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30 November 2025

Nexperia Chip Dispute Sparks Global Supply Chain Fears

A standoff between Dutch chipmaker Nexperia and Chinese parent Wingtech threatens critical industries as accusations and export bans unsettle global supply chains.

The simmering dispute between Dutch semiconductor producer Nexperia and its Chinese parent company Wingtech has reached a fever pitch, casting a long shadow over global supply chains that depend on the company’s chips. As of late November 2025, the conflict has not only exposed deep rifts within the multinational firm but has also sent ripples across industries ranging from automotive to defense, raising urgent questions about the future of cross-border technology ownership and economic security.

At the heart of the dispute lies a tangled web of governmental intervention, corporate mistrust, and strategic maneuvering. The saga began in September 2025 when, citing a Cold War-era law, the Dutch government seized control of Nexperia from Wingtech on grounds of national economic security. This dramatic move was followed by an Amsterdam court’s decision to strip Wingtech of its ownership rights, effectively placing Nexperia under Dutch control. According to Reuters, this intervention was intended to safeguard critical supply chains and prevent foreign influence over a company that, as heise reports, supplies over 85% of the European automotive sector, the entirety of medical device manufacturers, and the whole defense industry with crucial chips.

The Dutch government’s actions did not go unanswered. Beijing, in a swift retaliatory move, imposed an export ban on Nexperia’s finished products on October 4, 2025. This sudden halt triggered alarms throughout the global automotive industry, with manufacturers such as Nissan and Bosch warning of potential production stoppages. As reported by heise, the disruption underscored Nexperia’s pivotal role in global supply chains and the vulnerability of industries reliant on its components.

Thankfully, the export restrictions were eased in early November following a fresh round of diplomatic talks. The Dutch government also suspended its direct intervention, signaling a tentative thaw in relations. However, the original court ruling that removed Wingtech’s control remains in effect, and the fundamental dispute over who truly holds the reins at Nexperia is far from settled. A spokesperson for Nexperia’s European headquarters acknowledged the impasse, stating, “We need to find a way first to talk to one another constructively.”

Yet, as November drew to a close, the war of words only intensified. On November 30, 2025, Wingtech and Nexperia’s Chinese unit accused the Dutch business of plotting to shift its supply chain away from China—a move they characterized as both secretive and destabilizing. In a sharply worded statement, Nexperia China demanded the Dutch side “abandon improper intentions to replace Chinese capacity,” specifically calling out a $300 million plan to expand a Malaysian plant. The Chinese unit further alleged that there was an internal goal to source as much as 90% of Nexperia’s production outside of China by mid-2026, a claim that, if true, would mark a dramatic reorientation of the company’s manufacturing footprint.

Relations between the Dutch and Chinese sides have deteriorated to the point where even basic communication appears to be fraught. Nexperia headquarters in the Netherlands claimed in an open letter published on November 28, 2025, that repeated attempts to engage with its Chinese unit had failed. In response, Nexperia China countered that the Dutch had deliberately stifled dialogue by deleting Chinese employees’ email accounts and terminating their access to IT systems. The Chinese side accused its European colleagues of “engineering a breakup,” further fueling mistrust and speculation about the company’s future direction.

Wingtech, for its part, warned that the unresolved control issue is “far more than a simple corporate control dispute.” In a statement quoted by Reuters, the company cautioned, “It is a major issue with potential implications for hundreds of thousands of customers and the industrial (supply) chain security of dozens of countries.” The specter of renewed supply chain disruptions looms large, with Wingtech insisting that shortages could recur at any time if the standoff is not resolved.

Industry observers are watching the situation with growing concern. Rico Luman, a transport and logistics expert at Dutch bank ING, told CNBC that the duration and outcome of the crisis remain highly uncertain. He drew parallels between the Nexperia saga and China’s broader export controls on rare earth elements, noting that the current standoff also affects the flow of wafers from Europe to Nexperia’s Chinese operations. “It is open how long the situation will continue,” Luman remarked, underlining the complexity of restoring both corporate structure and international supply relations.

The German Association of the Automotive Industry (VDA) added its voice to the chorus of warnings, highlighting increased supply risks for the first quarter of 2026. Despite intensive efforts in recent weeks to keep production lines running, the VDA stressed that the underlying supply chain disruptions caused by political interventions have not been fully resolved. The availability of Nexperia components, it warned, remains uncertain—a precarious situation for industries that rely on just-in-time manufacturing and minimal inventory buffers.

For Nexperia itself, the stakes could hardly be higher. The company is not only a linchpin in European industry but also a test case for how governments, multinational corporations, and global supply chains navigate an era of rising geopolitical tension. The accusations flying between the Dutch and Chinese factions—ranging from secretive supply chain shifts to IT system lockouts—reflect deeper anxieties about control, trust, and the future of technological sovereignty.

Meanwhile, both the Chinese and Dutch governments have urged a company-led resolution, but with each side accusing the other of stonewalling and sabotage, the path forward appears anything but straightforward. The court ruling that stripped Wingtech of control still stands, even as diplomatic overtures have temporarily eased the most acute supply disruptions. The underlying question—who will ultimately direct Nexperia’s strategy and operations—remains unanswered.

As the world watches, the outcome of the Nexperia-Wingtech standoff may well set a precedent for how similar disputes are handled in the future. With hundreds of thousands of customers and dozens of countries potentially affected, the resolution—or lack thereof—will reverberate far beyond the boardrooms of Amsterdam and Beijing. For now, uncertainty reigns, and industries dependent on Nexperia’s chips can do little but brace for further turbulence as the battle for control plays out on the global stage.

The coming months will be critical in determining whether dialogue and compromise can prevail over confrontation and division—or whether the world’s supply chains are in for another round of shocks.