- The Dutch state seized control of Nexperia under the Goods Availability Act, citing serious governance failures and risks to European technological security.
- China responded by halting exports from Nexperia’s Chinese plants, triggering a chip shortage that forced major carmakers to warn of imminent production cuts.
What happened: Dutch intervention triggers global chip disruption
On 30 September 2025, the Dutch government invoked the Goods Availability Act to take control of Nexperia, a Netherlands‑based semiconductor manufacturer owned by China’s Wingtech Technology. Officials said the intervention was prompted by “acute signals of serious administrative shortcomings and actions” that threatened the safeguarding of critical chip‑making technology on Dutch and European soil.
Court rulings soon followed. On 6 October, a Dutch court suspended the company’s Chinese CEO and removed his control, in a drastic move to curb what authorities described as mismanagement and potential transfer of sensitive know‑how to China.
In retaliation, the Chinese commerce ministry blocked exports of chips from Nexperia’s Chinese factories on 4 October, most of which handled packaging and distribution for products manufactured in Europe. That decision jolted global supply chains — the chips Nexperia produces, though technically simple (diodes, transistors, MOSFETs), are crucial across the automotive and electronics industries.
By late October, Nexperia informed customers it could “no longer guarantee supplies,” raising the spectre of production stoppages at factories worldwide.
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Why it’s important
The Nexperia crisis spotlights how deeply the global auto industry remains dependent on a handful of semiconductor producers — and how geopolitical tensions can quickly destabilise supply. Many modern vehicles rely on dozens of Nexperia chips for essential functions like power management, safety systems, and electronics.
Europe, despite its ambitions under the EU Chips Act to boost domestic semiconductor production, appears exposed. The seizure shows how fragile supply chains are when ownership and control issues intersect with strategic technology concerns at a time of intensifying U.S.–China rivalry.
For automakers and electronics firms, the disruption serves as a stark warning: over‑reliance on a narrow slice of global suppliers — even for “basic” chips — risks crippling production. Some industry groups are already warning of potential shutdowns or slowdowns in US and European plants if the dispute lingers.
Meanwhile, the diplomatic and economic fallout — between The Hague, Beijing and global trade partners — may reshape how Western governments treat foreign‑owned firms in critical tech sectors for years to come.
