new developments, Nexperia states that it has also suspended the transfer of wafers to its subsidiary in China , following the local unit’s alleged refusal to pay. The update adds to a governance crisis at Nexperia. Karremans denies government involvement in CEO suspension Minister Vincent Karremans denied allegations that the Dutch government had a hand in the CEO’s suspension. He explained that individual members of Nexperia itself initiated inquiry proceedings before the Enterprise Chamber of the Amsterdam Court of Appeal. Karremans also asserted that the government has not decided, nor is it responsible for the placement of the shares under management. He added that this is a regular practice under Dutch commercial law and is entirely separate from the GAA order. The Minister also mentioned that the Enterprise Chamber of the Amsterdam Court of Appeal, based on its independent assessment, has suspended one of the company’s directors under the articles of association. A temporary non-executive director with decisive authority has been appointed for the duration of the inquiry proceedings. The company’s shares, except one, were also transferred to a trustee appointed by the Division. “This underscores the fact that, in the court’s independent judgment, there is sufficient reason to doubt proper governance and proper business conduct at Nexperia.” – Vincent Karremans , Caretaker Minister of Economic Affairs Karremans also clarified that the order only targets Nexperia and no other companies, the broader industry, or countries. The decision aims to prevent a situation in which the company’s production capabilities would not be available in Europe in the event of an emergency. In addition to chips, Nexperia produces components used in European consumer electronics and the auto industry. China imposes company-specific export control on local Nexperia locations The Chinese government has allegedly imposed company-specific export control measures across all Nexperia locations in China. However, Karremans asserted that the Netherlands has been engaged in constructive negotiations with China to find a mutually beneficial solution. The Dutch government believes it is essential to maintain the independence of the proceedings before the Enterprise Chamber of the Amsterdam Court of Appeal from any interference. It has also taken note of the recent Deal on Economic and Trade Relations between the U.S. and China. Particularly, it is more interested in China’s commitment to resume operations at local Nexperia’s facilities, allowing the global flow of critical legacy chips. Meanwhile, the Netherlands (together with international and European partners) has disclosed that it is closely supporting and monitoring these recent developments. The EU and the Netherlands have prioritized strengthening the European semiconductor sector. On the other hand, Karremans claims that the growth and continuity of Nexperia are key to reducing high-risk European and national strategic dependencies. He also mentioned that a previous phone call with the Chinese Minister of Commerce, Wang Wentao, had discussed further steps toward reaching a solution that serves the interests of the Chinese and European economies, as well as Nexperia. Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.
