Tension surrounding Nexperia threatens car manufacturers

The Dutch government has taken control of semiconductor manufacturer Nexperia, which has been owned by the Chinese Wingtech group since 2019. It justified this move by citing concerns about national security and the possible leakage of technological know-how to China. The move immediately caused diplomatic tension between Beijing and Amsterdam and brought further turmoil to the already fragile chip market.

Nexperia is one of the most important suppliers of basic semiconductor components—diodes, transistors, and MOSFETs—necessary for controlling motors, lighting, and assistance systems in cars. Although these are not high-end processors, it is these "invisible" chips that keep the entire automotive ecosystem alive. Any supply disruption can have an immediate impact on car manufacturers.

China has responded by restricting exports of certain Nexperia products manufactured on its territory, increasing the risk of supply chain disruption. European carmakers have already begun to assess how much of their production is directly or indirectly dependent on Nexperia. Suppliers such as Valeo and Bosch are looking for alternative sources, but a complete replacement will take months. Some companies estimate that current stocks will only last for a few weeks of production.

The tension surrounding Nexperia is further proof that chips have become a geopolitical commodity. Although the European Union supports the construction of its own factories through the so-called "Chips Act," real self-sufficiency is still a long way off. The Dutch government's intervention may set a precedent—and signal that Europe is prepared to protect its strategic technologies even at the cost of conflict with China.

For the automotive industry, this means a return to the uncertainty it experienced during the pandemic. Any disruption in semiconductor supplies could once again halt factory lines, delay models, and increase costs. In the short term, this will be another test of the resilience of supply chains; in the long term, it will be a test of whether European manufacturers can build a more stable technological base independent of Asia.