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Dutch government takes control of Chinese-owned chipmaker Nexperia

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Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#651

Post by adrian_b »

daan-k wrote: post #454
Doxin wrote: post #5

Some more context from a dutch news source[0]: The ministry of economic affairs intervened out of a fear that crucial technological skills and capacities will leave the Netherlands and Europe. The ministry stated in a press release[1] that there was a threat of a "knowledge leak" (w/e that means exactly) and a possible threat to the European economy. After this intervention the Dutch government can now stop or revers…

Some new information has just emerged in the Dutch press. According to a just published article by the NRC newspaper [0], the owner wanted to use Nexperia's funds to finance another business (WingSkySemi) which was in financial trouble. He would have done this by making Nexperia place large orders for wafers it did not need. The article mentions Nexperia only requiring $70-80 million in wafers, while Nexperia would h…

The press is full of contradictory information, so it is hard to guess which is the truth.

This information about misdeeds of the CEO looks like a very convenient excuse for the Dutch government, while another article published in the press claims that, according to newly published court proceedings, already at a meeting in June between US officials and Dutch officials USA had requested the removal of the Chinese CEO by the Dutch, as a condition for not enforcing export controls over Nexperia.

https://www.politico.eu/article/us-pressured-the-netherlands...

Both claims could be true, USA has pressured Netherlands to remove the Chinese CEO, then the Dutch have investigated the CEO to find a reason to intervene and they have found this dubious deal where he bought a double amount of wafers compared to the actual needs.

This deal may be abusive, but it looks rather mild in comparison with how most CEOs mishandle the assets of their companies. I doubt that there are many CEOs against whom a thorough investigation would not find such deals. Here at least he got usable semiconductor wafers, but many such deals are for valueless software or consulting.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#652

Post by furyg3 »

adrian_b wrote: post #651
daan-k wrote: post #454

Earlier quoted context omitted.

Some new information has just emerged in the Dutch press. According to a just published article by the NRC newspaper [0], the owner wanted to use Nexperia's funds to finance another business (WingSkySemi) which was in financial trouble. He would have done this by making Nexperia place large orders for wafers it did not need. The article mentions Nexperia only requiring $70-80 million in wafers, while Nexperia would h…

The press is full of contradictory information, so it is hard to guess which is the truth. This information about misdeeds of the CEO looks like a very convenient excuse for the Dutch government, while another article published in the press claims that, according to newly published court proceedings, already at a meeting in June between US officials and Dutch officials USA had requested the removal of the Chinese CEO…

I can imagine that there could be a case of parallel construction to build a case to get a specific desired outcome. I also think that if you're right and this is an example of a 'mild' case of mismanaged assets it's still pretty egregious.

I find the even milder circular financing of deals like nVidia investing in OpenAI to be concerning.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#653

Post by karlitooo »

bpye wrote: post #367
Doxin wrote: post #5

Some more context from a dutch news source[0]: The ministry of economic affairs intervened out of a fear that crucial technological skills and capacities will leave the Netherlands and Europe. The ministry stated in a press release[1] that there was a threat of a "knowledge leak" (w/e that means exactly) and a possible threat to the European economy. After this intervention the Dutch government can now stop or revers…

This seems similar to the UK government taking control, though not ownership, of British Steel earlier in the year [0] as the Chinese owner was expected to shut down their blast furnaces, an action that could not be easily reversed - if possible at all. One difference is that the UK government rushed through new legislation [1] to allow this, vs the Dutch government using powers they have had for decades. [0] https:/…

Get control of foreign company with specialist knowledge in a domain you want to dominate, drain its cash and shut it down.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#654

Post by wkat4242 »

noobermin wrote: post #310
itopaloglu83 wrote: post #133

Earlier quoted context omitted.

Everybody is a fan of free access and capital markets, until a foreign entity purchases something of importance. It’s a continuation of recent trends and closing markets. Nobody in their sane mind would allow a company like ASML or the likes to be purchased by competitors. But the irony is that when a non-European entity were to do something like this, e.g. nationalize their oil or mining etc. industry or a firm, the…

The age of globalism and unfettered free trade is over, and good riddance.

Yeah globalism is what got us into this dependency on China (and on the US as well). I'm very much a proponent of limiting international investment.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#655

Post by cced »

devnullbrain wrote: post #391
contrarian1234 wrote: post #322

Earlier quoted context omitted.

This stuff constantly happens to foreigners in China and just seems to be mostly due to having bad local legal teams. If your CEO can run off with the company stamps and screw you over.. then it just sounds like amateur hour and you have no idea what you're doing. The legal system there is fundamentally very bureaucratic - there are rules, but they're very different from the West. You need local help - and a lot of i…

If it’s constantly happening, does that sound like an attractive market to work in? I’m very open to the idea of companies screwing up, but day-to-day operations shouldn’t look Kafkaesque.

It's attractive enough that people keep going despite it "constantly happening."

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#656

Post by powerapple »

tracker1 wrote: post #575
powerapple wrote: post #491

Earlier quoted context omitted.

this theory would contradict with the national security reason used by the government though. I have read in Chinese sources that they plan to remove the European directors, reasons I don't know.

It seems that microchips are a major export, a single industry in a country collapsing can cause a lot of damage. From other mentioned articles, it seems like the company was setup to extract all value to prop up another company... not dissimilar from K-mart and Sears stripped of all value at the end. Now imagine that accounts for say even 5% of GDP and other industries rely on that product as well. I've been advocat…

I can see that. WingTech bought it for profit, the best way to get the maximum reward is from the stock market. It is actually not rare operation in Chinese companies. But I doubt this is the reason Dutch government would interfere using the national security excuse. There are other ways to handle this, and would be less damaging. I am more inclined to believe that the US's pressure and the current management who wants to use this as a chance to take control of the company.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#657

Post by nosianu »

paganel wrote: post #648
nosianu wrote: post #595

Earlier quoted context omitted.

> Milk and yogurt certainly are, also bread, also lots of food stuff. Which is why both US and Europe protect and subsidize those sectors to a fault.

Europe isn’t a country, and unfortunately my country (Romania) would be left empty-handed in case of the worst (this pandemic has proved it).

> Europe isn’t a country

You don't say! Completely irrelevant, since agricultural policy for the EU is made by the EU, and individual countries then write their local laws accordingly.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#658

Post by insane_dreamer »

Ray20 wrote: post #610
insane_dreamer wrote: post #539

Earlier quoted context omitted.

One can argue about the causes -- and no doubt there are many, the biggest IMO being that WW2 was so horrific that Europeans were willing to do anything to prevent it again -- but there's no disputing that the last 75 years of peace in Europe is unprecedented in its long history of near-continuous inter-state warfare for the past ~2000 years (since "Pax Romana").

> WW2 was so horrific that Europeans were willing to do anything to prevent it again But this is total childish nonsense. We gained 75 years of peace in Europe not because the war was terrible, but because the entire world was divided between the USA and the USSR. And, as it happened, these two countries decided not to fight each other in a full-scale war.

No, sorry, but that's incorrect.

The reason we gained 75 years of peace is because France and Germany decided to form an alliance to prevent further conflict (considering they had just fought 2 wars in the space of 40 years), and, as a secondary goal, to reduce dependence on the US (de Gaulle being especially eager), starting with the Treaty of Rome, and evolving into the EU.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#659

Post by Ray20 »

insane_dreamer wrote: post #658
Ray20 wrote: post #610

Earlier quoted context omitted.

> WW2 was so horrific that Europeans were willing to do anything to prevent it again But this is total childish nonsense. We gained 75 years of peace in Europe not because the war was terrible, but because the entire world was divided between the USA and the USSR. And, as it happened, these two countries decided not to fight each other in a full-scale war.

No, sorry, but that's incorrect. The reason we gained 75 years of peace is because France and Germany decided to form an alliance to prevent further conflict (considering they had just fought 2 wars in the space of 40 years), and, as a secondary goal, to reduce dependence on the US (de Gaulle being especially eager), starting with the Treaty of Rome, and evolving into the EU.

Yeah, shure. Germany, which started WW2, and France, which collapsed and capitulated less than a year later.

There have been no wars in Europe for 75 years because for those 75 years the United States single-handedly decided with whom Europe would start wars.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#660

Post by fsckboy »

shtzvhdx wrote: post #281
fsckboy wrote: post #218

Earlier quoted context omitted.

> The British, French, and Israelis literally went to war against Egypt over the Suez. The British and the French were concerned about the Suez, but Israel was not dependent on the Suez and went to war over their navigation being blockaded by Egypt in the Gulf of Aqaba and the Straits of Tiran, which was a violation by Egypt of maritime law. Aqaba is in the Sinai peninsula which is also bounded by the Suez. https://e…

I don't see how Egypt's claim against Israel was wrong. The waters have been internal waters literally for three millennia (or more) until foreigners came in and built a canal connecting what is actually a very narrow gulf to the Mediterranean. Foreigners come in, unilaterally build a canal and now the locals lose national sovereignty over their waters? Also, why does Egypt have to agree to the freedom of navigation…

you are talking about the Suez and Israel, and it seems that you didn't read what I wrote
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