China’s commerce ministry has raised the possibility of another global semiconductor supply chain crisis, pointing to escalating tensions between Dutch chipmaker Nexperia and its Chinese subsidiary. The warning highlights how a corporate dispute could once again disrupt the flow of vital components used in everything from cars to consumer electronics.
The global auto industry is particularly vulnerable, as Nexperia’s chips are widely used in vehicle electronic systems. Production was previously disrupted months ago when China imposed export controls on these chips after authorities in the Netherlands seized the company from its Chinese parent firm, Wingtech.
While diplomatic talks had eased the initial chip shortage, the conflict between Nexperia’s Dutch headquarters and its China-based unit has only intensified. The Dutch side supports the removal of Wingtech’s control, while the Chinese subsidiary demands it be restored.
The latest warning from Beijing came a day after Nexperia’s Chinese packaging arm accused its Netherlands-based headquarters of disabling office accounts for all employees in China. China’s commerce ministry stated that this action has “provoked new conflicts and created new difficulties and obstacles for negotiations.”
The ministry placed the blame squarely on the Dutch entity, adding, “Nexperia Netherlands has seriously disrupted the company’s normal production and operation, and if this triggers a global semiconductor production and supply chain crisis again, the Netherlands must bear full responsibility for this.”
In response, the Dutch headquarters did not deny taking the IT action but disputed the Chinese subsidiary’s claim that it had affected production at the assembly and testing facility in Guangdong province. The rift between the two entities is deep; the Chinese subsidiary declared itself independent after the removal of Wingtech’s control, and the Dutch headquarters has since suspended the supply of key materials to the Chinese plant.
Efforts by Chinese, Dutch, and European Union officials to mediate a resolution have so far failed to break the deadlock. China has accused the Netherlands of not doing enough to force a compromise from Nexperia’s headquarters or to halt court proceedings that formally transferred Wingtech’s shares to a Dutch lawyer.
