Beijing has sharply criticized the Netherlands for clinging to control over Chinese-owned chipmaker Nexperia, labeling the move a stubborn error that’s rattling global semiconductor supplies.
The Chinese Ministry of Commerce issued a pointed statement on Wednesday, urging Dutch authorities to swiftly correct their “mistakes” and end what it calls improper interference.
The dispute has already sent ripples through the automotive world, where even basic chips can grind production to a halt.
Japanese giants Honda and Nissan earlier slashed output due to shortages linked to the feud, proving that in the chip game, no one escapes unscathed when supplies dwindle.
Nexperia, headquartered in the quaint Dutch city of Nijmegen, specializes in the unglamorous but essential low-end semiconductors that keep cars running and gadgets humming.
Its Chinese parent, Wingtech, acquired the company years ago, turning it into a key player in a market where reliability trumps flashiness.
Trouble brewed in September when the Netherlands invoked a dusty Cold War-era law to block major decisions at Nexperia without government nod.
Officials cited fears that Wingtech might shift European production eastward, jeopardizing local tech know-how and chip availability.
The U.S. had quietly warned that Nexperia risked landing on its sanctions list unless the Chinese CEO, Zhang Xuezheng, stepped aside.
The Dutch insist their actions were homegrown, though timing raised a few eyebrows across the Atlantic.
A court soon ousted Zhang over alleged mismanagement, a ruling that stands firm even now.
Beijing retaliated by halting exports of finished chips from Nexperia’s Chinese facilities, a move that quickly pinched global inventories.
Carmakers scrambled, and production lines stuttered.
Yet, in a nod to practicality, China later exempted civilian-use chips from restrictions to ease the chaos.
The Dutch suspended their control order last month after “constructive” talks, signaling a thaw.
But Beijing finds this half-measure insufficient, pointing out the court decision lingers like an uninvited guest.
The Commerce Ministry expressed bafflement that the Netherlands remains “unmoved” amid industry jitters.
It accused the Dutch of showing little regard for global supply chain security, stubbornly holding ground.
Talks between Wingtech and court-appointed overseers have begun, offering a glimmer of negotiation.
Still, with wafers and payments caught in crossfire between Dutch and Chinese operations, full harmony seems elusive.
Nexperia churns out billions of these foundational chips annually, many assembled in China before heading worldwide.
Disruptions here remind everyone how interconnected – and fragile – the semiconductor web truly is.
As the year closes, Beijing’s call for correction underscores that in tech geopolitics, even small chips can spark big diplomatic sparks.
Neither the Dutch Foreign Ministry nor Nexperia rushed to comment on the latest salvo.
The standoff continues, with supply chains holding their breath for a resolution that benefits all sides.
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