Dutch media: "Great powers should be rational. In Nexperia's 14.7 billion yuan revenue in 2024, the Dongguan factory contributed 11.8 billion yuan, but the countermeasures are too harsh for the Netherlands."
Nexperia, the semiconductor company, was originally part of Philips' semiconductor division and was fully acquired by China's Yiwu Electronics Group for 1.9 billion euros in 2019. At that time, Yiwu was a mainland company. After the acquisition, Nexperia quickly expanded, especially its Dongguan factory. Dongguan is an electronics manufacturing hub, and Nexperia moved most of its packaging and testing capacity there. In 2024, it directly accounted for 70% of global packaging capacity. As a result, the company's overall revenue jumped from 8.1 billion yuan in 2019 to 14.7 billion yuan, with a net profit of 2.297 billion yuan. It ranks third in power discrete devices globally and second in automotive-grade PowerMOSFET market share. This performance is all thanks to the Chinese market. The Dongguan factory not only has high output but also shipped 110 billion chips, accounting for 20% of the mature chip market, and is first in small signal diodes globally. Originally, the Netherlands hoped for some peace, but now they're stuck with this big tree.
Where is the problem? The Dutch government believes that Nexperia, being controlled by Chinese capital, poses a national security risk. In October 2025, the Netherlands intervened directly, seizing control under the pretext of governance issues. This move was sudden, with the background of the EU and the US jointly controlling high-tech exports, especially ASML's lithography machines. ASML, a Dutch giant, had 41% of its global revenue from the Chinese market in 2024, and its DUV product line relied entirely on Chinese orders. However, the Dutch government listened to Washington and restricted ASML's exports to China, causing ASML itself to complain. Naturally, China would not accept it. On October 4th, the Ministry of Commerce took action against Nexperia's Chinese subsidiary, prohibiting the Dongguan factory from exporting chips and sub-assemblies. Nexperia's Dutch headquarters responded faster, stopping the supply of wafers to Dongguan on October 26th, causing the Dongguan factory to reduce production. Nexperia China announced on November 2nd that the Netherlands owed the Dongguan factory 1 billion yuan in payments and told employees not to follow the headquarters' instructions. This caused a complete breakdown between the two sides.
The Netherlands originally thought China would slowly negotiate and drag it to the International Court of Justice in The Hague. But Beijing didn't have the time, directly cutting off the throat. Once the export control was implemented, Nexperia's global supply chain lost its leg. European automotive industry was hit first, German automakers reduced production, and the shortage of chips directly affected the production lines. In China, Nexperia's revenue is nearly half from Dongguan, and in 2024, its automotive-grade chip shipments accounted for 15% of the global market. Without these, the Dutch headquarters became a shell. The Dutch media, 'Financial Daily', calculated, 14.7 billion yuan came from Dongguan, 11.8 billion yuan, and after separation, the company was left with just a framework, and operating costs tripled. Isn't this self-inflicted suffering? Not to mention ASML, which already relied on 40% of its income from China, now with tighter export controls, orders flew away, and stock prices plummeted. The Dutch Ministry of Economic Affairs launched an emergency response, with cross-departmental teams meeting daily to redraw the supply chain, but finding alternative suppliers isn't easy. There is a factory in Brazil, but its capacity can't match Dongguan.
This operation exposed the true face of geopolitics in the chip chain. Global semiconductor division is clear, the US controls the high-end, the Netherlands manages lithography, and China controls assembly and testing. Nexperia's case is a typical example. The Netherlands wants to protect its domestic interests but ignores the fact that the company has risen after the Chinese capital acquisition. Before the acquisition, Nexperia was struggling, but after the acquisition, its capacity exploded and profits soared. Now the Netherlands is seizing control, equivalent to stealing its own child's meal. European automakers are furious, the supply chain is broken, and the risk of production stoppage is high. Giants like Volkswagen and BMW rely on Nexperia for 20% of their chips, and now they have to beg everywhere for alternatives. On the Chinese side, Nexperia China is turning to the domestic market, adjusting orders at the Dongguan factory, and employee stock ownership plans continue. The 2025 net profit target is a 20% growth.
The Dutch media's point about "countermeasures being too strong" has some truth, but it also depends on context. In great power games, it's always back-and-forth. The Netherlands acted first, restricting ASML's exports, affecting China's progress in semiconductors. China retaliated against Nexperia, accurately hitting the Netherlands' pain points. The Ministry of Commerce statement clearly said: "Whoever disrupts the supply chain, is responsible." This is straightforward and not empty talk. The world watches, the US is happy, and there are cracks within the EU. France and Germany complained about the Netherlands' selfishness, and the chip shortage affects the entire European automotive chain. Nexperia's management stated that they are confident in breaking through the domestic supply chain, with a 110% net profit growth target by 2027. This is not boasting; the Dongguan ecosystem is complete, and three listed companies as agents have responded, saying the impact is limited and continue to supply.
In short, this farce exposed the shortsightedness of Western regulatory policies. Nexperia's rise from acquisition to peak was all due to Sino-Dutch cooperation. Now tearing it apart, it's like inflicting injury on oneself. The title of the Dutch media points out the essence: "Be rational, don't clash hard." The global supply chain should be mutually beneficial, but now it has become a geopolitical pawn. What's next, no one knows. But China's steps towards self-reliance in semiconductors are steady, and the Netherlands needs to think carefully about its next move.
Original: www.toutiao.com/article/1848025904007168/
Statement: This article represents the views of the author.