Dutch chipmaker issues urgent plea to its China unit
This photo shows a general view of the Nexperia headquarters in Nijmegen on November 6, 2025.
John Thys | Afp | Getty Images
Dutch chipmaker Nexperia has publicly called on its China unit to help revitalize its supply chain operations. open letter It says customers across industries are reporting “impending production disruptions.”
Nexperia’s Dutch unit said in a statement on Thursday that its open letter came after “repeated attempts to communicate directly through traditional channels” but had received “no meaningful response”.
The letter marks the latest twist in a long-running saga. threatened global automotive supply chains and sparked a bitter fight between Amsterdam and Beijing over technology transfer.
“We welcomed the commitment of the Chinese authorities to facilitate the resumption of exports from Nexperia’s China facility and our subcontractors and to ensure the continued flow of our products to global markets,” Nexperia’s Dutch unit said in the letter. he said.
“However, customers across different industries are still reporting imminent production shutdowns. This situation cannot continue,” they added. The group called on the leadership of Nexperia’s entities in China to take steps to re-establish existing supply flows without delay.
Wingtech, the Chinese company that owns Netherlands-based Nexperia, did not immediately respond to CNBC’s request for comment Friday morning.
In this photo illustration, the logo of semiconductor manufacturer Nexperia is displayed on a screen.
VCG | Visual China Group | Getty Images
Nexperia produces billions of basic chips (transistors, diodes and power management components) that are manufactured in Europe, assembled and tested in China, and then re-exported to customers in Europe and elsewhere.
The chips are relatively low-tech and inexpensive but are required in almost every device that uses electricity. In cars, these chips are used to connect the battery to engines, lights and sensors, braking systems, airbag controls, entertainment systems and power windows.
How did we get here?
This began in September, when the Dutch government invoked a Cold War-era law to effectively seize control of Nexperia. The highly unusual move was reportedly made after the United States expressed security concerns.
Beijing responded by moving to block its products from leaving China, causing increased alarm among global automakers facing shortages of the chipmaker’s components.
However, with an apparent delay last week, the Dutch government It said it had suspended state involvement in Nexperia after talks with Chinese officials. It was thought at the time that this could put an end to the dispute and pave the way for the restoration of normal supply chains.
Rico Luman, senior sector economist responsible for transportation and logistics at Dutch bank ING, said it remains unclear how long the situation will last.
“The measures implemented to seize the Dutch Nexperia subsidiary have been lifted, but discussions are still ongoing to re-establish the corporate structure and relations with parent company Wingtech,” Luman told CNBC via email. he said.
“This is not only about the supply of finished chips, but also the supply of wafers from Europe to the Chinese enterprise,” Luman said, adding that companies including Japan. Nissan and German car supplier Bosch’s It is among the companies warning of the impending shortage.
Nissan sign at a dealership in Richmond, California, USA on Friday, June 21, 2024.
Bloomberg | Bloomberg | Getty Images
Spokesperson of the German Automotive Industry Association (VDA) volkswagen, Mercedes-Benz Group And bmw Alongside hundreds of others, he warned of increasing risks to supply “particularly for the first quarter” of 2026.
“In recent weeks, the German automotive industry has managed to keep production largely stable, thanks to intensive efforts,” a VDA spokesperson told CNBC via email. he said.
“However, disruptions in the supply chain of Nexperia parts caused by political interference remain fundamentally unresolved. Component availability remains uncertain,” they added.
ING’s Luman said the situation at Nexperia is somewhat comparable to China’s rare earth export controls.
“China’s position looks strong again, as European manufacturers are dependent on supply. Compared to rare earths, it is not fully transparent which buyer may qualify for which chip supplies,” Luman said.
— CNBC’s Annika Kim Constantino contributed to this report.
