A brewing storm in the tech world: China vs. the Netherlands over chip supplies. This clash is causing major headaches for car manufacturers worldwide. Let's dive into the details.
Published on November 4, 2025, this report from Reuters reveals a tense standoff between China and the Netherlands, specifically concerning the chipmaker Nexperia. The Chinese government is strongly criticizing the Netherlands for its actions, claiming they're the cause of disruptions in the automotive supply chain. These disruptions have already impacted production and forced some companies to take drastic measures, like furloughing staff.
Nexperia, though based in the Netherlands, is actually under Chinese ownership. They produce billions of essential, yet simple, chips used in cars and other electronics. The supply of these chips has been significantly affected by a disagreement between Amsterdam and Beijing regarding technology transfers.
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After some positive signals in discussions over the weekend, the Chinese commerce ministry issued a strongly-worded statement on Tuesday. They demanded that the Netherlands “stop interfering” in Nexperia's internal affairs. The ministry further stated that the Dutch government's lack of action to resolve the issue would only worsen the impact on the global semiconductor supply chain.
But here's where it gets controversial... Beijing's stance directly contradicts messages from The Hague, Brussels, and Nexperia, who claim they're making progress towards a solution. This situation is particularly worrying for car manufacturers who are desperately trying to secure supplies of Nexperia's chips.
The Dutch government took control of Nexperia on September 30, citing concerns that Nexperia's Chinese owner, Wingtech, planned to move the company's European production to China. They viewed this as a threat to European economic security. In response, China halted exports of Nexperia's finished chips, which are primarily packaged in China. Following a meeting between United States President Donald Trump and Chinese President Xi Jinping, China announced it would start accepting applications for exemptions.
A spokesperson for the Dutch Ministry of Economic Affairs confirmed that talks between the two governments were ongoing. They stated that they are working towards a constructive solution that benefits Nexperia and their economies. European carmakers and suppliers have been scrambling to apply for exemptions to import Nexperia chips, which require payment in Chinese currency, or are seeking alternative suppliers.
And this is the part most people miss... Antonio Filosa, CEO of Stellantis, highlighted Europe's supply chain vulnerabilities, which put them at a disadvantage compared to their rivals in China. He emphasized the lack of autonomy within the industry, using the Nexperia chip crisis and the April rare earth crisis as examples of painful experiences.
The European Commission acknowledged industry reports that China had engaged with EU companies to partially restore chip flow, preventing a worst-case scenario. A spokesperson for Nexperia, which has warned customers about the quality of shipments from its Chinese site, is focused on restoring supplies and de-escalating the situation.
Ola Kaellenius, CEO of Mercedes-Benz, noted signs of an understanding being reached between China, Europe, and the US. The German carmaker currently has a sufficient chip supply. However, the situation is being closely monitored, especially concerning the American-Chinese agreement. Wingtech's spokesperson was unavailable for comment, but the company has stated that resolving the situation requires restoring full control of Nexperia to its parent company.
What do you think? Is the Netherlands justified in its actions, or is China right to be upset? Could this situation have been handled differently? Share your thoughts in the comments below!
