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China has blamed the Netherlands for disrupting global chip supplies after the Dutch government seized control of semiconductor firm Nexperia. The dispute has hit Europe’s car sector, forcing some manufacturers to slow production and furlough staff.
Nexperia, a Chinese-owned company based in the Netherlands, makes billions of simple chips for vehicles and electronics. Supplies have been stuck since a dispute between Amsterdam and Beijing over technology transfer.
On September 30, the Netherlands took control of Nexperia, claiming that its Chinese parent company, Wingtech, planned to shift European production to China, a move it said would threaten economic security. China responded by halting exports of Nexperia’s chips, which are mostly packaged in China.
Strong Response from China Over Nexperia Takeover
The Chinese Ministry of Commerce issued a firm statement on Tuesday, telling the Netherlands to stop interfering in Nexperia’s internal affairs. It said the Dutch government’s actions would deepen the adverse impact on the global semiconductor supply chain.
Beijing’s statement came despite earlier positive talks between both sides. China has now started accepting applications for chip export exemptions after a meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
The Dutch Ministry of Economic Affairs said discussions with China and international partners were still ongoing to find a constructive solution. Meanwhile, European carmakers are rushing to apply for exemptions or searching for alternative suppliers.
Nexperia has warned customers it cannot guarantee the quality of shipments from its Chinese site but said it aims to de-escalate as soon as possible.
Industry Leaders Sound Alarm
European automakers have voiced concern over supply chain dependency. Antonio Filosa, CEO of Stellantis, said at a sector meeting in Paris:
Today our system means we have zero autonomy as an industry.
Look at the Nexperia chip crisis. Look at the April rare earth crisis that we went through very painfully.
Mercedes-Benz CEO Ola Kaellenius added that while his company currently has enough chips, it is closely watching developments between China, Europe, and the U.S.
Meanwhile, to counter falling sales in the world’s largest auto market and reduce reliance on global semiconductor supply chains, Volkswagen recently announced plans to develop an in-house assisted driving chip for its business in China.
