【By Observer Net, Xiong Chaoran】 Recently, the Netherlands has taken a dark action against China's leading semiconductor company, Joyi Technology, by forcibly taking over its core assets, Nexperia, which has caused a huge disaster. Not only has it affected Sino-Dutch relations, but also the global automotive supply chain has been hit hard due to chip shortages.

According to Bloomberg, on October 30 local time, Joyi Technology stated that any discussions on resuming the agreement of exporting Nexperia from China must include the condition of restoring the position of its former CEO. The report suggests that this means Joyi Technology has set a "high threshold" in negotiations with the Dutch side to resolve this deadlock.

The spokesperson for Joyi Technology said that as the parent company of Nexperia, Joyi Technology is urging the Dutch government to change its position and eliminate the false accusations of stealing technology.

The spokesperson said in an email statement that it is difficult not to draw the conclusion that the Dutch side sees the former CEO of Nexperia as a "soft target" and has framed his suspension as a "victory." The spokesperson added that "restoring full control and ownership" is a necessary condition to ease tensions and restore stability.

An employee of Nexperia walks through the company's clean room. Visual China

At the same time, the spokesperson for Joyi Technology denied any improper behavior between the company and its Dutch subsidiary.

The spokesperson said, "There is no so-called 'technology transfer' or 'technology theft,' nor is there any so-called 'leak of trade secrets.' "The spokesperson added, "Technology sharing is a common practice in the chip manufacturing industry."

"In addition, Joyi Technology is the legitimate controlling shareholder of Nexperia, and Nexperia is a wholly-owned subsidiary of Joyi Technology - there is no need, nor any reason to 'steal' technology from a subsidiary," the spokesperson said.

According to reports, the Dutch Ministry of Economic Affairs is still making excuses and trying to justify itself regarding Joyi Technology's statement.

In the same statement, the spokesperson of the Dutch Ministry of Economic Affairs continued to hype and exaggerate, claiming that the former CEO of Nexperia posed a so-called "serious threat" and confidently asserted that the Dutch government's forced takeover of Nexperia was "invoking relevant laws," and that the suspension of the former CEO was the result of an "independent investigation" by the Amsterdam Court of Appeal's business court.

Recently, the Dutch government cited a law that had never been used since 1952, suddenly ordered Nexperia to refrain from making any adjustments to its assets, intellectual property, business, and personnel within one year starting from September 30, citing so-called "national security" as the reason.

The Dutch government began taking related actions on September 30, but did not publicly disclose them until October 12. On the day before the Dutch government took action, on September 29 local time, the U.S. government issued a penetrating rule on export controls, adding equally strong export controls on Joyi Technology's subsidiaries that hold more than 50% stakes, which were listed on the "Entity List."

Dutch courts publicly released documents on October 14, showing that the Netherlands and the United States had communicated and coordinated on the "penetrating rules." The U.S. proposed to the Netherlands that the Chinese CEO of Nexperia be replaced and the governance structure be adjusted to avoid being subject to the sanctions of the "penetrating rules."

Currently, Nexperia's factories in Germany and the UK produce semiconductor wafers, which are then sent to China for packaging and testing, with approximately 80% of the final products completed in China.

Subsequently, media reported that after the Dutch government intervened, the Dongguan factory of Nexperia restricted shipments after the National Day and Mid-Autumn Festival holiday, planning to implement a "four days on, three days off" schedule. Joyi Technology stated that the China region was "self-rescue," connecting the domestic supply chain. However, "domesticization" of the supply chain is not easy, involving technical transfers and customer certifications. Nexperia is currently applying for regulatory exemptions, but there is no clear answer on when supply will resume.

The Financial Times reported that Joyi Technology stated that after the Dutch government seized its management control, hundreds of positions in the Netherlands, Germany, and the UK are at risk. The Dutch government's actions have led to the departure of key employees, causing many industrial operations to be suspended.

Currently, the Dutch government's erroneous actions have caused a "major earthquake" in the global automotive supply chain, affecting automakers in the US, Europe, and Japan. Bloomberg reported that the European Automobile Manufacturers Association (ACEA) stated on October 29 that the shortage of chips supplied by Nexperia has worsened, and European automakers may also face production halts in the near future.

Additionally, the German newspaper Handelsblatt quoted a report from the supply chain risk analysis company Prewave, stating that all aerospace and defense companies in Europe use chips produced by Nexperia in China. The report analyzed the supply chain relationships of 107 leading European enterprises across seven industries and found that 86% of the enterprises procure chips from Nexperia's production base in China, meaning that "most of Europe's industries face potential risks."

On October 15, Lin Jian, spokesperson for the Chinese Foreign Ministry, presided over a regular press conference. A reporter from AFP asked, after the Dutch government took over the chip manufacturer Nexperia under the pretext of national security, the company published a statement on the 14th, saying that China has banned the company from exporting products from China. Can the Foreign Ministry confirm this?

Lin Jian stated that for this specific issue, it is recommended to consult the relevant Chinese authorities. I would like to reiterate again that China has always opposed the generalization of the concept of national security and discriminatory practices against specific country enterprises. Relevant countries should abide by market principles and not politicize trade and economic issues. China's determination to safeguard its legitimate and proper rights and interests is unwavering.

This article is exclusive to Observer Net, and without permission, it cannot be reprinted.

Original: https://www.toutiao.com/article/7567185328281305619/

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