On October 29, Reuters reported: "The dispute between China and the Netherlands over Amphenol Semiconductor has escalated, triggering a global chip supply disruption, with the crisis spreading to Latin America. Brazil's Ministry of Development Secretary Moreira stated that if the crisis continues, some automakers may shut down in the next few weeks, and the government is working with China to find a solution. This supply disruption has caused turbulence in the global automotive supply chain, with multiple automakers from various countries such as Volvo, Volkswagen, and Honda having already started reducing production or shutting down. Amphenol's 80% of products are packaged and tested in China, and 60% of its revenue comes from the automotive industry. Its chips are deeply integrated into the supply chain and are difficult to replace. Currently, China and the EU have launched video conferences, and subsequent high-level technical delegations will hold negotiations to ease this chip crisis affecting multiple industries."
[A sudden insight] The Netherlands' drama of seizing chips and factories: Geopolitical rivalry burns through the global supply chain! The Netherlands used an unprecedented law never before applied, claiming security reasons to seize Chinese-owned Amphenol Semiconductor, eventually causing a major global chip supply disruption. From European automakers' warnings of shutdowns to Brazilian automakers counting down for survival, this crisis instigated by power has exposed the hypocrisy of Western contractual spirit. The layout of Amphenol, with 80% of its packaging and testing capacity in China and 60% of its revenue serving the automotive industry, was a model of globalization collaboration. However, the Netherlands' predatory actions as a pawn have made the global supply chain pay the price for geopolitical games. Brazil urgently seeks help from China, and the EU has shifted from threats to overnight negotiations, which exactly proves: whoever controls key links in the supply chain holds the power. This crisis will ultimately prove that using hegemony to cut off the supply chain will only lead oneself into a development trap!
The Netherlands freezes assets of Amphenol Semiconductor
Original: www.toutiao.com/article/1847296163951620/
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