Automotive News Europe — 2025-11-19
Automotive Industry
The news that the Dutch government has agreed to relinquish control of the Chinese-owned chipmaker Nexperia significantly de-escalates a crisis that threatened to disrupt worldwide auto production and highlighted Beijing’s growing leverage over the global economy.
The Dutch economic ministry said Nov. 19 that it was suspending its intervention at Nexperia after what it said were constructive talks with China. The Netherlands had seized control at the chipmaker, which is based in that country, at the end of September, citing concerns that actions by Wingtech Technology, the chipmaker’s Chinese owner, risked hobbling the company.
Nexperia is the last manufacturer with European production capacity for so-called “legacy” chips, which are crucial in the automotive and consumer electronics sectors. Nexperia manufactures most of its wafers in Hamburg, Germany, and then sends them to Dongguan, China to be packaged and sent on to customers.
China had suspended exports of Nexperia chips, putting automakers from Honda to Volkswagen at risk of missing crucial parts.
Optimism from China, trade groups, automakers tempered by future concerns
China’s Commerce Ministry said it welcomed the Dutch government’s decision, calling it a “first step in the right direction.”
It said that the move fell short of what it had hoped for, namely a withdrawal of the administrative order that triggered the Dutch intervention, which Beijing blamed for causing turbulence and disruption in global semiconductor supply chains.
The European Union’s trade chief, Maros Sefcovic, said the move would help stabilize supply chains.
“Continued constructive engagement with partners remains essential to securing reliable global flows. I stay in close contact with all my counterparts,” Sefcovic added in a message on X.
The European auto lobby group ACEA said on X that it was “a really welcome step” but added that the “issue is not solved as continuity of supply remains a critical short-term issue.”
“Vehicle manufacturers appreciate the efforts to get things moving in the right direction,” ACEA said.
Germany’s VDA car association warned that disruptions in the supply chain were far from resolved.
“This means that the supply of Nexperia parts remains uncertain, and negative impacts on production cannot be ruled out at this time either,” the VDA said in a statement.
BMW, Bosch and Aumovio all said they welcomed the development but said that it is too early to judge what impact it will have, while Mercedes-Benz and VW Group declined to comment.
“Production at our plants is continuing, but the situation remains volatile,” said a BMW spokesperson.
“We explicitly welcome the positive signals from the political sphere on this issue. We are continuously monitoring this development but cannot comment further at this time.”
The order that gave the Netherlands powers to block or revise decisions at Nijmegen-based Nexperia was dropped as “a show of goodwill,” Economic Affairs Minister Vincent Karremans said, adding that discussions with Chinese authorities are continuing.
“The Nexperia group currently shows no signs of continuing the behavior that prompted my order, nor any intention to do so,” the minister said in a letter to Parliament on Nov. 19.
Longer-term issues include Nexperia’s future role in supply chain
While the immediate supply squeeze is set to relax, longer-term issues remain.
After auto companies were forced to scramble for alternatives, Nexperia’s future role in the sector could be in doubt. Also, concerns about China’s ownership of the company goes back longer, with managers at the chipmaker approaching the Dutch government already in late 2023.
Bloomberg had reported earlier this month that the Netherlands was prepared to return control to Wingtech if chip exports from the company’s site in China could be confirmed. Karremans said that there is now “cautious optimism” that supplies of Nexperia chips are indeed flowing again.
Despite the suspension, Nexperia still has the obligation to provide information to the government about transfers of production resources or intellectual property, the economic affairs ministry said.
The role of Wingtech’s founder Zhang Xuezheng is also uncertain and remains a sticking point.
He was suspended as Nexperia’s CEO by the enterprise chamber of the Amsterdam court of appeal on Oct. 7 following a petition by the chipmaker’s management. His reinstatement was a demand by Wingtech to resolve the dispute, which also triggered a feud between Nexperia’s headquarters and its Chinese operations over financing and control.
The Netherlands felt comfortable with handing back control because the court ruling suspending Zhang still stands, said a person familiar with the discussions.
Wingtech said the Dutch government should withdraw its support in the court case against Zhang if it has “the sincerity to solve the problem,” a spokesperson for Wingtech said in an emailed statement. “These proceedings form a threat to the continuity of Nexperia BV and therefore for the economic security of the Netherlands and Europe.”
While the ministry’s order served its purpose, it could come back into effect if supplies are once again at risk, the person said.
Karremans said the suspension was justified against the backdrop of the measures taken by the Amsterdam court and based on “the confidence that China will continue on its current course.”