Tue, 11 Nov 2025

Tue, 11 Nov 2025 Battle over Chinese chip maker rocks global car industry

In an extraordinary move, the Dutch government seized control of Nexperia, triggering anger in Beijing.
The Dutch government invoked an emergency law to take control of Chinese-owned chip company Nexperia, citing "serious governance shortcomings" and potential threats to critical technologies for the Dutch and European economy. Beijing responded by imposing export controls on Nexperia chips from China to Europe, while the Dutch government froze shipments of key supplies needed to make the chips in China. This disrupted the global motor industry, which relies heavily on Nexperia's "legacy" or "building block" semiconductors. Nexperia's parent company Wingtech Technology did not comment on the matter. The Chinese government wants the Dutch to revoke the takeover and has granted exemptions for export controls on civilian chip applications. The incident highlights China's ability to choke off global supply chains, particularly in critical sectors like semiconductors. It also underscores the tension between the US and China over trade and investment, with Western countries seeking to reduce their dependence on Chinese suppliers. Experts say that the episode is an example of "decoupling" - a process where business and economic ties between the West and China are being undone. This has created uncertainty and challenges for European vehicle industry suppliers, who are seeking clarity on exemptions and potential supply chain disruptions.
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