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The logo of the Chinese-owned semiconductor company, Nexperia, prominently adorns the entrance of the chipmaker’s facility in Hamburg, Germany. This comes in the wake of the Dutch government’s decision to seize control of the company, following warnings from automotive industry groups about potential disruptions to car production. This was captured on October 23, 2025, as part of a Reuters report by Jonas Walzberg.
In a recent development, China has urged the Netherlands to promptly rectify what it calls “mistakes” concerning the handling of Nexperia, emphasizing the need to re-establish stability within the global semiconductor sector. This appeal highlights ongoing tensions surrounding technology transfer issues.
Last month, the Dutch government invoked a law from the Cold War era to assume control over Nexperia, a move that was reportedly influenced by security concerns raised by the United States. This action, seen as unprecedented, underscores the geopolitical complexities entwined with technology and security.
In retaliation, China has halted the export of Nexperia’s products, a decision that has sent ripples through the global automotive industry, which now faces potential shortages of critical components from the chipmaker.
On Wednesday, a spokesperson from China’s Commerce Ministry called for the Netherlands to “immediately correct its mistakes,” urging them to remove barriers to reinstating the global semiconductor supply chain’s stability and security.
On Wednesday, a spokesperson for China’s Commerce Ministry said that the Netherlands should “immediately correct its mistakes and clear the obstacles to restoring the stability and security of the global semiconductor supply chain.”
“What is perplexing is that, faced with the anxiety and unease of the global industry, the Netherlands remains indifferent and stubbornly insists on its own way, showing absolutely no responsible attitude towards the security of the global semiconductor supply chain, and taking no substantive action whatsoever,” the spokesperson said in a statement, according to a Google translation.
A spokesperson for the Dutch government was not immediately available to comment when contacted by CNBC on Wednesday morning. Dutch Economy Minister Vincent Karremans has repeatedly defended his decision to intervene in the company over recent weeks.
Nexperia manufactures billions of so-called foundation chips — transistors, diodes and power management components — that are produced in Europe, assembled and tested in China, and then re-exported to customers in Europe and elsewhere.
The low-tech, inexpensive chips are needed in almost every device that uses electricity. In cars, they’re used to connect the battery to motors, for lights and sensors, for braking systems, airbag controllers, entertainment systems and electric windows.
Auto industry groups have said that disruptions in the supply chain for Nexperia parts have not yet been fundamentally resolved, meaning that component availability remains uncertain.
Japan’s Nissan and German auto supplier Bosch are among the firms to have warned about looming shortages.
Speaking to CNBC last month, a spokesperson for the German Association of the Automotive Industry (VDA), which represents Volkswagen, Mercedes-Benz Group and BMW among hundreds of others, warned of elevated risks to supply, “particularly for the first quarter” of 2026.
— CNBC’s Annika Kim Constantino contributed to this report.
