Dutch minister defends Nexperia takeover amid chip supply strains

The Dutch minister who triggered automotive supply chain turmoil by seizing control of chipmaker Nexperia said the intervention had worked and he made a conscious choice not to inform European allies or the U.S. or Chinese governments ahead of time.

Economic Affairs Minister Vincent Karremans faced questions over his handling of Nexperia in a parliamentary debate late on Thursday, with lawmakers questioning his handling of the situation.

"With this order, I prevented Europe from becoming dependent on non-European vendors of essential legacy chips... as far as that goes the goal has been reached," he said.


Karremans took control of Nexperia, a Dutch subsidiary of Chinese firm Wingtech, on September 30, saying the move was needed to prevent Wingtech's founder from moving company secrets and production to China.

On October 4, the Chinese government retaliated by blocking the export of Nexperia's chips, most of which are packaged in China. The result was a supply shock with European carmakers which the intervention had sought to protect bearing the brunt.

Lawmakers questioned whether a less drastic approach or building European support would have been better.

"Everything points to the minister choosing the path of a lone wolf," lawmaker Laurens Dassen, who called for the debate, told Reuters.

Karremans said if word had spread that an intervention was planned, it would have accelerated the company's flight.

"I ask for understanding for the situation that we had little time and that there are risks involved with coordination," he said.

While both the Chinese and Dutch governments have since eased their interventions, the company is now embroiled in an internal battle.

Nexperia's Chinese packaging arm has declared independence and is seeking to replace European wafers with others made in China. The European production arm has halted wafer shipments to China, citing nonpayment. Stockpiles of the company's chips are dwindling and the car industry fears shortages may re-emerge.

Karremans said on Thursday he is focused on resolving those problems.