By Toby Sterling
AMSTERDAM (Reuters) -The Dutch government said on Wednesday it was suspending its intervention at computer chip maker Nexperia after what it said were constructive talks with China over a dispute
which has led to shortages of chips needed by car manufacturers.
Although the move will give some comfort to customers that the clash over Nexperia between China and the Netherlands is easing, supply chain issues have not yet been resolved.
Nor has a dispute between Nexperia's European headquarters and its Chinese parent Wingtech which was sparked by the Dutch state taking control of Nexperia on September 30.
The Dutch government said the move was needed to prevent Nexperia's former CEO from moving its operations to China. Beijing responded by halting exports of Nexperia's finished products on October 4, a measure it has since partly relaxed.
Dutch Economy Minister Vincent Karremans said on Wednesday that suspending the government intervention represented a gesture of goodwill, adding that talks will continue.
"We are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world," he said in a statement.
Nexperia is a major supplier of basic computer chips to the car industry, and shortages have threatened automotive supply chains, leading to production slow downs and halts.
The company manufactures most of its wafers in Hamburg, Germany, and then sends them to Dongguan, China to be packaged and sent on to customers.
STALEMATE CONTINUES TO THREATEN SUPPLIES
After the Dutch state intervention, Nexperia's Chinese arm declared itself no longer subject to control by European management and on Oct. 26, the European side of the company stopped shipping wafers to it, citing non-payment.
That stalemate continues to threaten supplies, although the Chinese side is now selling down stockpiles of chips it has previously processed, offering temporary relief to customers.
Spokespeople for Nexperia and Wingtech, which oversees the Chinese operations, both said they were preparing reactions to Wednesday's move by the Dutch government.
Separately, a Dutch court in October ordered the removal of ex-Nexperia CEO and Wingtech founder Zhang Xuezheng, citing alleged mismanagement.
Wingtech has said it will fight the decision.
The next step in the legal process will be hearings on a formal investigation into mismanagement, a spokesperson for Amsterdam's Enterprise Court said.
No date has been set.
(Reporting by Toby Sterling and Bart Meijer; Editing by Jane Merriman and Alexander Smith)
