The Dutch state suspended a measure invoked in September which allowed it to intervene in certain corporate decisions made at chipmaker Nexperia, following what it described as constructive meetings with Chinese authorities.

Nexperia is majority owned by Chinese company Wingtech Technology.

It was slapped with an order under the Netherlands’ Goods Availability Act due to concerns related to the transfer of product assets, funds, technology and knowledge to a “foreign entity”.

Under the measure authorities were able to reverse or block company decisions if they were deemed harmful to the interests of the company or its future as a Dutch or European enterprise.

It was intended to prevent a situation where Nexperia’s production capabilities would be unavailable to Europe in an emergency. It was first time since 1952 authorities in the Netherlands had used the law.  

In its statement today (19 November) the Netherlands’ government noted initial concerns stemmed from actions attributed to the company’s now-suspended CEO.

It also explained there had been diplomatic progress since the order was issued on the company.

“The Dutch government is positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world. This is seen as a show of goodwill.”

“In light of these developments, The Netherlands has considered it the right moment to take a constructive step by suspending the order”.

Nexperia makes chips and components used across a number of sectors including consumer electronics and the automotive industry.