This photo shows a panoramic view of Nexperia’s headquarters in Nijmegen on November 6, 2025.
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Dutch chipmaker Nexperia has publicly called on its Chinese unit to help restore supply chain operations, warning in an open letter that customers across a range of industries are reporting “imminent production disruptions.”
Neexria’s Dutch arm said on Thursday that the open letter followed “repeated attempts to establish direct communication through traditional channels” but there had been no “meaningful response”.
The letter marks the latest development in a long-running saga that has threatened global auto supply chains and sparked a bitter dispute between Amsterdam and China over technology transfer.
Nexperia’s Dutch arm said in a letter that it “welcomed the commitment of the Chinese authorities to facilitate the resumption of exports of Nexperia’s Chinese facilities and subcontractors and to enable the continued distribution of our products to the global market.”
“Despite this, customers across a variety of industries are still reporting impending production disruptions. This situation cannot continue,” they added. The group called on the leadership of Nexperia’s Chinese subsidiary to take steps to restore established supply flows without delay.
Wingtech, the Chinese company that owns Dutch-based NExperia, reportedly fired back Friday morning. According to Reuters, Wingtech accused its Dutch arm of trying to disenfranchise shareholders and push to establish supply chains outside China. CNBC also reached out to Wingtech for comment.
In this photo illustration, the logo of semiconductor manufacturer Nexperia is displayed on the screen.
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Nexperia manufactures billions of so-called foundation chips (transistors, diodes, power management components) that are produced in Europe, assembled and tested in China, and re-exported to customers in Europe and elsewhere.
This chip is relatively low-tech and inexpensive, but is required in almost every device that uses electricity. In cars, these chips are used to connect batteries to motors, lights and sensors, braking systems, airbag controllers, entertainment systems, and electric windows.
How did we get here?
The situation began in September when the Dutch government effectively took control of Nexperia by invoking a Cold War-era law. This highly unusual step was reportedly taken after the United States expressed security concerns.
The Chinese government responded by blocking its products from leaving the country, leading to alarm among global automakers as chipmakers faced component shortages.
However, the Dutch government announced last week that it had suspended state intervention in Nexperia following consultations with Chinese authorities. At the time, it was thought that this would end the conflict and pave the way for the restoration of normal supply chains.
Rico Luman, senior sector economist for transport and logistics at Dutch bank ING, said it remained unclear how long the situation would last.
“The measures imposed on the seizure of the Nexperia subsidiary in the Netherlands have been lifted, but discussions are still ongoing regarding the corporate structure and the repair of the relationship with parent company Wingtec,” Luhmann told CNBC in an email.
“This is not only a problem with the supply of finished chips, but also the supply of wafers from Europe to Chinese companies,” Luhmann said, adding that companies such as Japan’s Nissan and German auto parts supplier Bosch are among those warning of impending shortages.
A Nissan sign at a dealership in Richmond, California, USA on Friday, June 21, 2024.
Bloomberg | Bloomberg | Getty Images
Spokesperson of the German Automobile Industry Association (VDA). volkswagen, mercedes benz group and BMW It, among hundreds of other companies, warned of increased supply risks “particularly in the first quarter” of 2026.
“In recent weeks, the German auto industry has been able to maintain almost stable production due to intensive efforts,” a VDA spokesperson told CNBC in an email.
“However, the disruption in the Nexperia parts supply chain caused by political interference has not been fundamentally resolved. Parts availability remains uncertain,” they added.
ING’s Luhmann said Nexperia’s situation is somewhat similar to China’s rare earth export restrictions.
“China’s position appears to be strong once again as European manufacturers are dependent on supplies. As with rare earths, it is not completely transparent which buyers are entitled to which chip supplies,” Luhmann said.
— CNBC’s Annika Kim Constantino contributed to this report.
