Economic Affairs Min. stands by controversial Nexperia intervention despite fallout

Caretaker Minister of Economic Affairs Vincent Karremans thought about alerting foreign governments before moving to curb the activities of chip producer Nexperia. “In the end, I chose not to,” he told parliament during a debate. According to Karremans, limiting the number of people informed reduced the risk that Nexperia’s Chinese parent company would find out and respond quickly. He said he was concerned that, without action, the company’s “knowledge, abilities, and technical expertise” might be shifted to China.

China responded to Karremans’s action with sweeping retaliation. Nexperia chips manufactured in China were barred from entering the European market, a restriction that placed significant strain on the German car industry and other sectors.

Parliamentarians accused Karremans of going it alone and said he ought to have notified partner countries or the relevant EU commissioner in advance. Karremans conceded that aligning positions “is always beneficial,” but only if the chance of a leak “is reduced to zero.” He also urged lawmakers to recognize the intense time constraints he faced.

The British newspaper The Guardian quoted Karremans as saying he “would repeat every step.” Several MPs interpreted that comment as overconfidence or “swagger.”

Karremans explained that he simply wanted to underline that the public interest was in jeopardy and that, short of nationalization or invoking emergency law, his options were extremely limited. He reiterated that Europe risked becoming fully reliant on China for low-end chips if Nexperia’s Chinese parent company proceeded with its intentions.

In the debate, Karremans admitted he had not expected China to react so sharply. He explained that, in his view, “that was not the most probable scenario.” He later remarked that he would, in the future, pay more attention “to possibilities that may seem less likely.”