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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.

Nexperia Warns It Cannot Guarantee Quality of China-Made Chips After October 13

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Dutch semiconductor manufacturer Nexperia said it expects to resolve the ongoing crisis over control of the company but cautioned customers that chips produced in China after October 13 may not meet its quality or authenticity standards.

The warning follows a turbulent period for the firm, which saw the Dutch government seize control of Nexperia on September 30 amid national security concerns, and China respond by blocking chip exports on October 4. The resulting standoff has disrupted supply chains for automakers and electronics manufacturers that rely on Nexperia’s components.

The company said its operations outside China — including facilities in Europe, Malaysia, and the Philippines — remain unaffected and are functioning normally.

In a statement, Nexperia welcomed assurances that, under a new U.S.-China agreement, it will be exempt from American export restrictions for one year. Beijing has also said it will allow exports on a “case-by-case” basis.

Nexperia’s Chinese parent company, Wingtech Technology, remains under U.S. restrictions, and its founder Zhang Xuezheng was suspended as Nexperia CEO by a Dutch court on October 7, contrary to earlier reports suggesting he retained control.

While most of Nexperia’s chips are manufactured in Europe, about 70% are packaged and distributed in China, where the local unit has declared operational independence and claims to have sufficient inventory to meet demand through 2025.

The Dutch firm said it remains committed to maintaining its Chinese operations while seeking alternative packaging and supply solutions to ensure “product availability in a sustainable manner.”

Nexperia China Says It Has Ample Inventories After Dutch Parent Halts Wafer Supplies

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Nexperia’s China division said on Sunday it has built up sufficient inventories and secured its supply chain after the Dutch parent company suspended wafer shipments to its Chinese assembly facilities. The unit assured customers that production and deliveries would continue as planned despite the disruption.

The Dutch chipmaker halted wafer supplies on October 26, citing what it called the Chinese unit’s failure to comply with agreed payment terms. Nexperia China, however, rejected the accusation, calling the move “unilateral” and “extremely irresponsible,” and describing the payment-related claims as “misleading and highly deceptive.”

The dispute follows months of political tension after Dutch authorities took control of Nexperia from its Chinese owner, Wingtech, in September over national security concerns about potential technology transfers. In response, Beijing temporarily blocked the company’s products from being exported.

Nexperia China said it has “proactively initiated contingency plans” and is working to qualify new wafer suppliers, adding that existing inventories would sustain production “through year-end and beyond.” The company expects to meet full customer demand starting next year.

Nexperia produces inexpensive but essential power-control chips — such as transistors and diodes — widely used across consumer electronics and the automotive industry. Automakers have warned that any prolonged supply disruption could affect production.