Senior Dutch officials are preparing for a critical diplomatic mission to Beijing next week, hoping to resolve a months-long standoff over the chip manufacturer Nexperia that has sent shockwaves through global automotive supply chains. The dispute, which erupted in late September and escalated into a high-stakes geopolitical confrontation, now stands at a pivotal moment as both sides signal cautious willingness to negotiate.
At the heart of the crisis is Nexperia, a Netherlands-based semiconductor company owned by Chinese technology conglomerate Wingtech. The company produces billions of chips annually, many of which are vital for basic automotive functions—think airbags, lighting, and window controls. According to The Guardian, Dutch Minister of Economic Affairs Vincent Karremans announced on November 13, 2025, that a high-level delegation from his ministry would travel to Beijing early the following week to continue diplomatic efforts and seek a "mutually acceptable solution." The trip is expected to take place on Monday or Tuesday, November 17 or 18.
The roots of the conflict trace back to late September 2025, when the Dutch government seized operational control of Nexperia. Officials cited concerns over potential technology transfers to its Chinese parent, Wingtech, and broader national security risks. This extraordinary intervention gave the Dutch government veto power over major strategic decisions at the company, effectively sidelining Wingtech from directing its subsidiary’s operations. Minister Karremans, in an interview with The Guardian, defended the move as a necessary "wake-up call," stating, "I would make the same decision again," but he also acknowledged the urgent need to restore chip exports and repair fractured supply chains.
Beijing’s response was swift and forceful. Chinese authorities imposed export controls on products manufactured at Nexperia’s Chinese facilities, effectively blocking the flow of chips to Europe and disrupting car production lines across the continent. According to The Financial Times, European carmakers described the resulting shortage as "devastating," warning that global production lines could grind to a halt within weeks if the impasse continued. An executive at one major carmaker, speaking to the FT, put it bluntly: “Our plea is that Nexperia China and Nexperia EU come together and actually start to resume normal operations because what’s happening is just inexplicable and it is devastating for hundreds of industries.”
While China lifted its export ban in early November, offering a glimmer of hope, the situation remains precarious. The core problem has shifted from international restrictions to an internal feud within Nexperia itself. The Dutch arm of the company has reportedly stopped sending silicon wafers—critical for chip assembly—to its Chinese subsidiary, exacerbating the shortage. The supply chain, which typically sees wafers manufactured in the UK, Netherlands, and Germany before being shipped to China for assembly and re-export, has become a bottleneck. Supplies at the Chinese facility are expected to last only until early to mid-December, industry officials warn.
The reasons for this internal rift are as complex as the chips themselves. The Dutch government’s intervention also saw the removal of Nexperia’s Chinese chief executive, Zhang Xuezheng, who is also the main shareholder of Wingtech. Dutch courts suspended him over allegations of “serious governance shortcomings” and mismanagement, creating a leadership vacuum at a time when the company desperately needs stable direction. Nexperia Netherlands cited payment refusals, unauthorized bank accounts, and the dissemination of "unauthorized letters with false information" as reasons for halting further wafer supplies to China. The Dutch economy ministry clarified, “There have not been any export controls imposed by the Netherlands or Brussels at Nexperia or other companies regarding this matter now or in the past.”
As the crisis deepened, European governments and the automotive sector scrambled to adapt. Major suppliers like Bosch and ZF Friedrichshafen prepared for possible production stoppages, even applying for short-time work in anticipation. Some, such as Hella and Aumovio, managed to secure new supply agreements or export exemptions, allowing them to maintain production and fulfill delivery commitments for now. Truck manufacturer Daimler Truck reported sourcing semiconductors through dealers to manage the shortage. Volkswagen, meanwhile, described the situation as “dynamic and uncertain,” noting that while production at its German plants had not yet been affected, future disruptions could not be ruled out.
The broader context is one of mounting global anxiety over the security and resilience of technology supply chains. The Nexperia dispute has exposed Europe’s vulnerability to disruptions in the flow of critical components from China and highlighted the geopolitical risks of foreign ownership in strategically important industries. Western governments have grown increasingly wary of Chinese technological ambitions, and the Netherlands’ move to assert control over Nexperia reflects a wider trend of tightening oversight and export controls across the continent. Chinese officials, for their part, have sought to rally international support to pressure the Dutch government into reversing its position, underscoring the dispute’s significance in the ongoing competition for advanced technology supremacy.
Despite the recent easing of Chinese export restrictions, Dutch officials remain wary. Minister Karremans emphasized that the government is closely monitoring whether trade from Nexperia’s Chinese facilities has fully resumed and that further actions will depend on the reliable resumption of these supplies. “We are moving in the right direction but it is not solved yet,” the European carmaker association Acea stated, echoing the cautious optimism shared by many in the industry.
The upcoming negotiations in Beijing carry implications that stretch far beyond Nexperia. As Reuters noted, how the Netherlands and China resolve this dispute could set precedents for how Western nations handle Chinese ownership of strategically important technology firms. European governments are watching closely, mindful that the outcome could influence their own approaches to balancing economic ties with China against national security imperatives. The Dutch delegation’s trip signals a commitment to continued engagement, while China’s partial relaxation of export controls suggests an understanding of the high costs of prolonged confrontation.
For now, the world waits to see whether these tentative steps toward compromise will be enough to avert a broader supply chain crisis and restore stability to a sector that underpins much of the global economy. The stakes could hardly be higher, and the coming days in Beijing may well determine the future direction of Europe’s—and perhaps the world’s—semiconductor landscape.
