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China Warns of Global Chip Crisis as Nexperia Dispute Escalates

Yahoo Tech •
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China's commerce ministry has warned of another global semiconductor supply chain crisis as tensions between Dutch chipmaker Nexperia and its Chinese subsidiary intensify. The ministry blamed Netherlands-based headquarters for disrupting production after disabling office accounts for all employees in China, escalating a dispute that began with Beijing's export controls on Chinese-made Nexperia chips last October.

Production across the global auto industry was disrupted when Beijing imposed export controls on Nexperia's Chinese operations after The Hague seized control from Chinese parent Wingtech. While diplomatic negotiations eased the initial chip shortage, the conflict has deepened. Nexperia's Dutch entity has suspended wafer supply to the Guangdong plant, while the Chinese subsidiary declared independence from its Dutch parent.

Beijing's warning comes as both entities trade accusations of bad-faith negotiating. The ministry stated that if this triggers another global semiconductor production crisis, the Netherlands must bear full responsibility. Efforts from Beijing, The Hague, and Brussels to mediate have failed to resolve the impasse, with Beijing accusing The Hague of insufficient pressure on Nexperia's Netherlands headquarters to compromise.