AMSTERDAM / BEIJING — The Dutch government has taken control of semiconductor manufacturer Nexperia B.V., prompting China to impose export restrictions on its Chinese unit. The escalating dispute now threatens to disrupt the global automotive supply chain.
In late September 2025, the Netherlands invoked emergency powers under its Goods Availability Act to assume temporary control of Nexperia. Officials cited serious governance concerns and risks to the stability of Europe’s semiconductor supply.
Days later, China’s Ministry of Commerce issued an export control order that banned Nexperia’s Chinese operations and subcontractors from exporting specific chip components and sub-assemblies.
Dutch authorities said they were in talks with Beijing to resolve the issue, emphasizing that the stability of chip production was a “matter of national and European interest.” China, in response, urged the Netherlands to protect industrial cooperation and maintain global supply chain stability, calling the move an “unjustified interference” in normal business operations.
Major automakers, including European and Japanese manufacturers, have warned of potential chip shortages if the standoff continues. Nexperia supplies essential chips for vehicle control units and other critical systems. Even a short disruption could delay production and deliveries.
Nexperia, headquartered in Nijmegen, the Netherlands, is a leading global producer of discrete and logic chips used in cars, industrial systems, and consumer electronics. The company is owned by China’s Wingtech Technology.
The Dutch intervention bars Nexperia from transferring assets, changing management, or moving technology without government approval for one year. Meanwhile, reports indicate that Nexperia’s Chinese arm has shifted focus toward domestic distribution, selling components only within China in local currency.
Analysts say the situation highlights growing geopolitical friction in the semiconductor industry. With the United States, Europe, and China all tightening export controls, companies are being forced to choose sides in a fragmented global market.
The automotive industry is particularly vulnerable. Low-cost, high-volume chips like those Nexperia produces are crucial to modern vehicles. A prolonged supply disruption could cause temporary shutdowns or delays across Europe and Asia.
The Netherlands, home to key players in global chip production, faces rising pressure to balance security concerns with industrial competitiveness. This case marks one of the most aggressive uses of national emergency powers in Europe’s tech sector.
Both governments say they are in talks to reach a “constructive solution,” but the timeline remains uncertain. Industry analysts warn that without a quick resolution, carmakers could see major delays by early 2026.
For countries like India, which rely heavily on imported automotive semiconductors, the Nexperia episode underscores the need to diversify supply sources and invest in local chip manufacturing.
