Khaberni - The roots of "Nexperia" (Nexperia) go back to the early twentieth century when the companies "Mullard" (Mullard) in London and "Valvo" (Valvo) in Hamburg were founded, both of which were later acquired by the famous Dutch company "Philips" to become its core in the semiconductor industry.
During the 1950s and 1960s, Philips began developing and producing micro electronic components in Nijmegen, the Netherlands, and contributed to the invention of famous surface mount component packages like "SOT23" in 1969, making it one of the pioneers in the modern electronics industry.
In the 1980s and 1990s, Philips established factories in the Philippines, Malaysia, and China to meet the increasing global demand for electronic components.
In 2006, the semiconductor division was spun off to become "NXP Semiconductors," and in 2017, it became independent under the name "Nexperia," according to the company’s platform.
Khaberni China Acquires Nexperia
In 2019, the partially state-owned Chinese electronics company "Wingtech" acquired Nexperia, entering the heart of the raging technological and trade conflict between China on one side, and the United States and Europe on the other.
Nexperia manufactures silicon chips in Germany and the United Kingdom before shipping them to its factories in China and several Asian countries for cutting and packaging into ready units, with production exceeding 110 billion electronic components annually, used in vital sectors such as the automotive and consumer electronics industries, according to Reuters.
The company continued its expansion in Asia and Europe, and in 2022 acquired the Dutch technology company "NOWI," which specializes in energy management solutions, thus reinforcing its status as a leading global company in essential chips and electronic components.
According to Reuters, Nexperia's revenues reached about two billion dollars in 2024, confirming its presence as a pivotal player in the global semiconductor supply chain.
The Dutch Government Takes Over Nexperia
On September 30, 2025, the Dutch government enacted a rarely used Cold War-era law known as the "Goods Availability Act" to take actual control over Nexperia.
The decision, according to Dutch authorities, was a response to "significant governance and management gaps" inside the company, which is a vital part of the European semiconductor supply chain, warning that the continuation of the current situation could threaten the continuity and protection of technological knowledge and industrial capabilities in the Netherlands and Europe, according to CNBC.
In the same context, a Dutch court suspended Zhang Xuezheng, the CEO of Nexperia and the founder of Wingtech, from his role due to poor management and breaches of governance duties, reflecting the escalating tension between Amsterdam and Beijing over the future of the company and the independence of European technology.
The Shocking Chinese Response
Beijing responded on October 4, by imposing export controls on Nexperia's products made in China to Europe, which escalated tensions and fueled fears of a broader supply chain shock.
Major automakers stated that the chip disruption caused by the conflict between China and the Dutch government could quickly impact production, as Nexperia's chips are highly demanded for car manufacturing, according to Reuters.
The Chinese ban included products and assembly lines at its plant in Dongguan, Guangdong province, causing partial disruption of the supply chain.
Nexperia informed its clients in the automotive sector that it "was no longer able to guarantee supplies" due to disrupted shipments from China.
The Chinese Ministry of Commerce blamed what it described as "the inappropriate intervention of the Dutch government in the internal affairs of companies," causing "the current chaos in the global supply chain."
The Importance of Nexperia's Chips
Nexperia produces billions of essential electronic chips annually, including transistors, diodes, and power management components, which are manufactured in its European factories, then sent to its facilities in China for assembly and testing, before being re-exported to customers in Europe and around the world.
Estimates suggest that about 70% of the chips produced in the Netherlands are sent to China for final manufacturing and packaging before global distribution, according to CNBC.
Although these chips are simple and low-cost, they are the backbone of nearly every electronic system. In the automotive sector, they play a vital role in connecting the battery to the engines, operating lights and sensors, controlling brakes and airbags, as well as entertainment systems and electric windows, making any disruption in their production or supply capable of paralyzing global supply chains and disrupting assembly lines in major car manufacturing companies.
Paralysis Threatens the Automotive Industry
According to a previous report, the freezing of Chinese chip exports shocked the global automotive industry, as major companies like Honda Motor, Ford, and General Motors announced reductions or suspensions of production in their North American and European factories.
Honda temporarily stopped operations in its Canada factory and reduced production capacity in Mexico by 50% after running out of chip supplies from Nexperia.
In Europe, the Association of European Automakers warned that the available stock of Nexperia chips "would only last a few weeks," indicating that "stopping supplies could lead to widespread disruption at factories across the continent."
Mercedes-Benz said it had a short-term reserve sufficient "only for the near term," while Volkswagen acknowledged that it might face difficulties in achieving its financial targets for 2025 if the ban continued, despite securing enough components for the first weeks of November.
Arno Antlitz, CFO of Volkswagen, said the company expects "to achieve an operating profit in the upper range between 2% and 3% for this year," but he warned that "continuation of the chip crisis could endanger this."
In Germany, the newly separate company "Omovio SE" from "Continental" announced "preparations for the possibility of reducing work hours due to supply bottlenecks."
In the United States, the Association of Automobile and Equipment Manufacturers stated that American factories were "weeks away from facing significant impacts" if the dispute was not resolved.
Where Has the Crisis Reached? America Steps In
The crisis rapidly escalated with the entry of the United States as a mediator between Beijing and Amsterdam. Recent news reports stated that Washington plans to announce the partial resumption of Nexperia's chip shipments as part of a framework agreement reached during a summit between President Donald Trump and his Chinese counterpart Xi Jinping in South Korea, according to well-informed sources who spoke to CNBC.
In the same context, the Chinese Ministry of Commerce announced that it would exempt some of Nexperia's products from the export restrictions imposed following the Dutch government's acquisition of the company, without specifying the nature of these exemptions or the products covered by it.
The ministry said, "We will comprehensively assess the actual situation of the company and the exports eligible for exemption."
A spokesperson for the Chinese Ministry of Commerce stated that "China, as a responsible major country, fully considers the security and stability of local and global industrial and supply chains."
He added that China "welcomes companies facing practical difficulties to make immediate contact with the ministry or local trade authorities," noting that the ministry will consider the actual circumstances and grant export exemptions to eligible companies."
If these exemptions are activated, they could alleviate the immediate pressure on global automotive companies facing a severe shortage of essential components.
However, the core of the dispute, involving ownership, technology, and security oversight of the company, remains unresolved, leaving the crisis open to new escalation possibilities in the ongoing chip war between the East and the West.
