China Resists Nationalization of Semiconductor Giant Nexperia by the Netherlands
On 30 September 2025, the Dutch Government invoked the ‘Availability of Goods Act’ that came into effect during the Cold War Era, to seize control of the Chinese-owned chip maker Nexperia, in the name of safeguarding supply of seminconductors. The chips produced by Nexperia go mainly into vehicles and auto makers in Europe and Japan watched the conflict with wariness as their factories need the Nexperia chips to run.
The Chinese Government declared the nationalization of assets as illegal and the management of Nexperia in China directed its workers to stop taking orders from the HQ in the Netherlends. On 14 October 2025, the Chinese Government announced a ban of exports on Nexperia chips. The dispute is expected going to negatively impact the Global Supply Chain (#GSC) for automobiles.
“The situation could soon lead to significant production restrictions – or even a stop in production – if the interruption of Nexperia chip deliveries cannot be resolved in the short term.”
German Car Trade Association (VDA)
“The chips manufactured by the affected manufacturers are important parts used in electronic control units, etc, and we recognise that this incident will have a serious impact on the global production of our member companies. We hope that the countries involved will come to a prompt and practical solution.”
Japan Auto Manufacturers Association
The Dutch Government revealed it acted under pressure from the Trump Administration. As trade tensions between US and China escalate, the US placed Wingtech on its ‘controlled entity list’, painting it as a potential national security risk. Over the past few weeks, the US and China have exchanged a series of tit-for-tat moves long after Trump’s #tariffs tactics have extended into the technology sphere, while dangling the possibility of a Trump-Xi Meet in South Korea on the sidelines of the APEC Summit 2025.
It is to be recalled that Chinese company Wingtech acquired Nexperia in 2019. Previously, Nexperia was owned by NXP Semiconductors. Nexperia manufactures mostly chips needed in automobiles and electric appliances. Most of the chips are etched in the Netherlands, then shipped to China for packaging. Previously, the US enacted the #CHIPS Act in a bid to claw back control of the semiconductor industry.
Based on certain estimates, Nexperia controlled nearly 40% of the basic discrete electronic components, involving diodes, transistors, rectifiers, in the automotive market. Several other manufacturers — such Infineon Technologies, Mitsubishi Electric, NXP Semiconductors, ROHM Semiconductor, STMicroelectronics, Toshiba Electronic Devices, Vishay Intertechnology — could potentially step in to fill the supply gap. However, a period of disruption is to be expected as chip makers rejig their assembly lines and production capacity.
On 23 October 2025, Nexperia China resumed the supply of chips to local distributors only. As a extra measure, all purchases will have to paid in Chinese yuan as well, to minimize the possibility of export.
Trade analysts that the US and China are flexing their muscle to be in ‘a position of strength’ before the next round of negotiations and a showdown on the horizon. The Nexperia card comes after China up the ante with its #RareEarths card. Nevertheless, during a recent press conference after the signature of the US-Australia #CriticalMinerals Framework Agreement, Trump expressed hope for a positive outcome when he next meets Xi.