File photo: VCG

The European Automobile Manufacturers' Association (ACEA) voiced deep concern over potential significant disruption to European vehicle manufacturing if the interruption of Nexperia chip supplies cannot be immediately resolved, according to the ACEA's announcement on its website released on Thursday local time.

On October 10, automobile manufacturers and their suppliers received notice from Nexperia outlining a sequence of events that results in them no longer being able to guarantee delivery of their chips to the automotive supply chain. Nexperia is an important, high-volume supplier of semiconductors that are often used in the electronic control units of vehicle electrical systems, for example, according to ACEA.

Without these chips, European automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers and this therefore threatens production stoppages. While the industry already sources the same types of chips from alternative players on the market, the homologating of new suppliers for specific components and the build-up of production would take several months, while current stocks of Nexperia chips are generally predicted to last only a few weeks, the Association said.

"The Dutch intervention is clearly a politicization of economic and trade issues that violates international norms, the spirit of contracts, and the rules of market operation, setting a dangerous precedent for the Netherlands and Europe," Zhang Jian, vice president of the China Institutes of Contemporary International Relations, told the Global Times on Friday.

"If the Netherlands fails to address this issue in a timely and appropriate manner, it could lead to even more serious consequences," Zhang said.

Meanwhile, the US auto industry could also be affected. A group representing major automakers warned late on Thursday local time that a chip disruption stemming from a dispute between China and the Dutch government could quickly impact US auto production, according to a Reuters report.

In the US, the Alliance for Automotive Innovation, which represents General Motors, Toyota, Ford, Volkswagen, Hyundai, and nearly all other major automakers, urged a quick resolution, Reuters reported.

"If the shipment of automotive chips doesn't resume - quickly - it's going to disrupt auto production in the US and many other countries and have a spillover effect in other industries," said the group's CEO John Bozzella, Reuters reported.

Some automakers told Reuters that US auto plants could be affected as soon as next month. They declined to be named due to the sensitivity of the issue.

The Dutch government announced on Sunday that it had as of September 30 taken control of Chinese-owned computer chipmaker Nexperia, citing worries about the possible transfer of technology to Nexperia's Chinese parent company, Wingtech, according to Reuters.

In response to a media question at a regular press conference on Friday — which noted that European and US auto associations had warned that the Dutch government's takeover of Nexperia, owned by Chinese chipmaker Wingtech, could disrupt supply chains, and asked whether China was in talks with the Dutch side to resolve the issue — Chinese Foreign Ministry spokesperson Lin Jian said China had already responded to the matter and that relevant authorities had further clarified their position on Thursday.

Lin reiterated that China firmly opposes the overstretching of the concept of national security and discriminatory actions targeting specific countries or companies. "Relevant countries should correct their mistakes, uphold the spirit of contracts and market principles, and stop undermining global industrial and supply chains. China will resolutely safeguard its legitimate rights and interests," he said.

Zhou Mi, a senior research fellow with the Chinese Academy of International Trade and Economic Cooperation, told the Global Times that China's participation in Nexperia's development was initially a win-win move, bringing not only capital but also advanced industrial know-how, talent, and supply chain integration. "These inputs helped stabilize Nexperia's finances and accelerate its growth. If such elements are removed, the company could face major hurdles in innovation, market expansion, and its role in Europe's existing supply chain," he said.

Zhou added that Nexperia's strength in automotive chips depends on continuous scale and open cooperation. "Overprotectionism based on geography or ownership undermines efficient resource allocation and weakens enterprise vitality," he said. "Such restrictions will increase uncertainty across the industry and negatively affect both horizontal and vertical cooperation between Chinese and European auto supply chains."

The semiconductor industry association, and Wingtech have also responded to the Netherlands' temporary control measures.

Wingtech Technology, in a Sunday statement published on its WeChat account, stated that the Dutch government's global operational freeze on Nexperia, based on unsubstantiated "national security" grounds, constitutes a case of overreaching driven by geopolitical bias rather than a factual risk assessment.

As a long-term strategic shareholder, Wingtech Technology will not yield to external political pressure, the company said. "We have initiated all available legal and diplomatic channels, requesting that the Dutch government immediately revoke the erroneous directive, cease systemic discrimination against Chinese enterprises, and uphold openness and cooperation of the global semiconductor industry chain."

"The semiconductor industry is a product of globalization, and its future depends on collaboration, not confrontation," the company said, noting that governments should provide a fair and non-discriminatory business environment for enterprises, rather than weaponizing technological cooperation.

In response to Dutch government's restrictive move against China-owned chipmaker Nexperia, China Semiconductor Industry Association (CSIA) said in a statement posted on its Wechat account on Tuesday that it opposes the abuse of the "national security" concept and the imposition of selective and discriminatory restrictions on overseas branches of Chinese enterprises.

"We firmly support our member units in defending their legitimate rights and interests, maintaining a fair, just, and non-discriminatory business environment, and ensuring the stability of the global industrial chain," the statement said, noting that the association expresses serious concern about the matter, which has attracted high attention from the industry.