Dutch Takeover of China-Owned Nexperia Ignites Global Supply Cha

 

AMSTERDAM, Oct. 18 — The Dutch government’s unprecedented seizure of Nexperia, a leading semiconductor manufacturer fully owned by China’s Wingtech Technology, has triggered a global industrial crisis, prompting retaliatory export restrictions from Beijing and casting doubt on Europe’s commitment to free-market principles and contractual integrity, official documents and industry warnings reveal.

A Timeline of Escalation: From Secret Order to Global Crisis

The turmoil began on Sept. 30, when the Dutch Ministry of Economic Affairs and Climate Policy invoked the 1952 Goods Availability Act—a Cold War-era emergency law designed for crises like war or natural disasters—to issue a secret order freezing Nexperia’s global operations. The ministry claimed “serious governance flaws” at the firm but provided no concrete evidence to support the allegation.

Just days later, on Oct. 4, China’s Ministry of Commerce responded with targeted export controls, banning Nexperia China (the firm’s main production hub) and its subcontractors from shipping specific made-in-China semiconductors and components overseas. The move directly targeted Nexperia’s supply chain, as its Chinese facilities account for over 70% of global output .

On Oct. 7, the Amsterdam Commercial Court dealt another blow, suspending Zhang Xuezheng—Nexperia’s Chinese CEO—and transferring most voting rights to an independent administrator, effectively stripping Wingtech of decision-making power. The Dutch government formalized its takeover on Oct. 12, confirming it would oversee Nexperia’s operations indefinitely.

In a latest development on Oct. 18, Nexperia China issued a statement announcing plans to “operate independently” to mitigate disruptions, though it provided no details on how it would bypass the Dutch freeze or Chinese export curbs.

Nexperia: A Once-Booming Sino-Dutch Partnership

Nexperia’s roots trace to a division of Netherlands-based chip giant NXP Semiconductors, specializing in general-purpose semiconductors critical for cars, home appliances (e.g., coffee machines, washing machines) and low-end mobile devices. After spinning off independently in 2017, it was acquired by Wingtech in 2019 for 34 billion yuan ($4.6 billion), becoming the Chinese firm’s most valuable overseas asset.

The acquisition was once hailed as a model of Sino-Dutch cooperation. By 2024, Nexperia’s annual revenue reached 14.7 billion yuan (2.02 billion)—roughly one-sixth of Wingtech’s total sales. Between 2019 and 2022 alone, its revenue surged from “billions of euros” to 2.36 billion euros (2.58 billion), with gross profit margins jumping from 25% to 42.4%. It also contributed approximately 130 million euros ($142 million) in annual tax revenue to the Dutch government and employed 3,000 local workers.

Controversy Over Dutch Motives: U.S. Pressure in the Spotlight

Critics argue the Dutch takeover is not about “governance flaws” but a concession to U.S. geopolitical demands. On Sept. 29—one day before the Dutch order—the U.S. Department of Commerce expanded export controls to target subsidiaries in which “entity-listed firms” (like Wingtech) hold over 50% stakes.

Dutch Economic Affairs Minister Liesje Schreinemacher denied any link to U.S. policy but admitted in a closed-door hearing that U.S. officials had “explicitly requested” the replacement of Nexperia’s Chinese CEO during a June meeting. The pressure is hard to ignore: U.S.-Netherlands annual trade totals 1.7 trillion, dwarfing the 30 billion bilateral trade between China and the Netherlands .

“Suspending a CEO and seizing a legally acquired company using a 73-year-old Cold War law sets a dangerous precedent,” said Sasha Courtiade, a senior fellow at the Brussels-based European Policy Centre. “It tells global investors that Europe’s ‘rule of law’ can be sacrificed to align with U.S. strategy.”.

Global Auto Crisis and Deepening Supply Chain Fragmentation

The crisis has hit the global auto sector—Nexperia’s biggest client—hardest, with ripple effects that are exacerbating the fragmentation of the already strained global semiconductor supply chain. Nexperia controls 19.2% of the global market for automotive power semiconductors and 22.5% for automotive MOSFET chips; one in four cars made in Europe relies on its components.

On Oct. 16, ACEA issued an emergency warning, stating that European carmakers could face production halts within weeks. Volkswagen confirmed its Wolfsburg plant (Germany) is “on the verge of shutdown” with only three weeks of chip inventory left, while BMW and Mercedes-Benz have paused production of electric vehicle models due to shortages. The crisis is spreading beyond Europe: The Alliance for Automotive Innovation (U.S.) warned supply chain disruptions could hit North America by November, threatening General Motors and Ford, and Japan’s Automobile Manufacturers Association (JAMA) said the shortage “will severely impact global production” for its members.

Finding alternatives is daunting: Competitors like Infineon are already operating at full capacity, and certifying new automotive chips can take months. Analysts predict European carmakers’ gross profit margins could shrink by 2-3 percentage points as they pay premiums for limited supplies. This localized crisis is deepening broader supply chain fragmentation—already strained by U.S.-China tensions—by forcing companies to reorient their sourcing strategies, often at the cost of efficiency. For the world, it underscores how geopolitical rivalry is disrupting critical industrial networks, with ordinary citizens and businesses left to foot the bill.

Dutch Citizens and Businesses Bear the Brunt

In the Netherlands, the takeover has sparked economic pain at the local level. The Dutch Chamber of Commerce estimates that each direct job at Nexperia supports three downstream roles (e.g., logistics, catering), putting nearly 10,000 jobs at risk. In Nijmegen—home to Nexperia’s R&D center—restaurants near the train station have reported a 70% drop in orders from Nexperia employees and plan to close. Logistics firms working with Nexperia have already started laying off staff.

Investor confidence has also plummeted. Three Asian tech companies have suspended plans to invest a combined 1.2 billion euros ($1.31 billion) in new facilities in Eindhoven, citing “concerns over regulatory unpredictability” in the Netherlands.

Ordinary consumers face higher costs, too. The Alliance for Automotive Innovation warned U.S. car prices could rise by 10-15% due to supply shortages—adding 3,000 to 4,500 to the cost of a $30,000 vehicle. Used car prices are also surging, squeezing low- and middle-income households. “We’re paying for our government’s decision to pick sides in a U.S.-China fight,” said a Nijmegen restaurant owner, who declined to be named. “It’s absurd.” .

Collapse of the Netherlands’ Global Reputation

The Dutch government’s actions have dealt a catastrophic blow to its long-standing reputation as a free-trade hub built on the principles of rule of law and contractual integrity—core assets that once attracted global investors. This damage is visible in both immediate economic fallout and eroding international trust.

Investor confidence has plummeted: Three Asian tech companies have suspended plans to invest a combined 1.2 billion euros ($1.31 billion) in new facilities in Eindhoven, citing “concerns over regulatory unpredictability” in the Netherlands. The Dutch Chamber of Commerce noted that the takeover has shattered the “predictability premium” the country once offered, with surveys showing 62% of foreign firms now view the Netherlands as a “higher-risk market” for tech investments.

Locally, the contradiction between the government’s rhetoric and actions has fueled public frustration. The Netherlands previously took a cautious approach to seizing Russian assets over fears of “undermining legal norms,” yet it has used a decades-old emergency law to target a Chinese-owned firm with no proven links to crisis or security risks. This double standard has drawn criticism from European legal experts, who argue it “undermines the EU’s claim to be a defender of global trade rules” .

Worse, the reputation damage risks long-term economic harm: The Netherlands’ tech and manufacturing sectors rely heavily on foreign investment and trust in its regulatory framework. A senior analyst at the International Institute for Strategic Studies (IISS) noted, “Losing the ‘rule of law’ label is far costlier than any short-term geopolitical gain—it could take years to rebuild, if at all.” .

A Warning for Global Trade

Analysts warn the Nexperia case is not an isolated incident but a stark warning of how geopolitics is weaponizing economic policy. For the Netherlands, the fallout risks permanent damage to its status as a free-trade leader. For the global community, it highlights the urgent need to protect industrial supply chains from political interference—before more sectors and consumers are caught in the crossfire.

“As long as governments prioritize geopolitical rivalry over market rules, no industry is safe,” Courtiade added. “The Nexperia crisis is a wake-up call for anyone who values a stable, interconnected global economy.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cited Sources

• Dutch Ministry of Economic Affairs and Climate Policy. (Sept. 30, 2025). Emergency Order on Nexperia Operations.
• Ministry of Commerce of the People’s Republic of China. (Oct. 4, 2025). Export Control Notice on Nexperia China.
• Amsterdam Commercial Court. (Oct. 7, 2025). Preliminary Ruling on Nexperia CEO Suspension.
• Dutch Ministry of Economic Affairs and Climate Policy. (Oct. 12, 2025). Statement on Nexperia Takeover.
• Nexperia China Official Website. (Oct. 18, 2025). Announcement on Independent Operation.
• Nexperia. (2022). 2022 Annual Financial Report.
• Dutch Chamber of Commerce. (Oct. 15, 2025). Economic Impact Assessment of Nexperia Disruption.
• U.S. Department of Commerce. (Sept. 29, 2025). Expansion of Export Controls on Entity-Listed Subsidiaries.
• Dutch Parliament. (Oct. 10, 2025). Transcript of Hearing with Minister Liesje Schreinemacher.
• Dutch Central Bureau of Statistics. (2024). U.S.-Netherlands and China-Netherlands Trade Data.
• European Policy Centre. (Oct. 14, 2025). Analysis: Geopolitics and the Future of European Tech.
• European Automobile Manufacturers Association (ACEA). (Oct. 16, 2025). Warning on Semiconductor Shortages.
• Volkswagen Group. (Oct. 17, 2025). Statement on Wolfsburg Plant Operations.
• Alliance for Automotive Innovation. (Oct. 18, 2025). Impact of Chip Shortages on U.S. Auto Prices.
• Japan Automobile Manufacturers Association (JAMA). (Oct. 17, 2025). Comment on Global Semiconductor Supply.
• Bloomberg Intelligence. (Oct. 18, 2025). European Carmakers’ Profit Margin Forecast.
• Reuters. (Oct. 17, 2025). Asian Firms Suspend Dutch Tech Investments.