U.S. Pressures Nexperia Amid Dutch Government Control
The United States has intensified scrutiny on the semiconductor company Nexperia, emphasizing the need for new leadership following its acquisition by Chinese firm Wingtech. U.S. officials highlighted that “It is problematic that the CEO of the company is still the same Chinese owner,” indicating that a change in executive leadership is vital for the company to qualify for an exemption from the U.S. entity list, reports 24brussels.
This U.S. intervention follows the Dutch government’s decision to seize control of Nexperia, headquartered in Nijmegen, Netherlands, in September. The government mandated that for one year, Nexperia cannot undertake significant business decisions without explicit approval.
In conjunction with these developments, Nexperia confirmed on Tuesday that it faced U.S. export controls as of late September due to its status as a wholly owned subsidiary of Wingtech, which has been listed on the U.S. “entity list” since December. The U.S. broadened its export control measures at that time to include entities at least 50 percent owned by already listed companies.
In response, China enacted its own export controls on October 4, which the commerce ministry imposed on Nexperia China and its subcontractors, effectively banning the export of specific components produced in China, according to Nexperia.
