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Netherlands May Drop Control of Nexperia If China Resumes Chip Exports

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The Dutch government is reportedly prepared to end its control over Nexperia if China resumes exports of the company’s chips, potentially easing tensions that have rattled global supply chains, Bloomberg News reported on Friday.

Citing people familiar with the matter, Bloomberg said authorities in the Netherlands could suspend the ministerial order as soon as next week, provided shipments from China resume and are verified. The order, imposed on September 30, gave The Hague temporary veto powers over Nexperia’s corporate decisions amid concerns about Chinese influence over the semiconductor maker.

Dutch Economy Minister Vincent Karremans said on Thursday he expected Nexperia chips to reach European and global customers “in the coming days.” He added that the government would “support these developments, and take appropriate steps where necessary.”

A spokesperson for Karremans declined to clarify whether those steps could include lifting the intervention, which was initially designed to safeguard Dutch strategic interests in the semiconductor sector.

The dispute erupted after the Chinese government blocked exports of Nexperia’s products from the country in early October, following the Dutch seizure of control. The move sparked a global shortage of Nexperia chips, which are widely used in automotive, industrial, computing, and consumer electronics.

The disruption forced several European carmakers to scale back production and furlough workers. Industry analysts say restoring chip flows is critical to stabilizing supply chains and preventing further economic fallout.

Nexperia, which was acquired by China’s Wingtech Technology, has yet to comment on the Dutch government’s latest position.

European automakers warn of production risks amid Dutch-China dispute over chipmaker Nexperia

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European carmakers are warning of potential production disruptions as a trade and technology dispute between China and the Netherlands over chipmaker Nexperia threatens to choke off the supply of critical automotive chips.

The European Automobile Manufacturers’ Association (ACEA) said on Thursday it was “deeply concerned” that Nexperia’s inability to guarantee chip deliveries could halt production at European factories. “Without these chips, automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers,” ACEA said, urging an immediate resolution.

Nexperia, which supplies chips essential for vehicle electronics, told customers last week that deliveries could no longer be guaranteed. The company said it is engaging with Chinese authorities to obtain an exemption from export restrictions, but declined to give further details.

The dispute erupted after the Dutch government seized control of Nexperia on September 30, citing concerns over the possible transfer of technology to its Chinese parent company Wingtech, which is subject to U.S. export controls. Washington added Wingtech to its entity list in December, triggering restrictions that now extend to Nexperia under U.S. law.

In response, China’s commerce ministry imposed export controls on Nexperia China and its subcontractors, banning them from exporting certain chip components. The escalating standoff places Europe’s car industry in the crossfire of a widening U.S.-China tech war.

Nexperia’s chips are not high-end semiconductors but are produced in mass volumes crucial for car electronics. Major manufacturers including Volkswagen, BMW, Mercedes-Benz, and Stellantis, as well as suppliers like Bosch, said they are assessing risks and exploring contingency plans.

China’s commerce ministry criticized the Dutch government’s intervention, saying it “opposes interference in enterprises through administrative means” and vowed to protect Chinese companies’ rights.