A conflict between China and the Netherlands over the Dutch semiconductor company Nexperia, a subsidiary of a Chinese firm, has spilled over into the global automotive industry. According to Reuters on the 16th (local time), the European Automobile Manufacturers Association (ACEA) revealed that car manufacturers and suppliers were informed last week by Nexperia that they can no longer guarantee chip supply. ACEA warned that this could cause significant disruptions in automotive production.
The Alliance for Automotive Innovation (AAI), representing major U.S. car manufacturers, also called for a swift resolution. General Motors, Toyota, Ford, Volkswagen, and Hyundai are key members of AAI. John Bozzella, president of AAI, expressed concern that if semiconductor shipments for cars do not resume quickly, not only will automotive production in the U.S. and other countries be affected, but there could also be ripple effects in other industries.
Some car manufacturers, speaking anonymously, told Reuters that U.S. auto plants could be impacted as early as next month. Reuters explained that the semiconductors made by Nexperia are essential for U.S. parts and vehicle production. German companies Volkswagen and BMW noted that while production in Europe remains unaffected, they are working to identify potential supply risks.
Earlier, the Dutch government took emergency measures to seize control of Nexperia’s management, reportedly due to concerns that core technology might be transferred from Nexperia to its parent company, China’s Wingtech. Chinese Foreign Ministry spokesperson Lin Jian stated at a regular briefing on the 13th that China consistently opposes discriminatory measures targeting specific countries or companies under the guise of national security, and urged related countries (the Netherlands) to adhere to market principles and avoid politicizing economic and trade issues. The China Semiconductor Industry Association also labeled it as “discriminatory.”
There were foreign media reports that the U.S. pressure, particularly from the Trump administration, was behind the Dutch government’s actions. Wingtech was added to the U.S. Department of Commerce’s “Entity List” last year, and last month, the U.S. government expanded the regulatory scope to include subsidiaries of companies listed. Nexperia emerged in 2017 when the “Standard Products Division” of NXP Semiconductors, formerly part of Philips Semiconductors, became independent, and in 2019, Nexperia became a subsidiary of Wingtech.