WHAT IS NEXPERIA?
Netherlands-based Nexperia grew from the former chipmaking arm of Philips Electronics. It makes basic inexpensive computer chips in large volumes with over 110 billion units a year that go into products like cars and consumer electronics.
Nexperia makes its silicon wafers in Germany and Britain, which are then sent to plants in China and elsewhere in Asia to be sliced into individual chips and packaged. It was bought for $3.6 billion in 2019 by Chinese electronics firm Wingtech.
Nexperia had sales of $2 billion last year.
WHAT THE FIGHT IS ALL ABOUT. (trump started it of course)
Chinese ownership of Nexperia has become divisive in recent years as U.S.-China technology rivalry escalated.
Wingtech was put on a U.S. blacklist in 2024, and new U.S. rules this year meant that Nexperia, as a subsidiary, would also be included unless given an exemption.
The Dutch government intervened on September 30, saying it would block moves to transfer Nexperia's technology or operations to China. A Dutch court also suspended Nexperia CEO, Wingtech founder Zhang Xuezhen, citing mismanagement.
Beijing responded by blocking Nexperia products from leaving China, prompting the company to tell carmakers it could no longer guarantee supplies.
WHY DO THESE CHIPS MATTER?
Nexperia makes basic power control chips such as transistors and diodes that cost only a few cents to buy. However, such chips are needed in almost every device that uses electricity.
In cars, they are used to connect the battery to motors, for lights and sensors, for braking systems, airbag controllers, entertainment systems and in electric windows.
more here: reuters.com
EU carmakers ‘days away’ from halting work as chip war with China escalates
Industry body says reserves of Nexperia semiconductors are dwindling after Beijing bans exports of key components
theguardian.com |
