Beijing blames Netherlands for Nexperia stalemate

China's commerce ministry has accused the Netherlands of failing to work with Beijing to resolve the dispute over the Dutch government's seizure of chipmaker Nexperia, Reuters reports. The Chinese government warned of further supply chain disruptions, stating on its website that the Dutch side continues to act unilaterally without taking concrete steps to resolve the issue, which will inevitably exacerbate the adverse impact on the global semiconductor supply chain. The dispute has already threatened to halt assembly lines and lead to worker furloughs in Europe, as around 70% of Nexperia's chips are packaged in China before distribution.

Despite China's accusations, the Dutch economic affairs ministry maintains that talks between the two governments are still in progress, with ongoing contact aimed at finding a "constructive solution". However, China's commerce ministry insists that the Netherlands is acting unilaterally, exacerbating the semiconductor supply chain issues.

The core of the dispute lies in the Dutch government's seizure of Nexperia on September 30, 2025, citing national security concerns. The Dutch government, under outgoing Minister of Economic Affairs Karremans, feared that valuable technological knowledge and intellectual property would fall into Chinese hands, posing a threat to European economic and security interests. Nexperia also manufactures some of its chip wafers in Manchester, UK.

Nexperia's crunch impact on the automotive industry

The automotive industry is feeling the squeeze due to export restrictions on Nexperia products made in China, imposed shortly after the Dutch government's seizure. The industry, already grappling with a semiconductor shortage since the coronavirus pandemic, faces potential production line standstills. Some of Nexperia's products have seen price surges of over tenfold in recent weeks, reaching two to three yuan each, reflecting the scarcity and high demand. German auto parts supplier Bosch is reportedly preparing to furlough staff at its Salzgitter plant if the dispute remains unresolved. Major automotive manufacturers like Nissan, Mercedes-Benz, and GM have also voiced concerns about the deepening supply crunch.

China has indicated a willingness to allow some companies to resume exporting components from Nexperia, following what it describes as "inappropriate interference" by the Dutch government. The Chinese ministry plans to closely examine the circumstances of these companies before granting exemptions for "eligible exports". This decision may be linked to recent discussions between Chinese President Xi Jinping and U.S. President Donald Trump, with the White House announcing on October 30, 2025, that Beijing would take measures to ensure the resumption of trade from Nexperia's facilities in China.

Diplomatic efforts

The European Union is also actively involved in addressing the situation. EU trade chief Maros Sefcovic stated on an X post that there had been "progress" in talks on Nexperia involving the Dutch and Chinese governments, though he did not provide specific details. Sefcovic had planned further discussions with Chinese officials after a meeting in Brussels last week, where the Nexperia export ban and restrictions on rare earth metals were discussed.

Adding to the complexity, Nexperia suspended wafer shipments to its Chinese assembly plant on October 31, citing a contractual dispute with its Chinese unit. Interim CEO of Nexperia, Stefan Tilger, stated that continuing the current supply flow from Nexperia's front-end sites was no longer justifiable. This decision could further exacerbate the global semiconductor shortage, particularly impacting industries reliant on these chips.