World

China Accuses Netherlands of Semiconductor Supply Chain Sabotage Amid Nexperia Dispute

China accuses Netherlands of inaction over Nexperia, threatening semiconductor supply. Dutch dispute continues.

November 4, 2025, 9:41 AM

Aerial view of the tall, dark Nexperia headquarters building with a massive green sloped roof structure at Novio Tech Campus in Nijmegen, Holland.

An aerial view of the Nexperia headquarters, home to the 52Nijmegen office, located in Nijmegen, Holland. By Aerovista Luchtfotografie / Shutterstock.com.

Executive Summary

China’s commerce ministry accuses the Netherlands of failing to constructively resolve the dispute over the Dutch government’s seizure of chipmaker Nexperia, warning of further disruptions to the global semiconductor supply chain.

The dispute began after the Dutch government intervened in Nexperia due to its Chinese parent company, leading China to impose export controls that threaten European automotive assembly lines as 70% of Nexperia’s European-made chips are packaged in China.

Both the Netherlands and China are engaged in ongoing discussions to find a solution, with international involvement including talks between President Donald Trump and Chinese President Xi Jinping, and EU trade chief Maros Sefcovic noting progress.

The Story So Far

The current dispute stems from the Dutch government’s intervention in late September to seize control of chipmaker Nexperia, citing concerns related to its Chinese parent company, Wingtech. In retaliation, Beijing imposed export controls on Nexperia products manufactured in China, creating immediate ripple effects across the global industry. This action threatens international semiconductor supply chains, particularly for European automotive suppliers, because Nexperia, a key producer of basic chips, relies on China for packaging approximately 70% of its products before global distribution.

Why This Matters

The ongoing dispute between the Netherlands and China over the Dutch government’s seizure of chipmaker Nexperia is directly impacting the global semiconductor supply chain, threatening European automotive production lines and worker furloughs due to Chinese export controls. Beijing’s accusation of Dutch inaction suggests a potential deepening of these disruptions, underscoring the broader geopolitical challenges when national security concerns intersect with critical technology trade, despite international efforts involving President Trump and EU officials to find a resolution.

Who Thinks What?

China’s commerce ministry accuses the Netherlands of failing to work constructively, interfering in Nexperia’s internal affairs, and warns that continued inaction will deepen adverse impacts on the global semiconductor supply chain.

The Dutch economic affairs ministry states that discussions with Chinese authorities and international partners are ongoing, aiming for a constructive solution beneficial to Nexperia and both economies.

International partners, including the US and EU, along with European automotive suppliers, seek a resolution to ensure the resumption of trade from Nexperia’s facilities in China and prevent further disruptions to the global semiconductor supply chain.

China’s commerce ministry on Tuesday accused the Netherlands of failing to work constructively with Beijing to resolve a dispute over the Dutch government’s seizure of chipmaker Nexperia, warning that continued inaction would lead to further disruptions in the global semiconductor supply chain. This accusation comes as European automotive suppliers seek exemptions from Chinese export restrictions on Nexperia products, which were imposed shortly after the Dutch government took control of the company on September 30.

Background to the Dispute

The Dutch government intervened in Nexperia’s governance in late September, citing concerns related to its Chinese parent company, Wingtech. This move prompted Beijing to implement export controls on Nexperia products manufactured in China, creating immediate ripple effects across the global industry.

Nexperia, a significant producer of basic chips used in automobiles, manufactures most of its chips in Europe, but approximately 70% of these are packaged in China before global distribution. The Chinese export controls have already threatened to halt assembly lines and lead to worker furloughs in Europe, highlighting the fragility of international supply chains.

China’s Stance and Demands

Beijing’s commerce ministry stated that while China has acted responsibly by offering export exemptions, the Netherlands has not reciprocated. The ministry urged the Dutch government to cease “interfering” in Nexperia’s internal affairs and to engage in a “constructive manner” to find a resolution.

In an official statement, the ministry asserted that the Netherlands’ “unilateral course” without concrete action would “inevitably deepen the adverse impact on the global semiconductor supply chain.” It emphasized that neither China nor the global industry desires such an outcome.

Dutch Response and International Involvement

A spokesperson for the Dutch economic affairs ministry, which initiated the intervention, confirmed that discussions between both governments are ongoing. The spokesperson stated that the Netherlands remains in contact with Chinese authorities and international partners, aiming for a constructive solution beneficial to Nexperia and both economies.

The trade dispute has also drawn international attention. Following talks between President Donald Trump and Chinese President Xi Jinping, the White House announced last week that Beijing would “take appropriate measures to ensure the resumption of trade from Nexperia’s facilities in China.” Additionally, EU trade chief Maros Sefcovic noted “progress” in discussions involving Dutch and Chinese governments, though he did not provide further details.

Outlook on Resolution

The Chinese commerce ministry expressed hope that the Netherlands would consider bilateral ties and broader China-EU trade relations during negotiations. The ongoing accusations of inaction underscore the challenges in reaching a long-term solution for the ownership and operational control of Nexperia, a key player in the global automotive chip supply chain.