AMSTERDAM (Reuters) -The Netherlands is in talks with China over export controls imposed on the Chinese-owned chipmaker Nexperia, which has become tangled up in the trade frictions between the U.S. and China.
The Dutch government stepped in on September 30 to take control of Nexperia, which makes chips for carmakers and for consumer electronics, citing worries about the possible transfer of technology to Nexperia’s Chinese parent company, Wingtech.
The Chinese commerce ministry then issued an export control notice on October 4 prohibiting Nexperia China and its subcontractors from exporting specific finished components and sub-assemblies manufactured in China.
“The situation regarding the Nexperia facilities in China, where export control measures have been applied, naturally has our full attention,” the Dutch economy ministry said in a statement on Friday.
“We are in discussions about resolving this matter with the Chinese authorities, as well as other relevant European governments and businesses.”
Major automakers have said the chip disruption stemming from the dispute between China and the Dutch government could quickly impact production, as Nexperia’s chips are needed for the production of parts and vehicles.
Nexperia is one of the largest makers globally of basic chips such as transistors that are not technically sophisticated but are needed in large volumes.
Its biggest manufacturing site is in Hamburg, Germany, but most of its chips are packaged and assembled into larger products in China.
(Reporting by Bart Meijer and Toby Sterling; Editing by Hugh Lawson and Jane Merriman)
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