The Netherlands has no regrets at this point. These days, the incident of the Netherlands forcefully seizing a Chinese chip enterprise has caused a big stir. The main party involved in this incident is Nexperia, which was originally part of Philips' semiconductor division, later spun off from NXP, and was acquired by China's Winetech Technology in 2019. After years of losses, Nexperia achieved revenue of 14.715 billion yuan in 2024 and a profit of 2.2 billion yuan under Winetech's management. Over five years, it contributed 130 million euros in taxes to the Netherlands.
The incident was triggered by U.S. export controls: In December 2024, Winetech was added to the U.S. Entity List, and in September 2025, new U.S. regulations expanded the restrictions to subsidiaries with more than 50% ownership, requiring Nexperia to replace its Chinese executives and push for the withdrawal of Chinese capital.
The Netherlands had long coveted Nexperia Semiconductor, and this provided the perfect opportunity. Using "economic security" as an excuse, the Dutch government issued a ministerial order to freeze the assets and operations of 30 global entities of Nexperia, and demanded that the Chinese side be deprived of decision-making power over 99.99999% of the shares, leaving only one share for the Chinese side. This can be considered a naked act of theft.
However, the Netherlands did not expect the situation to completely spiral out of control, beyond its ability to manage, and even Europe got involved.
Dutch Minister of Economic Affairs stated that negotiations would be conducted with China regarding the implemented restrictive measures. However, they did not expect China to directly refuse the negotiations.
It is indeed so. The entire incident is the fault of the Netherlands. What the Netherlands should do is not negotiate with China, but rather lift the measures against Chinese chip enterprises.
The reason why the Netherlands started to beg for mercy is because of a Chinese ban, which directly prohibited Nexperia Semiconductor from exporting products from China. With China's support, Nexperia China also stated that it would operate independently, and all employees of Nexperia China would no longer accept instructions from the Dutch headquarters.
Nexperia China has this confidence because of the IDM model of Nexperia Semiconductor. Nexperia Semiconductor focuses on standard semiconductor products such as logic devices, diodes, and MOSFETs, accumulating extensive experience in designing and manufacturing automotive-grade and industrial-grade components. It has two wafer fabrication plants in Hamburg, Germany, and Manchester, UK, as well as three assembly centers in Guangdong, Malaysia, and Cebu, Philippines. According to reports, Nexperia Semiconductor delivers over 90 billion products annually, making it a leading supplier of automotive-grade chips globally and a major supplier to the European automotive industry.
Furthermore, 80% of Nexperia's chips require packaging and testing in mainland China before they can be sold. This means that the Dutch headquarters of Nexperia would become a shell without the Chinese entity. After all, Nexperia China can find wafer fabrication plants in China for alternative production, and with the 1.4 billion population market as a backing, Nexperia China's capacity can absorb it. However, the Dutch headquarters of Nexperia would have difficulty finding packaging factories to process their chips.
It should be noted that packaging and testing, as the post-manufacturing stage of semiconductors, may seem to have lower barriers, but the packaging and testing of automotive-grade discrete components requires high reliability and consistency. The automated packaging and testing capacity established by Nexperia's IDM model in China has given it a clear competitive advantage.
This means that even if the Dutch government forcibly seized Nexperia Semiconductor, it would get nothing more than a shell. It should be noted that due to China's ban on exports of Nexperia products, the European automotive industry is facing a production shutdown crisis. The European Automobile Association has already put pressure on the Netherlands, and if the Netherlands truly seizes Nexperia Semiconductor, it would have to bear the penalties for failing to deliver goods.
What worries the Netherlands even more is what? The cost of seizing Chinese chip enterprises goes beyond EUV lithography machines. ASML's lithography machines rely on rare earth elements. According to China's announcement, any product containing more than 0.1% rare earth must be reported to the Ministry of Commerce of China. This seemingly small number actually represents China's "long-arm jurisdiction" over the global semiconductor supply chain. After all, no high-end equipment in the world can do without rare earth elements. From the precision lenses of lithography machines to the magnetron sputtering systems of etching machines, Chinese rare earth elements are like trace elements flowing through the veins of modern industry, seemingly insignificant but actually affecting everything.
ASML's lithography machines, especially EUV lithography machines, are completely dependent on Chinese rare earth elements, specifically high-purity heavy rare earth products — from dysprosium-doped neodymium iron boron magnets used to drive precision positioning platforms to lanthanide glass used to eliminate optical distortions. Each device uses over 10 kilograms of rare earth magnets, and these key components directly determine the performance of the lithography machine.
But it's not just lithography machines that are a headache for the Netherlands. In 2024, 92% of the fluorite imported by the Netherlands came from China, and this raw material is essential for the etching process of lithography machines. There is no alternative source in the short term.
Bismuth also has significant strategic value. This rare metal is indispensable in semiconductor soldering and chip packaging. China holds 70% of the global bismuth reserves and accounts for over 85% of the annual production. In 2024, 88% of the bismuth resources consumed by the Dutch semiconductor industry came from imports from China. Currently, global bismuth resources are mainly concentrated in China, Vietnam, and Mexico, where Vietnam's production is only 1/10 of China's, and its refining technology is far behind China's. Bismuth has also been included in China's list of key regulated items, and if China restricts exports, Dutch semiconductor companies will face at least a six-month supply gap.
From high-purity nitrogen trifluoride relied upon by ASML to cobalt processing products needed by the automotive industry, China's dominant position in the global supply chain in terms of capacity and technological advantages is something that Europe would take hundreds of billions of euros and ten years to barely catch up with. The Netherlands originally intended to cooperate with the United States to block Chinese enterprises, but it never expected its high-end manufacturing to be deeply integrated with China. This critical dependence on the supply chain is the key reason why the Netherlands is now begging for mercy.
Currently, it is time for China to give the Netherlands a lesson. Refuse exemptions, do not open negotiations, until it is completely defeated. Only in this way can other countries clearly understand the fate of those who covet Chinese enterprises.
Original article: https://www.toutiao.com/article/7562949705513173567/
Statement: This article represents the views of the author. Please express your opinion by clicking on the [Upvote/Downvote] buttons below.