Economy

EU Secures Nexperia Chip Deal: How Europe Is Fighting Back Against Supply Chain Vulnerabilities

EU says Nexperia dispute with China “beginning to resolve” after chip export restrictions eased, highlighting supply chain risks.

byAndres Castro

November 14, 2025, 12:24 PM

A macro photo of a green circuit board showing Nexperia HC4066, Jabbar AHCT125, and TI LC04A microchips.

A macro shot of a green PCB with Nexperia, Jabbar, and Texas Instruments components. By Remus Rigo / Shutterstock.com.

Executive Summary

The dispute over Dutch chipmaker Nexperia, which led to Chinese chip export restrictions, is “beginning to be resolved” with crucial chips now being supplied to car manufacturers.

The Nexperia incident and similar past events underscore the critical lesson that global dependencies on non-EU countries for components like gas, raw materials, and chips can be “weaponised.”

The European Commission is developing a new economic security doctrine and pursuing a “de-risking” strategy to secure critical components, stabilize supply chains, and ensure unified export controls across the EU.

The Story So Far

The EU’s current actions, such as the Dutch government’s takeover of Nexperia, are driven by growing concerns over global dependencies, where critical components and technologies can be “weaponised” by non-EU countries, posing national security and economic risks. This vulnerability, following past experiences with Russian gas and rare-earth exports, has prompted the EU to pursue a “de-risking” strategy and develop a unified economic security doctrine to safeguard critical supply chains and prevent the transfer of sensitive technology.

Why This Matters

The partial resolution of the Nexperia chip dispute, which had seen China restrict exports, offers immediate relief to European industries like automotive, now receiving crucial chips. However, the incident serves as a stark warning to the EU about the fragility of global supply chains and the potential for critical dependencies to be “weaponised.” This has galvanized the EU’s push for a unified “de-risking” strategy to enhance economic security, secure vital components, and implement safeguards against future exploitation of its dependencies.

Who Thinks What?

EU Trade Commissioner Maroš Šefčovič views the Nexperia incident as a stark reminder of the complexities and risks in global supply chains, emphasizing that “everything can be weaponised,” and advocates for a unified European approach to economic security and de-risking from non-EU dependencies.

The Dutch government, through Minister Vincent Karremans, asserted that its takeover of Nexperia was necessary due to national security concerns about technology transfer to China, serving as a warning about Europe’s extensive dependencies on critical components.

China responded to the Dutch government’s action by implementing restrictions on chip exports, but later agreed to take “appropriate measures” to ensure trade from Nexperia’s facilities resumed, signaling a willingness to ease tensions following industrial impact.

EU Trade Commissioner Maroš Šefčovič has indicated that the dispute surrounding Dutch chipmaker Nexperia is “beginning to be resolved,” while cautioning that the incident underscores critical lessons about global dependencies, stating that “everything can be weaponised.” The comments, made in an exclusive interview with Euronews, follow a period of heightened tensions between the European Union and China over control of the company and its products, which led to Chinese restrictions on chip exports.

The Nexperia Standoff

The Nexperia incident began on September 30 when the Dutch government took control of the chipmaker, citing national security concerns. The Hague feared the company would be dismantled and relocated to China, potentially transferring sensitive technology. This action prompted a firm response from Beijing, which implemented restrictions on chip exports, raising concerns across Europe about potential shortages, particularly for the automotive industry.

The impasse began to ease on October 30, following a meeting between Chinese and United States representatives in South Korea. A White House statement confirmed that China was taking “appropriate measures to ensure trade from Nexperia’s facilities in China resumes.” Šefčovič affirmed that car manufacturers and spare parts producers are now receiving these crucial chips, though he noted that a full resolution is still underway.

Lessons in Economic Security

Šefčovič highlighted the Nexperia episode as a stark reminder of the complexities and risks inherent in global supply chains, particularly concerning critical dependencies on non-EU countries. He drew parallels to previous vulnerabilities, stating, “It started with [Russian] gas, then it continued with critical raw materials and high and low-end chips. It can all be weaponised.” Vincent Karremans, the Dutch minister involved in the takeover, echoed these sentiments, asserting that the move was necessary and served as a warning about Europe’s extensive dependencies.

The incident is the latest in a series of disputes between China and the EU over strategic components, which are increasingly seen as tools for economic pressure. Following weeks of industrial impact, the EU has secured a deal with China to ease restrictions on some rare-earth exports, reflecting ongoing efforts to manage these strategic trade relationships.

EU’s De-risking Strategy

In response to these vulnerabilities, the European Commission is developing a new economic security doctrine, expected to be presented before the end of the year. Šefčovič emphasized the need for a unified European approach to secure critical components and stable supply chains amidst global competition. He suggested that the EU could learn from countries like Japan, which stockpile critical raw materials, technologies, and chips.

The EU is actively pursuing a policy of “de-risking” rather than “de-coupling” from China. This strategy aims to maintain trade ties while implementing safeguards in areas deemed strategically vital for the EU and closing loopholes in the single market. Šefčovič underscored that effective economic security and export controls require harmonious, homogeneous application across the EU to prevent exploitation of the system and protect the European economy.