A logo of Nexperia Photo: VCG

The ongoing Dutch restrictions against Chinese-owned chipmaker Nexperia risk causing "multi-layered and irreversible" real-world damage to the stability of semiconductor supply chains in Europe and globally, deputy chief of a chip industry association has warned in an exclusive interview with the Global Times. 

The comments from Wei Shaojun, vice chairman of the China Semiconductor Industry Association (CSIA), came in response to the Netherlands placing Nexperia under special administrative measures over so-called security concerns.

The Dutch Ministry of Economic Affairs revealed on October 12, 2025 that it had invoked the 1952 "Goods Availability Act" on Nexperia in September in order "to prevent a situation in which the goods produced by Nexperia (finished and semi-finished products) would become unavailable in an emergency."

Wei said that Nexperia, a century-old European-origin leader in power semiconductors now owned by China's Wingtech, operates with deep localization. Its collaboration with European and global industrial chains has formed a deeply intertwined relationship, extending beyond production and orders to include technological coordination, standard-setting, and ecosystem development.

Wei stated that the Dutch government's restrictions on Nexperia directly threaten the stability of Europe's supply chains, exposing downstream automotive companies to dual pressures of supply disruptions and surging costs. 

As a critical hub in Europe's automotive electronics supply chain, Nexperia's power devices account for over 30 percent of solutions used by major European suppliers such as Bosch and hold around 19 percent of the global automotive-grade power semiconductor market, according to Wei, citing to TrendForce data. If ongoing restrictions disrupt its production, European automakers—including BMW and Volkswagen—would face immediate chip shortages, severely disrupting their manufacturing schedules.  

Back in October, the European Automobile Manufacturers' Association warned of imminent disruption to automotive factory schedules from Nexperia-related chip shortages, Reuters reported.   

Shortages of Nexperia chips have caught automakers by surprise. Honda Motor Co. halted production at several plants, while Volkswagen AG and others scrambled teams to secure alternatives. Top parts supplier ZF Friedrichshafen AG reduced output, Bloomberg reported on Monday.  

Wei added that the restriction measures undermine the stability and predictability of the global semiconductor supply chain. The semiconductor industry is fundamentally characterized by "global division of labor and efficient collaboration." 

Nexperia's production layout leverages Europe's technological expertise in wafer manufacturing while utilizing the scale advantages of global packaging and testing capacity. By forcibly severing this collaborative model, the Dutch measures are shifting supply chains from structural optimization toward geopolitical fragmentation, according to the deputy head of the association. 

The impact of this rupture extends beyond Nexperia itself, reverberating throughout Europe's semiconductor ecosystem. “On one hand, European companies reliant on Nexperia will be forced to reconfigure their supply chains, increasing redundant inventory and substitution costs, thereby weakening supply chain resilience. On the other hand, global trust in Europe's semiconductor supply chain will be eroded, likely diverting international orders to other regions, and further diminishing Europe's role in the global semiconductor landscape,” he said.

Moreover, the restriction impedes Europe's technological advancement and long-term industrial competitiveness. Nexperia's GaN R&D center in the Netherlands is responsible for core R&D in next-generation energy-efficient chips crucial for Europe, Wei said. 

Restricting this collaboration will slow down the EU's technological iteration in fields like electric vehicles and renewable energy, forcing local companies to rely on higher-cost alternatives, thereby undermining both its bargaining power and technological leadership, he said.

He added that the CSIA has repeatedly called for joint efforts to safeguard the stability of the global semiconductor supply chain. The association firmly opposes discriminatory measures against specific enterprises, stressing that such actions severely undermine the open, inclusive, and collaborative ecosystem essential to the global semiconductor industry.

Commenting on the Dutch Minister of Economic Affairs Vincent Karremans' remarks in an interview with Dutch media claiming that tough measures against Nexperia were indeed necessary, a spokesperson from China's Ministry of Commerce (MOFCOM)  said on December 31, 2025 that the Chinese side has repeatedly emphasized that the Dutch side's improper administrative intervention in the internal corporate affairs of Nexperia has already triggered a crisis in the global semiconductor supply chain, and the Dutch side must bear full responsibility for this.

It is perplexing that, in the face of anxiety and unease across the global industry, the Dutch side remains indifferent and stubbornly clings to its position, showing no sense of responsibility whatsoever for the security of the global semiconductor industry and supply chain, and taking no substantive actions. China once again calls on the Dutch side not to act willfully and recklessly, to immediately correct its mistakes, and to remove obstacles to restoring stability and security in the global semiconductor industry and supply chain, the spokesperson noted.

According to Wei, imposing restrictions on enterprises deeply integrated into the local industrial fabric runs counter to industrial logic. True industrial security and competitiveness should be achieved through deepened international cooperation and the construction of open, diversified, and mutually trusting networks—not through exclusive administrative intervention. Otherwise, Europe’s goals of "strategic autonomy" and "resilience" risk becoming counterproductive.

Ling Ji, vice minister of MOFCOM and deputy China international trade representative, stressed that the root cause of the disruption in the global semiconductor supply chain lies with the Dutch side, during separate video conferences with the heads of the German and European auto industry associations in December 2025. 

Ling said that China has consistently acted responsibly by implementing export license exemption measures in a timely manner to minimize the impact on the automotive industry. He called on the associations to play an active role in helping Nexperia find a solution to stabilizing the global supply chain at an early date.
 
Wei emphasized that we have always advocated that semiconductors are a typical globalized industry, and that technological evolution and business expansion should follow market rules and industry logic. Corporate investment decisions, R&D cooperation, and product sales are essentially economic activities and should not be easily labeled with geopolitical tags. 

“We also call on governments to maintain an objective and fair stance, reduce non-market interference, and work together to uphold a fair, transparent, and predictable international business environment. Only in this way can we truly drive global technological progress and shared benefits,” he said.