Netherlands seizes control of Nexperia as China blocks exports

The Dutch government seized control of chipmaker Nexperia at the end of September and removed its Chinese chief executive, prompting Beijing to block exports from the company’s Chinese plant and raising immediate concerns about disruptions to the global supply chain for automotive and consumer electronics industries. The dispute drew the first public ministerial-level phone call between the two countries this month as officials sought to defuse commercial and security tensions.

The Netherlands said it invoked emergency powers on September 30 and took over Nexperia’s management, citing national security and governance shortcomings. The company is majority owned by China’s Wingtech Technology and is a major supplier of so-called mature chips used in cars and electronics. Dutch officials said they feared decisions by the Chinese parent could lead to moving significant production out of Europe. Former Nexperia executives have said Wingtech has built a factory in China capable of taking over some output from European facilities.

China’s commerce ministry responded on October 4 by barring Nexperia’s Chinese unit from exporting many of its products. The ministry said in a statement...