China has urged the Netherlands to swiftly correct its “mistakes” over chipmaker Nexperia and restore stability in the global semiconductor industry, in the latest development in a dispute over technology transfer.
In September, the Dutch government invoked a Cold War-era law to effectively take control of Nexperia, a Chinese-owned chipmaker based in the Netherlands. The unusual move was reportedly made after the U.S. raised security concerns.
In response, China moved to block its products from leaving China, which, in turn, raised the alarm among global automakers as they faced shortages of the chipmaker’s components.
On Wednesday, a spokesperson for China’s Commerce Ministry said that the Netherlands should “immediately correct its mistakes and clear the obstacles to restoring the stability and security of the global semiconductor supply chain.”
“What is perplexing is that, faced with the anxiety and unease of the global industry, the Netherlands remains indifferent and stubbornly insists on its own way, showing absolutely no responsible attitude towards the security of the global semiconductor supply chain, and taking no substantive action whatsoever,” the spokesperson said in a statement, according to a Google translation.
A spokesperson for the Dutch government was not immediately available to comment when contacted by CNBC on Wednesday morning. Dutch Economy Minister Vincent Karremans has repeatedly defended his decision to intervene in the company over recent weeks.
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Nexperia manufactures billions of so-called foundation chips — transistors, diodes and power management components — that are produced in Europe, assembled and tested in China, and then re-exported to customers in Europe and elsewhere.
The low-tech, inexpensive chips are needed in almost every device that uses electricity. In cars, they’re used to connect the battery to motors, for lights and sensors, for braking systems, airbag controllers, entertainment systems and electric windows.
Auto industry groups have said that disruptions in the supply chain for Nexperia parts have not yet been fundamentally resolved, meaning that component availability remains uncertain.
Japan’s Nissan and German auto supplier Bosch are among the firms to have warned about looming shortages.
Speaking to CNBC last month, a spokesperson for the German Association of the Automotive Industry (VDA), which represents Volkswagen, Mercedes-Benz Group and BMW among hundreds of others, warned of elevated risks to supply, “particularly for the first quarter” of 2026.
— CNBC’s Annika Kim Constantino contributed to this report.
Source: CNBC