That’s why Nexperia, a Netherlands-based semiconductor manufacturer, has been proactively addressing the shift. This move follows China’s announcement just earlier this week to partially re-open its export restriction on the company’s chips. This change comes as geopolitical tensions and national security concerns are increasing. These same factors, paired with a shift in consumer demand towards electronic vehicles, have thrown the global supply chain for semiconductors—especially in the automotive sector—into chaos.
Nexperia is a subsidiary of Wingtech, a Chinese company that has come under withering criticism. In December 2024, the U.S. government blacklisted Wingtech on its “entity list,” citing national security concerns. This designation limits the corporation’s capacity to participate in particular international development agreements. The company operates an advanced manufacturing facility located in Stockport, UK. It had once owned the UK’s last remaining silicon chip plant, in Newport, but was forced to sell the business after UK MPs and ministers became alarmed at the possible national security implications of the sale.
In September, the Netherlands government acted and nationalized Nexperia, the serious governance shortcomings being the ostensible reason. They wanted to make sure that critical semiconductor manufacturing would not be put at risk during these crises. This takeover was carried out using a Cold War-era law commonly known as CFIUS, and underscores the increased urgency around technological sovereignty in Europe.
The European Automobile Manufacturers’ Association (ACEA) has recently come out as very concerned with the continued chip shortages. These shortages have only accelerated because of the export ban. They sounded the alarm that stocks of Nexperia chips are depleting. These chips, essential for automotive production, will only last a few weeks under current conditions without the Chinese ban being lifted. Without these chips, ACEA indicated that “European automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers and this therefore threatens production stoppages.”
These difficulties have not prevented Nexperia from ceasing the re-exportation of chips to China for finishing. The basis for this decision is outlined in a letter that Reuters recently obtained. Besides this uncertain backdrop, China has been very loud and clear. They’ve promised not to re-export finished Nexperia chips back to Europe.
Impacts on semiconductors production Approximately 60-70% of chips manufactured in the Netherlands typically go to China for final packaging and testing. Afterwards, they’re re-exported to markets across the world.
Nexperia has expressed its concerns over what it describes as “improper interference in the internal affairs of enterprises.” The company highlighted the “current disruption of global production and supply chains,” emphasizing that these geopolitical tensions are having real-world implications on its operations.
This week, former U.S. President Donald Trump and Chinese President Xi Jinping held a historic phone call on semiconductor production. Their discussions only underscored the industry’s strategic importance as global economic uncertainties continue to cast a shadow.