Several American media outlets reported on October 31, citing sources familiar with the matter, that the United States will announce that the Dutch semiconductor company Nexperia will resume shipments from its factory in China.
According to sources who spoke to Bloomberg, following a trade agreement reached between U.S. President Trump and Chinese Communist Party leader Xi Jinping during their meeting in South Korea, the U.S. is set to announce that Nexperia will resume chip shipments.
The anonymous source, who requested anonymity due to discussing undisclosed matters, stated that the Trump administration is expected to provide detailed information on this move in a briefing on the U.S.-China trade agreement.
The news of the Nexperia agreement was initially reported by The Wall Street Journal.
The Dutch government is concerned that Nexperia’s parent company, China’s Wingtech Technology, will transfer chip manufacturing operations to China, potentially causing Europe to lose one of its major chip manufacturers. Earlier this month, based on the Dutch Trade and Industry Act, the Netherlands required Nexperia and its global affiliated entities to refrain from making adjustments to assets, intellectual property, business, personnel, etc., within a year. The company is owned by the Chinese company Wingtech Technology. Subsequently, China banned the export of products from Nexperia’s Chinese factory.
Nexperia produces a significant amount of low-end semiconductors in the Netherlands, which are widely used in the automotive and consumer electronics sectors. Around 70% of chips produced in the Netherlands are packaged in China and primarily sold to distributors. The basic chips produced by Nexperia are extensively used in automotive electronic systems, controlling various equipment from lighting and airbag systems to car door locks and windows.
Bloomberg reported that the U.S. government will release a briefing outlining the framework for resuming chip shipments, focusing on the terms of the trade agreement reached during the Trump-Xi meeting.
Documents from a Dutch court show that the Dutch government took over Nexperia at a time when pressure on the company increased from the U.S. following Wingtech Technology being added to an export control list.
On September 30, the U.S. entity list expanded to include subsidiaries of Wingtech Technology, meaning Nexperia Semiconductors will face trade restrictions by the end of November. However, Dutch authorities stated that the real reason for the takeover was deficiencies in Nexperia’s governance.
30% of Wingtech Technology’s shares are held by Chinese national and regional governments and affiliated investment funds. The company acquired Nexperia Semiconductors from the Dutch consumer electronics company Philips in 2018.
Following the Trump-Xi meeting on October 30, Beijing agreed to postpone comprehensive controls on rare earth magnets and resume purchasing U.S. soybeans and other agricultural products. In exchange, the U.S. promised to halve the tariffs related to fentanyl imposed on China and temporarily delay implementing the 100% tariffs on Chinese goods that Trump planned to start in November.