Dutch Seizure of Chipmaker Nexperia Sparks Supply Chain Crisis for European Carmakers

The Dutch government’s intervention in chip manufacturer Nexperia has triggered mounting tensions between its European headquarters and its Chinese subsidiary, raising alarms over potential production stoppages in the automotive sector. The standoff has emerged after officials in The Hague, citing concerns over the security of Europe’s semiconductor supply, invoked a Cold War-era statute to wrest control from Chinese owner Wingtech. Dutch authorities argued that Chinese management failures posed significant risks to strategic industrial supply chains.

This action resulted in Beijing imposing export controls on Nexperia products, while the Chinese unit reportedly ceased complying with instructions from Europe. Nexperia, a leading supplier of semiconductor components essential for a range of vehicle electronics from window controls to windscreen wipers, has warned clients and staff of imminent disruptions unless cooperation is swiftly restored. The company’s leadership claims exhaustive attempts to reconnect with its Chinese branch through formal and informal outreach have been ignored. In an open letter, Nexperia urged the Chinese office to engage in dialogue, asserting that re-establishing normal operations is critical for customers and the broader automotive industry.

Despite recent negotiations between Dutch and Chinese authorities leading to the reversal of the seizure order, communications within the company remain fractured. Nexperia’s Chinese unit disputes the European account, describing the published letter as misleading and maintaining that it repeatedly sought constructive engagement. Wingtech, the Chinese parent, has also filed a legal appeal in the Netherlands, challenging the decision to place its business shares under a court-appointed administrator and suspend its chief executive.

As legal proceedings continue, the dispute risks escalating further. The disruption of supplies for Europe’s carmakers highlights the vulnerability of multinational supply chains amid global geopolitical tensions. Both sides assert their willingness to negotiate, yet production lines across the continent stand at risk of halting, potentially compromising manufacturing output and commercial stability in the coming weeks.