TECHY QUANTUM — China accuses Netherlands of making “mistakes” over chipmaker Nexperia and urged the Dutch government to reverse its actions to ease growing strain on the global semiconductor supply chain.
The dispute, which has drawn in major economies and global automakers, underscores rising geopolitical tensions around technology transfer and supply security that could ripple through global markets.
The conflict centers on Nexperia, a Chinese owned semiconductor producer based in the Netherlands. In September, the Dutch government invoked a Cold War‑era law to effectively take control of the company after security concerns were raised by the United States.
China accuses Netherlands of making “mistakes” in handling the semiconductor maker and has blocked the export of products manufactured in China, putting added pressure on industries that depend on the firm’s components.
Nexperia manufactures so called foundation chips such as transistors and power management components that are crucial to everything from automotive electronics to consumer devices.
The Dutch intervention was framed by The Hague as a necessary step to protect national and allied security interests. But China has argued that the move oversteps and harms global industry stability.
“What is perplexing is that, faced with the anxiety and unease of the global industry, the Netherlands remains indifferent and stubbornly insists on its own way,” a spokesperson for China’s Commerce Ministry said in a statement.
“This shows no responsible attitude toward the security of the global semiconductor supply chain.” China has repeatedly said Netherlands should “immediately correct its mistakes and clear the obstacles to restoring the stability and security of the global semiconductor supply chain.”
Experts say China accuses Netherlands of making “mistakes” over chipmaker Nexperia because the dispute touches on broader strategic competition.
“What we are seeing is an escalation in how semiconductor supply is used as leverage in geopolitical negotiations,” said Scott Meier, a supply chain analyst at the Center for Strategic Trade Studies.
“The Netherlands is a small country, but its semiconductor assets are strategically significant. How this plays out could reshape how countries approach technology transfer and foreign investment.”
The case highlights the delicate balance between national security and economic openness. The Netherlands is home to ASML Holding NV, the world’s only maker of the most advanced extreme ultraviolet lithography machines.
Those machines are critical in producing high‑end chips. While Nexperia’s products are not cutting edge, their ubiquity makes them indispensable in supply chains.
Foundation chips are used in nearly every electronic device, yet they are often overlooked in discussions about advanced semiconductors.
According to industry data, foundation chips account for more than 40 percent of the total wafer area consumed in automotive electronics.
Automakers such as Germany’s Bosch and Japan’s Nissan have flagged potential shortages, citing uncertain availability of Nexperia parts.
This is not the first time geopolitical tensions have disrupted supply chains. In 2019, US export controls on Huawei Technologies Co. triggered significant reshuffling of supplier relationships.
The current dispute echoes that pattern, albeit with a European government directly intervening in a company’s ownership structure, an unusual step that some analysts compare to wartime economic controls.
Representatives from European automotive manufacturers warned that disruptions at Nexperia could have real consequences for production lines.
“Our factories rely on a steady flow of foundation chips,” said Elena Fischer, supply chain director at an unnamed German auto supplier. “Any prolonged uncertainty affects not just production schedules but also employment and investment planning.”
Workers at semiconductor fabrication sites in the Netherlands and China have expressed concern about the growing uncertainty.
“We just want clarity,” said one technician at a Nexperia facility in Southeast Asia who asked not to be named. “Our jobs depend on smooth operations and predictable policies.”
China accuses Netherlands of making “mistakes” over chipmaker Nexperia at a time when global authorities are increasingly scrutinizing foreign investments in strategic sectors. Beijing has called for immediate correction of the Dutch actions, but Dutch officials have stood by their decision.
Vincent Karremans, Dutch economy minister, has defended the intervention, saying it was taken after careful national security review.
Negotiations between Chinese and Dutch officials are expected to continue, with European Union representatives monitoring the situation. Industry groups are urging rapid resolution to prevent further supply bottlenecks ahead of 2026 production cycles.
China accuses Netherlands of making “mistakes” over chipmaker Nexperia in a dispute that has broader implications for the global semiconductor supply chain and geopolitical technology competition.
As governments and corporations watch closely, the outcome will be significant for international trade norms, automotive production and efforts to secure critical technology supply lines.
