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Nexperia row threatens car production in Europe, automakers warn
Nexperia row threatens car production in Europe, automakers warn
by AFP Staff Writers
Brussels, Belgium (AFP) Oct 16, 2025

A row between Beijing and the Netherlands over Chinese-owned chipmaker Nexperia risks causing "significant" stoppages and disruption on car production lines in Europe, carmakers warned Thursday.

European auto lobby ACEA said it was deeply concerned about a possible shortfall in chips used in vehicles after Beijing banned Nexperia from exporting goods from China.

"We suddenly find ourselves in this alarming situation. We really need quick and pragmatic solutions from all countries involved," said ACEA director general, Sigrid de Vries.

Netherlands-based Nexperia has found itself at the centre of a tug-of-war between China and the Netherlands over semiconductors, an increasing source of global geopolitical tension.

Officials in the Netherlands invoked a Cold War-era law in late September to effectively take control of the Dutch-based company, citing national security concerns.

The company, a major supplier of semiconductors used in the electronic control units of cars' electrical systems, then said the Chinese government had in turn banned it from exporting certain goods from China since October 4.

Days later, automakers and their suppliers were notified by the firm that it could no longer guarantee chip deliveries, said ACEA, which represents major manufacturers from BMW to Stellantis.

"Without these chips, European automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers and this therefore threatens production stoppages," the group said.

Producers source similar chips from other companies. But "the homologating of new suppliers for specific components and the build-up of production would take several months", while stocks of Nexperia chips are predicted to last only a few weeks, it added.

"This is a cross-industry issue affecting a large number of suppliers and virtually all of our members," said de Vries.

China 'firmly opposes' Dutch takeover of Nexperia
Beijing (AFP) Oct 16, 2025 - Beijing said on Thursday it "firmly opposes" the Dutch government's seizure of Chinese-owned chipmaker Nexperia, arguing that the takeover "violates the spirit of contractual agreements and market principles".

Officials in the Netherlands invoked a Cold War-era law in late September to effectively take control of the Dutch-based company, citing national security concerns.

This means that while the company -- a subsidiary of Chinese semiconductor firm Wingtech, based in the Dutch city of Nijmegen -- can continue regular production, its decisions can be blocked or reversed by the Dutch government.

The Dutch government said the move was due to "recent and acute signals of serious governance shortcomings and actions" within Nexperia.

A spokeswoman for Beijing's commerce ministry said on Thursday that China "firmly opposes the Dutch side's attempt to expand the concept of national security and directly interfere in the internal affairs of enterprises".

The decision "not only violates the spirit of contractual agreements and market principles, but will also severely damage the Dutch business environment, harming both others and itself," He Yongqian said.

She said court documents showed the United States had meddled in Dutch legal procedures to remove Nexperia's Chinese CEO, though she did not give a detailed explanation of the claim.

In December, Washington put Wingtech on its so-called "entity list", which affects the company's ability to trade with US firms.

"We hope that the Netherlands will uphold its independence and self-reliance... (and) correct its erroneous practices," He said.

In a statement on Tuesday, Nexperia said a court had ordered the suspension of CEO Zhang Xuezheng after concluding there were "valid reasons to doubt sound management".

The company also said Beijing had banned it from exporting certain goods from China since October 4.

Court documents later detailed a series of alleged improprieties by an executive who was not directly named but identified as the CEO.

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