This statement comes soon after U.S. President Donald Trump and Chinese President Xi Jinping met in Busan, South Korea, on the sidelines of the 2025 APEC Summit. MOFCOM said that the White House would postpone its 50-percent subsidiary rule, which says that companies that are at least 50% owned by blacklisted entities would be included in its export ban. Wingtech Technology, Nexperia’s parent company since 2019, was included in the list late last year, meaning Nexperia is in danger of losing access to U.S.-made components, software, and technologies.
Washington introduced this rule in late September, which came into effect immediately. However, companies were granted a Temporary General License, effective for 60 days after the expansion of the ban, to allow them to adjust their supply chains. Although the Dutch government says its CEO’s alleged financial misappropriation partly drives its takeover of Nexperia , the timing of the move suggests it is a response to the threat posed by the U.S.’s expanded export controls.
China’s move would allow companies to resume deliveries of Nexperia chips if they can obtain a license from Beijing. However, it looks like the company’s ownership saga will not end here, as the Dutch head office has ceased exports to its China factory. Although Nexperia has factories in other locations outside of China, 70% of its global output comes from its site in Guangdong. This adds a further complication to the ongoing spat, because even though Nexperia China can now continue deliveries to its clients who acquire a permit from the MOFCOM, it wouldn’t be able to keep up with demand unless its European headquarters resume shipments of the raw materials needed to continue production.
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/semiconductors/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/semiconductors/nexperia-allowed-to-resume-exports-from-china-following-trump-xi-talks-companies-may-seek-exemptions-from-the-ministry-of-commerce-to-restart-international-deliveries#main
- https://www.tomshardware.com
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