According to LSEG data, Wingtech’s Shanghai-listed shares climbed as much as 6.4% on Monday, following a sharp 9.7% surge in late trading on Friday after signs emerged of diplomatic de-escalation in the dispute over Nexperia’s control.
China’s Commerce Ministry said in a statement on Sunday that it had taken steps to allow the export of certain chips from Nexperia’s Chinese facility while urging the European Union to encourage the Dutch government to lift restrictions on the company.
The announcement came after Beijing confirmed on Saturday that it had accepted a Dutch request to send representatives for direct talks, expressing hope that the Netherlands would propose “constructive solutions” and take “concrete actions” to resolve the issue soon.
The move followed comments by Dutch Economic Affairs Minister Vincent Karremans, who said last Thursday that Nexperia chips would soon reach customers in Europe and other markets, citing “the constructive nature of our talks with the Chinese authorities.”
Karremans also noted that both China and the United States had informed The Hague that a recent trade understanding would pave the way for the resumption of chip supplies from Nexperia’s Chinese plants — a statement echoed by the European Commission and China’s Ministry of Commerce.
The diplomatic progress marks a notable shift since September 30, when the Dutch government seized control of Nexperia on national security grounds, arguing that the company’s ownership by Wingtech could result in technology transfers to China. Beijing retaliated by blocking exports from Nexperia’s Chinese operations, disrupting chip shipments crucial to the global automotive industry.
Automakers such as Volkswagen and Honda were among those affected, with Honda cutting its annual profit forecast and halting production at several plants. Other carmakers, including Stellantis, reportedly set up “war rooms” to manage potential shortages and explore alternative sourcing.
Analysts say the standoff reflects broader geopolitical strains between Beijing and Washington. Neo Wang, China strategist at Evercore ISI, noted that the dispute was a “direct result” of escalating U.S.-China tech tensions, citing Washington’s move in late September to expand its entity list to include subsidiaries of already blacklisted firms — a category that includes Nexperia.
Following a trade truce between China and the U.S. on October 30, both sides scaled back some restrictions, paving the way for limited chip exports to resume. Evercore’s Wang said Beijing appeared unwilling to risk worsening ties with the Netherlands, given its strategic control of ASML Holding, the world’s leading supplier of advanced chipmaking equipment.
ASML has long been at the centre of U.S.-China trade friction, with Washington pressuring the Dutch government to curb sales of its high-end lithography machines to China.
According to a note from Barclays analysts led by Dan Levy, suppliers have begun receiving chip shipments from China, though inventories remain tight. The analysts warned that the relief “appears temporary,” as the underlying ownership and governance dispute between Nexperia’s Dutch headquarters and its China-based operations remains unresolved.
For now, investors appear to be taking the diplomatic overtures as a sign of easing tensions — but analysts caution that the global chip supply chain remains vulnerable to further geopolitical shocks.