Nexperia fallout: Dutch-Chinese chip debacle reignites EU debate over foreign investments
In aftermath of Netherlands’ controversial seizure, scrutiny looms over Chinese acquisitions, US influence and EU’s ability to balance security with open markets
The saga of Netherlands-based and Chinese-owned chipmaker Nexperia, caught up in broader geopolitical tensions between the United States and China, is rekindling a debate about foreign investment in Europe and is likely to lead to further scrutiny by EU countries on future Chinese investments in the bloc, according to analysts.
After The Hague seized control of Nexperia from its Chinese owners on September 30, citing national security concerns and invoking a law that had been sitting idle since 1952, Beijing responded by imposing export controls on Nexperia chips finished in Chinese facilities.
However, in Europe, the dispute has sparked a rethink of how to handle foreign investment, especially from China, as the risk of collateral damage has become more pronounced amid US pressure to wrest back control while China maintains a firm grip on key supply chains, analysts say.
Nexperia, a major supplier of legacy chips for automotive and industrial users, was acquired by China’s Wingtech Technology in 2019 – a deal that set a record for China’s overseas semiconductor acquisitions and transformed Wingtech from a low-end electronics producer into a global semiconductor player, according to Laila Khawaja, an analyst at Gavekal Research.