A Chip Squeeze of Their Own Making: Nexperia Issues Urgent Plea To China Unit

In a stark illustration of geopolitical blowback, Dutch chipmaker Nexperia is now publicly pleading with its own Chinese division to prevent a supply chain collapse that threatens to grind European auto production to a halt. The crisis, a direct result of the Dutch government’s intervention, has effectively turned the company against itself, showcasing a high-stakes gamble that appears to have spectacularly backfired.

The Hague’s move in September to seize control of Nexperia, a critical supplier of basic automotive chips, was framed as a necessary step to safeguard Europe’s economic security and technological sovereignty from Chinese influence, reportedly under pressure from the United States. The Dutch government argued it needed to prevent the loss of essential “technological knowledge and capabilities.”

However, Beijing’s response was swift and severe. On October 4, it imposed targeted export controls, effectively cutting off the flow of Nexperia’s China-manufactured semiconductors to the rest of the world. This has created a critical bottleneck for the global auto industry, which relies heavily on these components for numerous vehicle functions.

The unintended consequences of the Dutch government’s power play are now hitting home. In an open letter, Nexperia warned that its customers are facing “imminent production stoppages” and urged its Chinese partner to “take immediate steps to restore predictable and established supply flows.” The letter highlights a desperate situation, revealing that multiple attempts to re-establish dialogue have been met with no “meaningful response.”

Nexperia’s Chinese parent company, Wingtech Technology, has placed the blame squarely back on the Dutch authorities. Wingtech stated that the government’s seizure of control “is the direct cause of today’s instability and disorder in the global semiconductor supply chain.” Their message is clear: stability will not be restored until the situation is rectified. Wingtech warned that without a resolution, “Automakers’ production and delivery schedules may be forcibly adjusted,” and the resulting instability could jeopardize industrial production across Europe.

The corporate civil war has escalated to the courts, with a Wingtech subsidiary appealing a Dutch court decision that suspended Nexperia’s CEO and transferred share control, calling the move a reflection of a “geopolitical power struggle.”

While a recent suspension of the government’s order was seen as a step toward de-escalation, allowing some chips to leave China, Nexperia’s letter confirms the relief was short-lived and the supply chain remains critically fractured. Analysts warn that the ongoing dispute could not only impact vehicle production this quarter but may also force the European auto industry into a painful long-term reassessment of its deep-rooted dependence on the Chinese supply chain.