Tensions between the Netherlands and China continue to rise following the Ministry of Economic Affairs’ decision to intervene at chipmaker Nexperia. The Chinese government calls the move discriminatory. The country warns that the Netherlands should not underestimate China’s determination.

This is reported by De Telegraaf and the FD. The Dutch cabinet took partial control of Nexperia out of concern for national and European economic security. According to insiders, there are signs of mismanagement and conflicts of interest by Zhang Xuezheng, the Chinese CEO of Wingtech Technology, the parent company. This could jeopardize the supply of essential chips.

In early October, the Enterprise Chamber suspended Zhang after European directors of Nexperia reported serious administrative shortcomings. Outgoing Minister Vincent Karremans then used the Goods Availability Act to temporarily influence decisions within the company. This is the first time this law has been applied.

Export ban in response

China responded almost immediately by imposing an export ban on Nexperia. Letters to customers show that the measure has been in force since October 4 and applies to products from the factory in the southern province of Guangdong. The Chinese authorities classify the chips as so-called dual-use products, which can be used for both civilian and military purposes.

The export ban is causing great concern among European customers, especially in the automotive and electronics sectors. According to the German distributor Components at Service, there are no immediate alternatives available for some parts, which could cause production processes to come to a standstill or be delayed for a long time.

The Chinese government claims that the Netherlands is stretching the concept of national security to exclude Chinese companies. According to the Ministry of Foreign Affairs in Beijing, this is a form of economic discrimination and politicization of trade issues. The China Semiconductor Industry Association also expressed criticism, calling out the abuse of security arguments that, according to the organization, threaten the stability of global supply chains.

Tensions are being stoked

Chinese state media is singing the same tune. The Global Times newspaper emphasized that the Netherlands should not underestimate China’s strength and perseverance. Analysts see the export ban as a countermeasure that will further fuel tensions.

Nexperia, once part of NXP and owned by Wingtech since 2019, is one of the largest producers of standard chips for cars, white goods, and consumer electronics. The company is trying to lift the export restrictions in consultation with the Chinese authorities.

Original article by: Mel Dees
14 Oct 2025, 08:49 GMT+1

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In rare move, Dutch government takes control of China-owned chipmaker Nexperia

AMSTERDAM, Oct 13 (Reuters) – The Dutch government has taken control of Chinese-owned computer chipmaker Nexperia, ratcheting up tensions with Beijing as a global fight brews over technology intellectual property, especially around semiconductors.

The government said late on Sunday that it has intervened in Nijmegen-headquartered Nexperia, which manufactures chips for cars and consumer electronics. It cited worries about the possible transfer of technology to Nexperia’s Chinese parent company, Wingtech.

The Hague invoked never-before-used powers under a Dutch law known as the “Availability of Goods Act.” The decision led to a 10% fall in Wingtech’s shares in Shanghai on Monday.

The Dutch government will not take ownership of Nexperia, but it will now have the power to reverse or block management decisions it considers harmful. The company’s regular production is continuing.

WINGTECH SAYS DECISION DRIVEN BY ‘GEOPOLITICAL BIAS’

U.S. President Donald Trump is ratcheting up pressure on Chinese tech firms as part of a broader trade war that saw him threaten 100% tariffs on China’s exports last week.

The U.S. and the Netherlands typically cooperate closely on computer chip industry export controls. A Dutch Economic Affairs Ministry spokesperson, however, said there was no U.S. involvement in its decision regarding Nexperia and the timing was “purely coincidental”.

Washington last month expanded a list of blacklisted firms seen as threats to national security to include subsidiaries.

Wingtech had already been placed on the United States’ “entity list” in December 2024 for its alleged role “in aiding China’s government’s efforts to acquire entities with sensitive semiconductor manufacturing capability.”

Nexperia, which is 100%-owned by Wingtech, said at the time that it would comply with the U.S. rules, though it said its operations were kept at arm’s length from its Chinese parent.

Wingtech called the Dutch government’s intervention in Nexperia, once part of Dutch electronics group Philips, “excessive interference driven by geopolitical bias”.

Wingtech also alleged that non-Chinese Nexperia executives had tried to forcibly alter the company’s equity structure through legal proceedings in a “cloaked power grab” on the company.

A copy of an Amsterdam commercial court ruling dated October 7 and seen by Reuters showed that the court decided on October 1 to suspend Wingtech CEO Zhang Xuezheng from his position as executive director at Nexperia after finding “well founded reasons to doubt” the company was pursuing correct management policy or actions under Dutch civil law. It appointed Dutch businessman Guido Dierick to take Zhang’s position with a “deciding vote”, and transferred control of almost all of Nexperia’s shares to a Dutch lawyer for management. The Dutch state and the company’s labour council had supported the moves, the document showed.

Wingtech could not immediately be reached for comment on Monday outside of normal business hours in China.

Wingtech said in a statement on Sunday that it was consulting with lawyers and seeking government support to “protect the legitimate rights and interests of the company”.

Nexperia, which Wingtech bought for $3.63 billion in 2018, said it complied with all relevant laws and regulations.

COURT ORDERED WINGTECH CHAIR SUSPENDED FROM NEXPERIA BOARD

In its statement, the Dutch government said that administrative problems at Nexperia posed a threat to the company’s “crucial technological knowledge” without elaborating.

“The loss of these capabilities could pose a risk to Dutch and European economic security,” it said.

Nexperia is one of the world’s largest makers of simple computer chips such as diodes and transistors, though it also develops more advanced technologies such as “wide gap” semiconductors used in electrical settings and useful for electric cars, chargers and AI data centres.

Wingtech said in a filing to the Shanghai stock exchange on Monday that its control over Nexperia would be temporarily restricted due to the Dutch order and court rulings, affecting decision making and operational efficiency.

In addition to the United States, Wingtech has had run-ins before with other Western governments over its operations, with Britain ordering it to divest ownership of a facility in Newport.

The Netherlands scrutinised Nexperia’s purchase of startup Nowi in 2023.

Original article by:

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At Evertiq Expo Berlin, market analyst Dieter Weiss (in4ma) and Christoph Solka (IPC, today Global Electronics Association) took the stage once more — not to speak of promise and growth, but of collapse. With data from over 400 companies and biting commentary, the duo unpacked what they claim to be the worst year for Europe’s EMS industry in two decades — and a crisis entirely of the industry’s own making.

“Don’t call it a general global economic slowdown,” Weiss warned the audience. “That’s bullshit.”

The room fell silent.

The European EMS industry contracted by 14% in 2024. Germany saw an even steeper fall of 17.8%, while 28 EMS companies closed their doors entirely. And yet, despite this decline, employment across the sector dropped by only 2%. The result? A dramatic drop in productivity — minus 12.2% across Europe, and minus 16.8% in Germany.

The core explanation? Panic orders, driven by misinformation during the “chip crisis”, Weiss explains — a phenomenon he compared to the toilet paper panic of 2020 during his keynote in Gothenburg last year.

“Don’t talk about a global slowdown of the industry. There was no global slowdown of the industry. Our problems in the electronics industry were homemade,” Weiss said.

Inventory levels, which historically stood at around 15% of annual revenue, shot up to 30% or more. The industry had been building products for demand that never existed — and OEM shelves are still full, Christoph Solka adds.

A shrinking pie, and who’s eating it

in4ma estimates Europe is home to 2,400 EMS companies. But just 136 of them — those with annual revenues above EUR 50 million — now account for 81% of the total market. The other ~1,800 firms share the remaining 19%.

At the same time, Eastern Europe — with fewer companies — nearly matches Western Europe in revenues, thanks to the presence of giants like Flex, Jabil, Plexus, and Foxconn. Labour cost disparities continue to define where large EMS investments land.

Sector breakdown and outlook

The automotive and industrial sectors were hit hardest, with declining orders and severe pricing pressure. Aerospace and defense electronics stood out with 29% growth — though the segment still only accounts for 3.7% of Germany’s EMS output. In other countries, such as France, Italy, the UK, and parts of Scandinavia, the defense share is significantly higher. Consumer electronics and agriculture saw marginal gains.

Looking ahead, Christoph Solka pointed to new data from the Component Distributors Association. After several quarters of falling billings and bookings, the book-to-bill ratio began to climb again in early 2025. By Q1, bookings and billings had finally started to even out — a potential signal of recovery.

The forecast? A 3.1% increase in EMS revenues across Europe this year, with Eastern Europe expected to grow 3.6% and Western Europe 2.7%. Germany, however, is projected to be the laggard, with just 1.6% growth.

But even with cautious optimism, old fears are creeping back.

“What happens at the moment,” Weiss said, “is that there is this guy called Donald Trump who is installing tariffs all the time… Monday, tariffs are high. Tuesday, they are low. Wednesday, they are high again.”

The result: US companies are stockpiling components, hoping to beat the tariffs. Delivery times in Europe have begun to stretch — not dramatically, but enough to raise concern. And Weiss is already seeing the early signs of panic.

“I have to warn you: don’t assume this is the next chip crisis and start hoarding again,” he said. “If we all act reasonably, this will not become a problem.”

But if we let fear take over — again — we’ll repeat the same mistake.

A call for sovereignty — and for urgency

Towards the end, the tone sharpened even further. Weiss argued that Europe must legislate for the domestic production of system-critical electronics — especially PCBs for defence and aerospace. He warned of the national security risks tied to dependence on Chinese production.

He described scenarios where multilayer circuits could be manipulated to fail under specific radio signals — for example, by heating a trace embedded in the inner layers until it breaks like a fuse.

Despite repeated warnings to Brussels, little has changed, he noted.

“We’re so stupid, we think the global economy means buying where it’s cheapest. China doesn’t do that. The US doesn’t. Russia certainly doesn’t.”

Mareike Haass (in4ma) and Christoph Solka will return to share their insights at Evertiq Expo Gothenburg on 4 September 2025, offering attendees the latest updates on the current market landscape and what lies ahead.

Original article: https://evertiq.com/news/2025-08-06-a-homemade-crisis-europes-ems-market-shrank-14-in-2024#:~:text=August%2006%2C%202025-,A%20homemade%20crisis%3A%20Europe%27s%20EMS%20market%20shrank%2014%25%20in%202024,-Editor%3A%C2%A0Dennis%C2%A0Dahlgren

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Economists estimate the overall tariff rate on US imports at around 15% compared to the roughly 2% at the start of the year. This makes it the highest level since the 1930s. However, in a hint that Trump was open to further negotiations, the White House said that the new measures will take effect in a week.

US President Donald Trump signed an executive order imposing tariffs ranging from 10% to 41% on imports from dozens of countries, triggering another round of uncertainty in the global economy as governments around the world grapple with the implications of the new rates.  
 
However, in a hint that Trump was open to further negotiations, the White House said that the new measures will take effect in a week.
The White House announced that the “universal” tariff for goods coming into the United States would remain at 10%, same as it was implemented on April 2. But this 10% applies only to countries with which the US has a trade surplus. 

For countries with which the US has a trade deficit, a 15% rate will serve as the new tariff floor, impacting some 40 countries. Though this will end up being lower for many than the April 2 “reciprocal” tariffs, for some it will be higher. 

Still, the economics and the overall point of it are a puzzle to most economists. 

India’s exports to the US were slapped with a 25% tariff rate; Malaysia’s 19%; and for South Africa the figure was 30%.

Meanwhile, the deadline for a tariff deal with Mexico was extended by another 90 days.

Though Brazil’s tariff rate was set at 10%, a previous Trump order had already placed a 40% tariff on some Brazilian goods.

At 41%, Syria faces the highest tariff rate, followed by Myanmar and Laos, which may be hit by 40% tariffs. So why do these countries in particular face the steepest tariffs? Well, the short answer is, nobody knows!

For some inexplicable reason, a shocked Switzerland faces a rate of 39%. This despite the fact that Switzerland had gone through many rounds of negotiations with the US, and sensed that a mutually acceptable agreement was on the horizon.

According to a report in The New York Times, economists estimate the overall tariff rate on US imports at around 15% compared to the roughly 2% at the start of the year. This makes it the highest level since the 1930s, but it may take a while before it begins impacting households.

Meanwhile, Taiwanese officials expressed cautious optimism despite the new 20% tariff rate set by the Trump administration on goods imported from Taiwan, a major manufacturer of semiconductors.

Rates on semiconductors and other key tech goods are the subject of a US national security probe, under Section 232 of the Trade Expansion Act of 1962. Once that probe is concluded, Taiwan’s negotiating team expects to enter into further talks with their American counterparts.

Original article published 01/07. https://evertiq.com/news/2025-08-01-trumps-new-tariffs-trigger-confusion-across-the-globe

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The European electronic components distribution market is suffering from a declining automotive sector, reports DMASS Europe.

The electronic components distribution industry body represents approximately 85% of the European components DTAM.

DMASS said that European semiconductor distribution sales in Q2 2025 fell 14% compared to Q2 2024. Austria experiencing the steepest drop (36.6%) followed by France (20%), Germany and Ireland both experienced a fall of 17% but the UK fell 10.6% in the period. Iberia alone saw an increase (2.4%).  The total European semiconductor market value is €2.220.00 at Q2 2025.

Power and programmable logic distribution sales were hit hardest in this period, both seeing a decline of 21%. MOS micro logic, analogue and memory sales also shrank by 19%, 15% and 13% respectively. Opto also fell by 6% while sensors and actuators rose by 6% and discrete distribution sales also rose (+1.6%).

The interconnect, passive and electromechanical components (IP&E)  rose overall by 1.43% and is worth €1.51bn but Austria, UK, Germany and Switzerland saw falls of 7%, 3%, 4%, and 6% respectively.
In this market, the standout category was circular connectors with an increase of 122.7%. Power supplies also rose by nearly 7%, electromechanical components by 2.3% and sensors increased by 7.6% compared to Q2 2024. The largest decline was in the capacitor market, film capacitors fell nearly 18%, tantalum capacitors dropped 11% and aluminium capacitors declined 10.5%.

DMASS chairman Hermann Reiter said that whiel the European economy remains resilient it faces “increasing pressure from geopolitical tensions and gloabl trade distruptions”. He said extended lead times, inventory volatility and dependence on critical raw materials from Asia all contributed to strains in the supply chain.

He also identified differences in the international market. “While the electronic components supply chain remains global in scope, customer markets are fragmenting rapidly — with AI demand surging in Asia and the US, Europe faces industrial stagnation and must redefine its position to offset a declining automotive sector.”

“Europe is responding with nearshoring strategies, supply chain diversification, and digital transparency measures. The rising demand for semiconductors, IoT devices, and AI applications continues to drive innovation, presenting growth opportunities even amid uncertainty. To remain competitive, Europe must more actively shape these global dynamics in a rapidly evolving electronics landscape,” he said.

Original Article By Caroline Hayes Posted in Electronics Weekly online on 31st July 2025 | Modified on 31st July 2025

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How could the revenues for EMS companies increase so publicly during a semiconductor crisis? That is the question that market analyst Dieter Weiss from in4ma poses to the audience from the stage at Evertiq Expo in Gothenburg.

The floor is silent. completely silent. (Click this link to View youtube video of the event).

He illustrates his point with a stack of toilet paper, arguing that the toilet paper crisis that emerged during the pandemic demonstrates the same phenomenon as the semiconductor crisis. Toilet paper has a relatively constant demand, and the same can be said for semiconductors, Dieter explains. People did not go to the bathroom more often than before during the pandemic; they simply bought more toilet paper. This was after a persistent rumour about a risk of a shortage had taken hold, which he claims also happened within the semiconductor industry.

“Artificial demand is not grounded in reality and will sooner or later backfire,” says Dieter Weiss.

The automotive industry can be blamed to some extent, but not for the reasons one might think. It was not that they stopped production due to a semiconductor shortage; rather, they had simply produced too many cars during the years before.

What he describes is a traffic jam: someone lightly brakes, the car behind slams on the brakes, and another car further back comes to a complete stop. And now we have a queue. Actions always have consequences, and they are not always equal. A light break – or a rumour – can set off a chain reaction.

The European EMS industry grew by 4.9% in 2023. Western Europe saw an increase of 11.2%, while Central and Eastern Europe (CEE) experienced a decline of 1.8%. Despite the growth in 2023, 2024 has so far been a tough year for manufacturers. The question is: Where have the orders gone? 

The answer is unfortunately painfully simple, according to Dieter: they have already been produced, two years ago, and are now sitting on the shelves of OEMs — nothing is reaching the end customer. Only when OEMs manage to clear their overflowing inventories will the market pick up again.

Between 2015 and 2019, the raw material inventory for Europe’s EMS companies constituted about 15% of annual revenues. This has since increased dramatically. In fact, manufacturers in 2022 had EUR 6.4 billion in excess inventory compared to normal levels. And despite the industry’s efforts to reduce these inventories in 2023, Europe’s EMS companies still had EUR 5.2 billion in surplus stock.

A supply chain consists of several different companies working together: the manufacturer, the distributor, the wholesaler (or in this case, the EMS company), and the end customer. Each works independently of one another, but at the same time, they rely on each other for a constant flow of products that allows companies to fulfill their requirements. And that supply chain was totally disrupted in 2020.

Was there an actual shortage? In short, yes, but it was not as widespread as the “artificial shortage” made it seem. Microcontrollers were indeed in short supply during parts of 2021; beyond this, Dieter argues that the crisis the market experienced was a self-fulfilling prophecy. A troubling rumour about an impending shortage created panic among OEMs, who in turn increased their orders with EMS companies, and the dominoes were set in motion.

“For the various markets within the electronics industry, the average growth rate over the past 10 or 20 years has been about 3.6 percent — and there is a very clear rule: the market never jumps,” says Dieter Weiss from the stage. “So don’t think that from one day to the other, the market jumps up by 20-25%, because that doesn’t happen.”

On the screen, a chart for 2021 is displayed, showing that the semiconductor industry managed to scale up its production that year.

“During 2021, the semiconductor industry was able to increase the output, and I’m talking not about revenues, I’m talking about quantity, by 21.6%. A quantity that is much higher than what actually the market needs. So you must ask yourself: Why did we have a shortage?”

Dieter rewinds to the automotive industry. It is often said that the automotive industry collapsed due to the semiconductor shortage, but that is not true. According to Dieter, this is actually completely wrong, and the numbers show it. The decline began as early as 2019.

“The problem was that the automotive industry, and particularly two players — Nissan and Volkswagen — were constantly fighting for the number one position in global sales. They were competing hard, and in 2018, Volkswagen manufactured so many cars that they had to store around 800 of them at Berlin’s non-finished airport because they didn’t know where to put them.”

That was the situation. The automotive industry started slowing down as early as 2019 and manufactured fewer cars. Then came the COVID-19 pandemic, which created significant problems for the automotive industry. But apart from that, there were no other major factors. So, why did everything suddenly become scarce?

Dieter paints a scenario where purchasing managers tried to be smart with their planning, and distributors found themselves unable to handle all the orders.

“In response to this, distributors implemented a new rule: no fixed order, no delivery date. So, you could not do any logistical planning anymore, because you had to order the product in order to get the delivery date.”

Then a new problem arose: What happens if a company has the semiconductor but lacks the other parts needed for the PCBA?

The industry responded by starting to order the entire bill of materials and purchasing everything at once. By doing this, they fulfilled exactly what the distributors had planned — to move their stock to the OEM and EMS companies. “And all of a sudden, you build up huge inventories.”

Again, Dieter echoes: There has never been any real shortage of semiconductors. It was merely a self-fulfilling prophecy. False information about an impending shortage caused companies to buy more than they actually needed, and now all that material sits in stock.

Now, in 2024, many wonder: Where have all the orders gone?

“You manufactured those orders to your customers already in 2022. And in the first half of 2023. And they are now lying on the shelves of your customers. And as your customers did not see a jump in the market for their customers, they still have their inventories full. So they pulled in the second half of 2023, they pulled the brakes and said no further deliveries anymore. We don’t need anything. And many also said we don’t need anything in 2024 anymore.” 

That is why revenues for many EMS companies are decreasing by 10-15%, and for smaller companies, they are dropping by 20-25%. This is, by the industry, a self-inflicted problem.

“When you ask me today when the orders will return? The answer is: Forget 2024. Nothing will happen in 2024 anymore. You will have to live with the fact that your revenues will be much lower. Only in the first half of next year, you will see a relief,” Dieter concludes, urging all listeners to look for the right planning tools that can help avert situations like this.

Editor: Dennis Dahlgren

Original article can be viewed at: https://evertiq.com/news/56445

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