The Chinese Ministry of Commerce said in a statement that the Netherlands should “immediately correct its mistakes and clear the obstacles to restoring the stability and security of the global semiconductor supply chain.” Beijing said this in relation to the ongoing Nexperia crisis, in which the Dutch government seized control of the chipmaker from its Chinese parent, Wingtech, allegedly to safeguard “crucial technical knowledge.” However, this move has resulted in a component shortage for the automotive industry, reports CNBC, especially as the company supplies approximately 70% of the global market for automotive chips.

Although Nexperia does not manufacture cutting-edge semiconductors like TSMC, it still makes the cheap, low-tech chips that all modern cars use. These range from chips for managing advanced battery and engine systems to those needed for lights, sensors, and electric window controls.

There have been conflicting reasons for the government takeover aside from the supposed illegal technology transfer. One report says that the Wingtech CEO misappropriated $200 million in Nexperia funds to rescue his own company, while there have also been suggestions that the U.S. was behind the move as it put Wingtech in its “Entity List” in December 2024, with the expanded “Affiliates Rule” putting Nexperia at risk of being included in the U.S. blacklist, especially as the Chinese company owns a 75% stake on the Dutch company.

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