Dutch chipmaker Nexperia has issued a rare public call for cooperation from its Chinese subsidiaries, underscoring the escalating operational turmoil that followed the Dutch government’s takeover of the company in September. In an open letter published Thursday, the Dutch unit said multiple attempts—through calls, emails and proposed meetings—to re-establish communication with its China-based operations had gone unanswered, placing the firm’s global supply chain at risk.

A Strategic Seizure That Triggered a Corporate Split

Nexperia, headquartered in the Netherlands but owned by China’s Wingtech, has long occupied a critical niche in the global semiconductor ecosystem. Its billions of simple yet essential chips are embedded in automotive systems, industrial equipment and household electronics. Any disruption to output carries immediate implications for manufacturers, especially carmakers already recovering from years of component shortages.

The Dutch government’s decision on Sept. 30 to take control of Nexperia was driven by concerns that the company’s former CEO might shift European operations to China. Authorities viewed such a relocation as a national security risk, given Europe’s heightened push to secure its semiconductor base. The intervention created a governance rupture inside the company, ultimately disconnecting the European headquarters from its Chinese units.

China responded swiftly. On Oct. 4, Beijing halted exports of Nexperia’s finished products, a move that temporarily froze key shipments to global clients. Although restrictions have since been partially relaxed, the standoff continues to destabilize day-to-day operations.

A Supply Chain Under Stress Amid Rising Geopolitical Friction

Nexperia’s operational model depends on cross-border workflow: wafers manufactured in Hamburg, Germany, are shipped to Dongguan, China, for packaging before delivery to customers. This structure—optimized for cost and efficiency—has become a liability amid the broader geopolitical reshaping of global chip supply chains.

Tensions escalated further when Nexperia’s Chinese arm declared it was no longer subject to European management after the takeover. On Oct. 26, the Dutch side halted wafer shipments to China, citing non-payment. This reciprocal freeze has effectively immobilized the company’s integrated workflow, threatening prolonged output delays.

Automotive manufacturers, already vulnerable to semiconductor shortages, face potential knock-on effects if the dispute lingers. Production slowdowns—common during the global chip crunch of 2021–22—could re-emerge if Nexperia cannot restore its manufacturing cadence.

EU–China Diplomatic Pressure Builds

In recent days, diplomatic channels have become more active. China’s commerce minister Wang Wentao and EU trade commissioner Maros Sefcovic discussed the standoff on Wednesday, urging a company-driven path toward resolution. However, without direct communication between Nexperia’s divided operations, progress remains limited.

The episode highlights the growing strategic friction between Europe and China over semiconductor control, intellectual property, and technological sovereignty. Nexperia’s situation may become a test case for how cross-border chip firms navigate increasingly interventionist industrial policies on both sides.

Looking Ahead

Nexperia’s ability to restore cooperation between its European and Chinese branches will determine how quickly its supply chain can return to stability. The company faces mounting pressure from automakers and global clients dependent on timely deliveries. With political sensitivities rising in both Beijing and Brussels, the coming weeks will reveal whether corporate negotiations can proceed faster than geopolitical tensions escalate—an outcome essential for the continuity of Europe’s already strained semiconductor ecosystem.