On November 14, 2025, Dutch-headquartered chipmaker Nexperia confirmed that its global supply chain remains in disarray, despite recent moves by Chinese authorities to relax export controls on semiconductors. While the easing of restrictions has allowed some exports to resume from Nexperia’s Chinese facilities and subcontractors, the company emphasized that this is far from a full recovery. "Nexperia hasn’t stopped the shipping of wafers altogether," the company stated, clarifying that its sites outside China continue to operate as usual. However, it acknowledged that "dedicated teams are working continuously to identify and implement viable paths forward."
The roots of the crisis stretch back to September 2025, when the Dutch government, citing national security concerns, intervened under a special law to block or reverse company decisions at Nexperia. This intervention was designed to safeguard chip supplies for Dutch and European industries, as reported by DutchNews.nl. Nexperia, owned by China’s Wingtech Technology, is a key player in the global semiconductor industry, with major production sites in China, the Netherlands, Germany, and the UK, and wafer testing and assembly operations in Malaysia and the Philippines.
Beijing’s response was swift and severe: it imposed export restrictions on Nexperia chips, threatening to derail European car production. The impact was immediate. According to Automotive Logistics, automakers including BMW, Volkswagen, and Volvo Cars warned of chip shortages as early as October. Stellantis, another major automotive group, set up a "cross-functional war room" to monitor the situation daily. Meanwhile, Nissan announced production cuts for its top-selling Rogue model in Japan due to limited chip supply from Nexperia, as reported by Reuters.
The crisis has not spared Honda either. In a recent Q&A following the release of Honda’s H1 2025 financial results, Noriya Kaihara, the company’s director and executive vice president, addressed the "supply challenges for semiconductors" resulting from the Nexperia dispute. He explained that Honda had to make "restrictions and adjustments" to its North American production, including halting operations in Mexico since October 28 and reducing daily output in Canada and the US. Honda now forecasts a reduction of 110,000 units in total production, with estimated financial losses around ¥150 billion (approximately $969 million), all due to the ongoing semiconductor shortage.
At the heart of the standoff is a deepening rift between Nexperia’s Dutch management and its Chinese subsidiaries. According to Nexperia’s headquarters, its Chinese entities have "stopped operating within the established corporate governance framework and are ignoring the lawful instructions of Nexperia B.V.'s global management." Allegations include the refusal of payments for wafers, misappropriation of corporate seals, unauthorized bank accounts, and the dissemination of letters containing false information. The Chinese subsidiary, on the other hand, claims that Dutch management has blocked wafer supplies, a charge European management firmly denies. They insist that Nexperia China possesses "a sufficient amount of wafers and finished products available to continue operations for several months."
This internal discord is layered atop the broader geopolitical tensions. The Dutch government’s intervention stemmed from fears of asset diversion and threats to Europe’s chip supply, as noted by On the Dash. China’s export ban, in retaliation, compounded the disruption. Beijing has voiced its displeasure with Dutch Economic Affairs Minister Vincent Karremans, who told The Guardian he hoped the dispute would "serve as a wake-up call" about the perils of relying on a single country for critical technology and raw materials. A Chinese government spokesperson responded with unusually strong language: "China expresses extreme disappointment and strong dissatisfaction with such remarks that confuse right and wrong, distort facts and persist in a single-minded course. The profound lesson this semiconductor supply chain crisis has taught the world is that administrative measures should not be used to improperly interfere with corporate operations."
Despite the heated rhetoric, both sides have begun taking steps toward resolution. Earlier in November, the Dutch government expressed optimism that chip deliveries from Nexperia’s Chinese factories would resume soon following "constructive" talks with Chinese authorities. Nexperia itself is implementing short-term workarounds and has announced plans for phased capacity expansions through 2026 to stabilize supply, according to On the Dash. Meanwhile, the Dutch Ministry of Economic Affairs has dispatched a high-level delegation to Beijing this week, hoping to negotiate a path forward. As Reuters reports, the Netherlands is keen to resolve the standoff, with a delegation expected in China during the week of November 18, 2025.
The crisis has also underscored the fragility of the global semiconductor supply chain and the ripple effects of geopolitical disputes. Nexperia’s chips are vital to the automotive sector, with its Chinese site alone producing around 50 billion chips annually. The disruption has prompted industry analysts to stress the importance of alternative sourcing strategies to mitigate the risks of future shocks—whether from political intervention or corporate infighting.
Adding another layer to the already complex situation, broader EU-China relations are under strain. The European Union, feeling the pinch from China’s chokehold on rare earth minerals and the Nexperia crisis, has reportedly shifted to "de-escalation mode" in its public rhetoric. According to the South China Morning Post, Brussels is working to secure more stable export licenses for critical minerals, essential for everything from electric vehicles to wind turbines. Months of delicate negotiations may soon yield a general licensing procedure allowing one-year export licenses, a significant step up from the current three-month regime.
Yet, not all Dutch technology companies are feeling the pinch. ASML, the world’s leading chip-gear maker, appears insulated from the turmoil—at least for now. In a Dutch television interview on November 17, ASML CEO Christophe Fouquet said, "It will not affect our business in the short term," adding that he believes "the worst of the crisis is over." Fouquet also stressed the importance of dialogue before escalation, remarking, "What is key on this topic is to talk before you escalate and maybe this time it went the other way around."
As negotiations continue and both sides walk a diplomatic tightrope, the world is watching closely. The Nexperia dispute has not only snarled supply chains and cost automakers dearly, but also laid bare the vulnerabilities of globalized technology industries. For now, with Dutch and Chinese officials locked in talks and companies scrambling for solutions, the automotive world—and the wider tech sector—can only hope for a swift and lasting resolution.
