According to Manufacturing.net, China’s Commerce Ministry said Tuesday that the Netherlands’ seizure of Chinese-owned chipmaker Nexperia has caused “chaos” in semiconductor supply chains that could threaten global auto production. The Dutch government took control of Nexperia on September 30 using its rarely invoked Goods Availability Act, citing national security concerns. In response, China initially blocked shipments from Nexperia’s plant in Dongguan but has since allowed exports to resume. The Netherlands also replaced Nexperia’s Chinese CEO Zhang Xuezheng with interim CEO Stefan Tilger. This follows the U.S. adding Nexperia’s parent company Wingtech Technology to its entity list in late 2024, with the Netherlands then taking control after the U.S. expanded restrictions to include Wingtech subsidiaries.
The Real Battle Behind the Chip War
Here’s the thing: this isn’t really about one company. Nexperia, acquired by partially state-owned Wingtech for $3.6 billion back in 2018, has become a pawn in a much larger geopolitical chess match. The Dutch are clearly responding to U.S. pressure after Washington expanded its entity list to include Wingtech’s subsidiaries. But China‘s playing hardball too – they immediately weaponized Nexperia’s Chinese factory exports as retaliation.
And let’s be honest, both sides are using “national security” as cover for what’s really about technological dominance. The Dutch ministry claimed Nexperia’s governance “posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge.” Translation: we don’t want China getting its hands on our chip expertise. Meanwhile, China’s calling it “chaos” while creating exactly that by blocking exports.
Automakers Are Stuck in the Middle
Global automakers like Ford are the collateral damage here. Nexperia’s Chinese unit said in late October that its Netherlands headquarters had suspended wafer supplies to its factory in China. That’s basically the semiconductor equivalent of cutting off flour to a bakery. No wafers, no chips. No chips, no cars rolling off assembly lines.
But here’s what’s interesting: the White House said China was moving to ease the export ban following Trump’s meeting with Xi Jinping in South Korea last week. So we’ve got this weird dance where both sides create crises then partially walk them back. The EU’s trade commissioner Maroš Šefčovič says talks are “progressing” and the Netherlands claims it wants a “constructive solution.” Sounds nice, but how long until the next flare-up?
Where Does This Leave Chip Manufacturing?
This whole mess exposes how fragile global semiconductor supply chains really are. One government action in Europe can immediately disrupt production in China, which then threatens manufacturing in America and beyond. We’re talking about chips that go into everything from cars to consumer electronics.
The bigger question is whether this accelerates the decoupling we’ve been seeing between Western and Chinese tech ecosystems. Companies are going to think twice about cross-border acquisitions and partnerships when they could get caught in geopolitical crossfire. And honestly, who can blame them? When your factory can get seized or your supply chains blocked with a single government decision, the risks start looking pretty overwhelming.
Basically, we’re watching the semiconductor industry become the main battlefield in the tech cold war. And if recent history is any guide, there will be plenty more “chaos” to come.
