China Criticizes Dutch Seizure of Nexperia, Warns of Global Auto Chip Disruptions

Gerik

Summary:

A dispute between China and the Netherlands over control of chipmaker Nexperia has intensified, threatening semiconductor supplies vital to the global auto industry...

Beijing Demands Action After Dutch Move on Nexperia Chipmaker

China has sharply criticized the Netherlands after the Dutch government seized control of Nexperia, a Chinese-owned chipmaker based in the Netherlands, citing national security concerns. Beijing called the move a “mistake” and accused Amsterdam of ignoring the global anxiety surrounding disruptions to semiconductor supplies particularly those vital to the automotive sector.

The Dutch government’s intervention in September 2025 was enabled by invoking an old Cold War-era law, reportedly under pressure from the United States due to fears around technology transfer and national security risks. Nexperia, though considered a low-tech chip producer, plays a critical role in global electronics by manufacturing foundation chips like diodes, transistors, and power management ICs.

China Retaliates, Global Supply Chain in Jeopardy

In retaliation, China began restricting the export of Nexperia components from its facilities within China, effectively choking the pipeline of parts that are assembled and tested there before being re-exported to Europe and other markets. This has sent shockwaves through global automotive supply chains, which heavily depend on these basic but essential chips.

A spokesperson for China’s Ministry of Commerce urged the Netherlands to “immediately correct its mistakes” and “clear the obstacles” to avoid prolonged instability in the global semiconductor industry. The statement condemned the Netherlands for “stubbornly insisting on its own way” and failing to show responsibility toward maintaining semiconductor supply chain security.

Automotive Industry Sounds the Alarm

The stakes are high for automakers. While Nexperia chips may not grab headlines like cutting-edge AI processors, they are vital to nearly every electrically powered system in a car, including braking systems, airbags, infotainment units, and power windows.

As the supply of Nexperia chips remains constrained, global automakers are bracing for critical shortages, particularly in early 2026. The German Association of the Automotive Industry (VDA), representing major companies like Volkswagen, BMW, and Mercedes-Benz, has warned of elevated risks to production in Q1 2026. Japanese automaker Nissan and German supplier Bosch have also issued warnings about possible supply bottlenecks.

Behind the Tensions: A Broader Geopolitical and Tech Conflict

This confrontation over Nexperia sits within the larger context of rising geopolitical tensions in global tech supply chains. The United States has already implemented sweeping export restrictions on advanced semiconductors and chipmaking equipment to China. Europe, now caught in the middle, faces difficult decisions as it tries to balance economic dependencies with national security concerns.

Nexperia, owned by China’s Wingtech Technology, became a flashpoint in 2022 when its acquisition of a UK-based wafer plant was blocked by the British government, citing similar national security issues. The Dutch move is seen by China as another step in what it perceives as a Western campaign to stifle Chinese tech expansion.

No End in Sight as Supply Concerns Persist

With no sign of compromise, the Nexperia standoff underscores the fragility of global supply chains, especially in foundational technologies that quietly power modern industries. Until a diplomatic resolution is found, automakers and electronics manufacturers worldwide remain exposed to further disruption potentially threatening production timelines and increasing costs in the months ahead.

As 2026 begins, both governments face pressure not only from each other but also from the global business community, which is calling for pragmatism, clarity, and the swift restoration of supply chain stability.

Source: CNBC

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