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China Warns of Possible Global Chip Supply Crisis Amid Nexperia Dispute

China Warns of Possible Global Chip Supply Crisis Amid Nexperia Dispute

BEIJING – China warns of a potential global semiconductor supply chain crisis due to growing conflicts between Dutch chipmaker Nexperia and its Chinese subsidiary. The commerce ministry issued the warning on Saturday, citing new disputes that could disrupt production.

The tensions began after The Hague seized control of Nexperia from its Chinese parent, Wingtech, last October. At that time, Beijing imposed export controls on Nexperia chips, which are widely used in car electronics. The shortage temporarily affected the global auto industry.

Although diplomatic talks helped ease the earlier chip shortage, conflicts between Nexperia’s Dutch headquarters and its China-based unit have intensified. Nexperia Netherlands seeks to remove Wingtech’s control, while the Chinese subsidiary demands its restoration.

China warns that the Dutch actions have disrupted normal production and operations. The ministry said that if these issues trigger another global semiconductor crisis, the Netherlands would be fully responsible. The statement follows accusations by Nexperia’s Chinese packaging arm that the Dutch headquarters disabled office accounts for all employees in China.

Nexperia Netherlands did not deny the IT action but rejected claims that production in Guangdong province was affected. The Chinese unit declared itself independent after Wingtech’s control was removed in September. Since then, both sides have exchanged accusations of bad-faith negotiations. The Dutch headquarters has also suspended wafer supply to the Guangdong plant.

Efforts by Beijing, The Hague, and Brussels to mediate the conflict have achieved little progress. China warns that continued inaction could create new obstacles for international negotiations and increase the risk of supply chain disruptions.

In other news read more about China Plans ‘Childbirth-Friendly Society’ to Tackle Population Decline

The situation highlights ongoing tensions in the semiconductor industry and underscores the delicate balance between global trade, national security, and corporate control. Experts say any prolonged disruption could impact multiple industries worldwide.

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