The dispute follows a decision by the Dutch government in September to invoke a Cold War-era law to effectively take control of Nexperia, a Netherlands-based chipmaker owned by a Chinese company. The move, which is highly unusual, was reportedly taken after security concerns were raised by the United States over technology transfer and strategic risks.
China responded by restricting the export of Nexperia-related products from within its borders, a step that quickly sent shockwaves through the global automotive industry. Automakers and suppliers rely heavily on Nexperia’s components, and the restrictions have raised fears of renewed shortages at a time when supply chains are still recovering from previous disruptions.
On Wednesday, China’s Ministry of Commerce sharply criticized the Dutch government, urging it to “immediately correct its mistakes” and remove barriers preventing the restoration of stability and security in the global semiconductor supply chain. In a strongly worded statement, the ministry accused the Netherlands of ignoring growing concerns from the global industry and failing to act responsibly despite mounting risks.
According to the Chinese government, the Dutch authorities have remained “indifferent and stubborn,” insisting on their position while taking no substantive steps to address the uncertainty now facing manufacturers worldwide.
The Dutch government did not immediately respond to requests for comment. However, Economy Minister Vincent Karremans has repeatedly defended the intervention in recent weeks, arguing that the action was necessary to safeguard national and strategic interests.
Nexperia plays a critical role in the global electronics ecosystem. The company produces billions of so-called foundation or legacy chips, including transistors, diodes, and power management components. While these chips are relatively low-cost and not considered cutting-edge, they are essential to nearly all electronic devices. Nexperia’s chips are manufactured in Europe, assembled and tested in China, and then shipped to customers across Europe and other regions.
In the automotive sector, these components are used in a wide range of systems, including battery connections, lighting, sensors, braking systems, airbags, infotainment units, and electric windows. As a result, any prolonged disruption could have far-reaching consequences for vehicle production.
Industry groups say the situation remains unresolved. Auto manufacturers and suppliers have warned that uncertainty around Nexperia’s supply chain continues to pose a serious risk. Japan’s Nissan and German automotive supplier Bosch are among companies that have flagged potential shortages.
The German Association of the Automotive Industry (VDA), which represents major carmakers such as Volkswagen, Mercedes-Benz Group, and BMW, has also expressed concern. Speaking last month, a VDA spokesperson warned that supply risks remain elevated, particularly heading into the first quarter of 2026.
As geopolitical tensions increasingly intersect with industrial policy, the Nexperia dispute highlights how decisions taken for national security reasons can ripple through global supply chains, especially in sectors like semiconductors where even low-tech components are critical to modern manufacturing.