^{Photo: Bloomberg.com}

China has sharply criticized the Netherlands over its handling of chipmaker Nexperia, urging Dutch authorities to “immediately correct their mistakes” as tensions over technology transfer escalate and ripple through global supply chains. The dispute has become a flashpoint in the wider geopolitical struggle over semiconductor control, with growing consequences for the automotive and electronics industries.

At the center of the conflict is Nexperia, a Netherlands-based semiconductor company owned by China’s Wingtech Technology. In September, the Dutch government invoked a rarely used Cold War-era national security law to intervene in Nexperia’s operations, effectively placing the company under state oversight. Dutch officials said the move was necessary to address security risks, a decision widely viewed as influenced by concerns raised by the United States.

Beijing responded forcefully. Chinese authorities restricted the export of certain Nexperia-related products from China, where a significant portion of the company’s chips are assembled and tested. This countermeasure immediately raised alarms across the global auto industry, which relies heavily on Nexperia’s components for everyday vehicle functions.

A Strategic Chipmaker With Global Reach

Nexperia produces billions of so-called foundation or legacy chips each year, including transistors, diodes, and power management components. While not cutting-edge, these chips are indispensable. They are used in nearly all electronic devices and are especially critical in automobiles, where they support braking systems, airbags, battery connections, sensors, lighting, infotainment systems, and electric windows.

Manufacturing is largely based in Europe, but assembly and testing are conducted in China before the components are shipped worldwide. This cross-border structure means that any disruption quickly cascades through global supply networks.

Industry estimates suggest that Nexperia supplies components used in tens of millions of vehicles annually. Even short-term interruptions can create bottlenecks, particularly as automakers continue to recover from the semiconductor shortages that crippled production earlier in the decade.

China Accuses Netherlands of Irresponsibility

On Wednesday, a spokesperson for China’s Ministry of Commerce publicly rebuked the Netherlands, accusing it of ignoring widespread industry concern and undermining global supply chain security. The spokesperson said Dutch authorities were showing “no responsible attitude” toward stabilizing the semiconductor market and were failing to take meaningful steps to resolve the disruption.

China framed the issue not only as a bilateral dispute but as a systemic risk to the global economy, arguing that political interference in commercial semiconductor operations threatens industrial stability far beyond Europe and China.

Dutch Government Stands Firm

The Dutch government has so far shown no sign of reversing course. Economy Minister Vincent Karremans has repeatedly defended the intervention, stating that national security considerations justified the decision. Officials in The Hague argue that advanced manufacturing assets and sensitive technologies require heightened scrutiny in an increasingly polarized geopolitical environment.

A Dutch government spokesperson declined immediate comment following China’s latest remarks, reinforcing the perception that the standoff is far from resolution.

Automakers Warn of Ongoing Supply Risks

Automotive industry groups say the situation remains unresolved, with uncertainty continuing to cloud component availability. Major manufacturers and suppliers have already issued warnings about potential shortages.

Japan’s Nissan and Germany’s Bosch have both flagged risks linked to constrained supplies of Nexperia components. The German Association of the Automotive Industry, which represents major players including Volkswagen, BMW, and Mercedes-Benz Group, has warned that supply chain vulnerabilities are particularly acute heading into early 2026.

According to the association, elevated risks are expected in the first quarter of the year, a critical period as automakers ramp up production for new models and electric vehicle platforms.

A Broader Semiconductor Power Struggle

The Nexperia dispute reflects a larger global trend in which governments are increasingly intervening in semiconductor markets once governed primarily by commercial considerations. As chips become central to economic competitiveness, energy transition goals, and national security, legacy components are now seen as strategically important alongside advanced processors.

Unless tensions ease, industry analysts warn that prolonged disruption could lead to higher costs, production delays, and renewed volatility across the automotive and electronics sectors. For now, Nexperia has become a symbol of how geopolitics is reshaping even the most basic building blocks of modern technology.