The conflict surrounding Nexperia, a Dutch semiconductor manufacturer, is escalating once again. Beijing warns that the dispute between the company’s headquarters and its Chinese branch could once again disrupt global chip supplies.
At the centre of the dispute is Nexperia, one of the world’s leading manufacturers of transistors and diodes. According to Reuters, the Chinese authorities have warned that recent actions by the Dutch headquarters could destabilise the global semiconductor supply chain once again.
According to information disclosed by the Chinese branch of the company, the headquarters has disabled access to company accounts for all employees in China. Beijing considered this a serious escalation of the dispute. ‘Nexperia’s latest actions have seriously disrupted the company’s normal production and operations,’ reads a statement from the Chinese Ministry of Commerce. The ministry also warned that the consequences could extend far beyond the company itself.
If this causes another global crisis in the semiconductor supply chain, the Dutch side must bear full responsibility, explains the Ministry of Commerce of the People’s Republic of China.
Crisis at Nexperia. What is the conflict between the Chinese and Dutch branches of the company about?
The current situation is the result of events in 2025. In October, the Dutch authorities took control of the company from its Chinese owner, Wingtech Technology. The decision was justified on the grounds of economic security and management issues.
Beijing’s reaction was immediate. Export restrictions were imposed on chips manufactured in China by Nexperia. The global automotive industry felt the effects. Honda, Nissan and Volkswagen, among others, had to reduce production.
Although tensions were partially eased through diplomatic negotiations, the dispute within the company has not been resolved. In September, the Chinese branch even announced its independence from the head office. Since then, both sides have accused each other of acting in bad faith.
Risk to global supplies
The problem is serious because Nexperia’s scale of operations is enormous. The company controls about 40% of the global market for transistors and diodes, components found in almost every electronic device.
Their use extends far beyond the automotive industry. They are found in computers, power supplies, motherboards and chargers. In practice, this means that prolonged disruptions in production could affect many sectors of industry.
An additional problem is the structure of production. According to analysts, as much as half to three-quarters of Nexperia’s global production may come from plants in China. Replacing silicon wafer supplies for the factory there could take up to six months.
Will the scenario from 2024 repeat itself?
Nexperia issued a statement in which it did not deny that it had revoked Chinese employees’ access to accounts. However, according to the company, these actions did not paralyse production at the factory in China. The company stated that the claims of disruption were ‘untrue and misleading’.
The Chinese branch maintains that operations have already been partially restored and that the company has launched a contingency plan to limit the impact of the conflict on future deliveries. The question is, however, whether this will be enough. Although Nexperia’s products are used in various sectors, the effects of the crisis within the company are likely to be felt mainly by the automotive industry, which remains one of the sectors most affected by the microprocessor crisis that has been ongoing since 2024. With the ongoing electrification of the automotive sector, the lack of these essential components could have a serious impact on the global automotive industry.
