Nexperia parent shares jump 6% as Beijing signals thaw in tensions with Netherlands

shares Wingtech TechnologyThe parent company of chipmaker Nexperia extended gains on Monday after Beijing agreed to further talks with a Dutch delegation, easing concerns about a shortage of global auto supplies.

Shanghai-listed Wingtech Technology shares rose as much as 6.4% on Monday, according to LSEG data, after rising 9.7% in the final minutes of trading last Friday on signs of easing tensions in the fight over control of Netherlands-based Nexperia.

China’s Ministry of Commerce said: a statement On Sunday, he announced that steps were being taken to allow the export of certain chips from Nexperia’s Chinese facility, while calling on the European Union to pressure the Dutch government to lift restrictions on the firm.

In a separate statement on the subject On Saturday, Beijing said it had accepted the Dutch government’s request to send representatives to Beijing for talks and hoped the Netherlands would propose “constructive solutions” and take “concrete steps” to resolve the dispute over Nexperia soon.

The move came after a statement. Dutch Economy Minister Vincent Karremans last ThursdayHe cited “the constructive nature of our discussions with Chinese officials” suggesting that Nexperia chips will reach customers in Europe and beyond in the coming days.

Karremans said that China and the United States informed the Netherlands that the trade agreement they made last month would result in the resumption of supplies from Nexperia’s facilities in China. “This is also consistent with the information provided by the European Commission to the Chinese Ministry of Commerce,” he added.

Dutch government Gained control of Nexperia on September 30It prompted Beijing to retaliate by blocking component exports from Nexperia’s China facility, citing security concerns that the company would shift its operations to China, where its parent company, Wingtech, is based.

The dispute over ownership and control of Netherlands-based Nexperia has raised concerns about global shortages of chips widely used in industrial, computer, mobile and consumer products.

Car manufacturers like it volkswagen While warning about possible production risks, honda It cut its annual profit forecast after halting production at several plants.

Washington at the end of September expanded entity list – US trade Blacklist for companies deemed a security or foreign policy risk – to include subsidiaries that are 50% or more owned by firms already on the list.

Nexperia is one such subsidiary of the Zhejiang-based communications equipment manufacturer Wingtech Technology Inc.Which one was it? added to the list Wang said in December last year.

Following the trade truce signed between Beijing and Washington on October 30, which led both sides to ease some restrictions. China said earlier this month: It will allow Nexperia’s China unit to continue shipments to global customers, he said.

“Beijing seemed unwilling to gamble on bilateral relations” [with the Netherlands]”Evercore’s Neo said because the risks are high Dutch government controls ASML HoldingThe world’s number one supplier of advanced chip making equipment.

Because of its unique technology, ASML has become a major focus of US-China tensions, with Washington pressuring The Hague to restrict exports to China.

Suppliers have begun receiving chip shipments from China, according to a note published Saturday by a team of auto and mobility analysts led by Barclays’ Dan Levy. However, analysts warned that low chip stocks could still cause disruptions in the near term.

They added that the relief appeared “temporary” as the underlying dispute between Nexperia’s Dutch headquarters and its China-based operation remained unresolved.