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Thecore

Junior Member
Registered Member
AssassinsMace said:
I saw some arguments how the US and Europe see China’s rare earth restrictions as illegal. They claim since rare earths are raw materials, China can’t lay claim and ownership and restrict them unlike how they can with semiconductors. Never mind that when China wasn’t in the rare earths game, the US had a rare earths ban on selling them to China. I’m sure they also think they can just go into any country and take them for free.
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The Chinese don't understand the laws of the universe, namely, law #1 in which god said "Behold, white people, I created this world solely for your enjoyment and to be entirely under your dominion."
 
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huemens

Junior Member
Registered Member
RoastGooseHKer said:
I mean what would the cost to Beijing be if Beijing simply seize Nexperia’s China-based assets and give them to Wingtech, Huawei, etc. as a proportional retaliation?
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China has already effectively done the Proportional Retaliation on this. If Dutch escalates further China can consider more steps.

What's happened so far is that Dutch seized the CONTROL of Nexperia. They did not confiscate the ownership. The shares still belongs to WingTech. Similarly China's proportional response is to allow WingTech to retain CONTROL of Nexperia China bypassing the orders from Nexperia Netherlands. Nexperia China is still a subsidiary of Nexperia Netherlands.

If Netherlands were to take the ownership of Nexperia Netherlands away from WingTech, then a proportional measure would be to give WingTech the direct ownership of Nexperia China.
 
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antiterror13

Brigadier
RoastGooseHKer said:
I mean what would the cost to Beijing be if Beijing simply seize Nexperia’s China-based assets and give them to Wingtech, Huawei, etc. as a proportional retaliation? And of course, deliberately freeze Nexperia chip shipments to the EU (but US, Japan, and other countries exempted)?

The EU has been quite aggressive toward China since the beginning of the Biden Administration, especially on Xinjiang and EV tariffs. And then you got frontline states like Lithuania poking fights between Brussels and Beijing over Taiwan and human rights. Wonder why Beijing still thinks it has no choice but to rely of the EU market and is soft on the EU overall in spite of Brussels’ clear aggression (but less direct compared to Washington) toward Beijing under leadership of Ursula Von Der Fail.
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I haven't heard Xinjiang "genocide and slave labour" for months or years now ... what happening? ;)
 
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GulfLander

Brigadier
Registered Member
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AndrewS

Brigadier
Registered Member
vincent said:
And Wingtech doesn’t have to pay severance to European workers and pay for the fab closures.
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That assumes Wingtech was actually planning to shut down the fabs in Europe.

The thing is, the fabs in Europe already exist, have been fully depreciated. And i general, the ongoing operating costs should be very low compared to the ongoing capital cost for a new fab.

So why not keep them operating?

But I can see the R&D being shut down in Europe. This is definitely better done in China, because that is where the new fabs (and associated new chip designs) are required.

Plus there's a better supply of chip designers and lower costs in China.

antiterror13 said:
I haven't heard Xinjiang "genocide and slave labour" for months or years now ... what happening? ;)
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The Xinjiang narrative doesn't work when 80%? of the global population thinks the US is supporting Israel's "genocide" in Gaza
 
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Clango

New Member
Registered Member
huemens said:
But if they did that, is it necessarily bad? They should still keep pressure on the Dutch.
But if Nexperia China can bypass the European fabs entirely and source all front-end manufacturing from Shanghai fab, get all customers to deal directly with China and is able to sustain volumes beyond the domestic needs, I think it's better to resume exports to retain as many customers as possible.
Even if/when Dutch agrees to give back control of European fabs, it is probably not a good idea for WingTech to hold on to those. UK politicians are already talking about forcing the sale of Manchester fab, which they already did with Newport fab.
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Yeah fair enough, priority should be to get Chinese fabs running as soon as possible and then just ignore the European parts entirely. If somehow WingTech gets control of Nexperia Europe again the first thing to do should be to immediately sell off all European liabilities, and then make sure they can only do business with Nexperia China, all smuggling should be seen as treason and jailed accordingly. At this point owning European businesses is a ticking time bomb.
 
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