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China Presses Netherlands Over Nexperia Dispute As Chip Supply Risks Persist

ByJolyen

Jan 2, 2026

China Presses Netherlands Over Nexperia Dispute As Chip Supply Risks Persist

China has called on the Netherlands to quickly reverse its actions against chipmaker Nexperia, warning that continued intervention is threatening stability in the global semiconductor supply chain and prolonging uncertainty for industries dependent on the company’s components.

Dutch Government Intervention Triggers Tensions

The dispute traces back to September, when the Dutch government invoked a Cold War-era law to effectively assume control over Nexperia, a semiconductor manufacturer headquartered in the Netherlands but owned by Chinese interests. The move followed reported security concerns raised by the United States.

After the intervention, China responded by restricting the export of Nexperia products from China. The decision quickly raised concerns among global automakers, who rely on the company’s chips for a wide range of vehicle systems.

Beijing Calls For Policy Reversal

On Wednesday, a spokesperson for Ministry of Commerce of the People’s Republic of China said the Netherlands should “immediately correct its mistakes” and remove barriers to restoring stability and security in the global semiconductor supply chain.

In a statement released by the ministry, the spokesperson criticized the Dutch government for what was described as a lack of response to growing industry concerns, saying the Netherlands had taken no substantive steps despite anxiety across the global market.

Dutch Response And Political Context

A spokesperson for the Dutch government was not immediately available for comment when contacted by CNBC on Wednesday. However, Dutch Economy Minister Vincent Karremans has repeatedly defended the government’s decision to intervene in Nexperia in recent weeks.

Nexperia’s Role In Global Manufacturing

Nexperia produces billions of so-called foundation chips, including transistors, diodes, and power management components. These chips are manufactured in Europe, assembled and tested in China, and then exported to customers across Europe and other regions.

Although relatively low-cost and low-tech, the components are used in nearly all electronic devices. In the automotive sector, they are critical for systems such as battery connections, motors, lighting, sensors, braking systems, airbag controllers, entertainment units, and electric windows.

Automakers Warn Of Ongoing Supply Risks

Industry groups say disruptions linked to Nexperia have yet to be fully resolved. Automakers including Nissan and German supplier Bosch have warned of potential component shortages.

Last month, a spokesperson for the German Association of the Automotive Industry, which represents companies such as Volkswagen, Mercedes-Benz Group, and BMW, told CNBC that supply risks remain elevated, particularly heading into the first quarter of 2026.


Featured image credits: Instagram

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Jolyen

As a news editor, I bring stories to life through clear, impactful, and authentic writing. I believe every brand has something worth sharing. My job is to make sure it’s heard. With an eye for detail and a heart for storytelling, I shape messages that truly connect.

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