When Dutch authorities seized control of chipmaker Nexperia almost two months ago, it resulted in a clash between the head office in Nijmegen and the company’s mainland China unit, which vowed to operate and meet orders as an independent enterprise.
That dispute also exposed the vulnerability of global car supply chains, as any disruption in Nexperia’s shipments of so-called legacy chips would affect nearly every major European carmaker, as well as those in Japan and the United States.
Here are the milestones of the Nexperia crisis:
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
September 29
The Bureau of Industry and Security (BIS) under the US Department of Commerce extended export control restrictions to entities at least 50 per cent owned by companies on Washington’s trade blacklist. Nexperia became subject to US sanctions because it was wholly owned by Wingtech Technology, which was added to the blacklist in December last year.
September 30
The Netherlands’ Ministry of Economic Affairs seized control of Nexperia, citing national security concerns and invoking an obscure 1952 law known as the Goods Availability Act. Nexperia was prohibited from relocating company assets without explicit permission from the Dutch government for a year.
Chipmaker Nexperia’s headquarters in Nijmegen, the biggest city in Gelderland, the Netherlands’ largest province. Photo: AFP alt=Chipmaker Nexperia’s headquarters in Nijmegen, the biggest city in Gelderland, the Netherlands’ largest province. Photo: AFP>
October 4
In retaliation, China’s Ministry of Commerce issued an export control notice that prohibited Nexperia’s China unit and its subcontractors from exporting specific finished components and sub-assemblies manufactured in the country. Nexperia’s assembly and testing facility in Dongguan, in southern Guangdong province, is responsible for 70 per cent of the company’s global output.
October 7
Following an emergency hearing, the Dutch Enterprise Chamber issued a ruling that ousted Nexperia CEO Zhang Xuezheng, the founder of Wingtech. Substantially all voting rights on Nexperia shares, indirectly held by Wingtech, were placed under the management of an independent administrator appointed by the Enterprise Chamber. Nexperia later named chief financial officer Stefan Tilger as interim CEO.
October 17
Nexperia’s China unit informed customers it was notified by the Dutch head office that salary payments would cease and employees’ access to company systems would be suspended. The unit said it faced “ruthless suppression”.
October 18
Nexperia China instructed its employees to follow orders from local management and ignore instructions from the Dutch head office, according to a letter issued to employees. In a Chinese-language statement on its official social media channel, the unit declared that it was an “independent” Chinese entity.
October 20
Nexperia (Shanghai), one of nine China-registered entities under the chipmaker, accused the Dutch head office of spreading misinformation to customers and attempts to disrupt normal operations on the mainland, according to a public letter to customers on its WeChat account, published in both English and Chinese.
In addition, Nexperia’s China subsidiary publicly rejected the Dutch headquarters’ decision to remove John Chang as vice-president of global sales and marketing, declaring the dismissal legally ineffective in China.
The facade of Dutch semiconductor maker Nexperia’s sole China factory in Dongguan, southern Guangdong province. Photo: Coco Feng alt=The facade of Dutch semiconductor maker Nexperia’s sole China factory in Dongguan, southern Guangdong province. Photo: Coco Feng>
October 22
In the first publicised call between senior officials from Beijing and The Hague since Dutch authorities seized control of Nexperia, Minister of Commerce Wang Wentao called on the Netherlands to “promptly and properly” resolve the issue.
In response, Dutch Minister of Economic Affairs Vincent Karremans said The Hague was willing to maintain close communications with the Chinese side to seek “a constructive solution” to the Nexperia issue.
October 27
In interviews with the Post, employees at Nexperia China said the Dongguan facility had sharply scaled down manufacturing, reduced working hours and idled one third of the machines in a certain part of the production area.
October 29
Nexperia head office announced that it had to suspend further direct supply of wafers to the company’s facility in Dongguan, following Nexperia China’s refusal of payments for these wafers.
“Given the missing transparency and oversight over the manufacturing processes we cannot guarantee the intellectual property, technology, authenticity and quality standards for products delivered from the Nexperia facility in China as of October 13,” the head office said in a statement.
October 30
A meeting between Chinese President Xi Jinping and his American counterpart, Donald Trump, in Busan, South Korea, led to a trade truce that included the potential suspension of the so-called Affiliates Rule, which extended US export control restrictions to companies owned 50 per cent or more by firms blacklisted by Washington.
Chinese President Xi Jinping meets his US counterpart, Donald Trump, before their bilateral meeting at Gimhae Air Base in Busan, South Korea. Photo: dpa alt=Chinese President Xi Jinping meets his US counterpart, Donald Trump, before their bilateral meeting at Gimhae Air Base in Busan, South Korea. Photo: dpa>
November 1
China’s Ministry of Commerce said it was looking to exempt some Nexperia orders from its export ban. It said exemptions were being considered to stabilise the supply of Nexperia chips in global supply chains. It encouraged affected companies to reach out and request such an exemption.
November 2
Nexperia China reassured customers that production would continue uninterrupted, saying it had secured enough wafer supplies and can meet client demand through to the end of the year and beyond. The firm said it had “multiple contingency plans” in place, according to a bilingual statement.
November 4
The European Commission, the primary executive branch of the European Union, said a “worst-case scenario” had been averted after China’s commerce ministry engaged with European companies to restart the flow of Nexperia’s chips.
Beijing, however, blamed the Dutch government’s inaction in resolving the Nexperia dispute, saying The Hague has failed to show a “constructive attitude” and was escalating the global semiconductor supply chain chaos.
November 6
China’s Ministry of Commerce said it had “promptly approved” relevant export-licence applications from mainland exporters and reiterated that it would grant exemptions for eligible exports.
German car parts suppliers ZF Friedrichshafen and Aumovio, as well as leading carmaker Volkswagen, told the Post that they were trying to find ways to mitigate the impact of the Nexperia chip shortage.
A view of wafers in Dutch chipmaker Nexperia’s production line in Hamburg, Germany. Photo: Reuters alt=A view of wafers in Dutch chipmaker Nexperia’s production line in Hamburg, Germany. Photo: Reuters>
November 10
The BIS suspended the Affiliates Rule, which extended export restrictions to certain foreign entities owned by listed parties, for one year. The suspension would be automatically reimposed on November 10, 2026, unless the BIS took further regulatory action.
November 11
The first shipments of Nexperia chips were on their way to Europe after Beijing granted exemptions to its export restrictions, German auto suppliers told the Post.
November 19
The Dutch government suspended its invocation of the Goods Availability Act, a Cold War-era law used to seize control of Nexperia’s European operations, “as a show of goodwill”. Beijing said the move was a “first step in the right direction”.
November 20
Wingtech said it would use all possible legal means to take back control of Nexperia, putting pressure on the Dutch government to do more to restore the rights of the chipmaker’s Chinese owner.
Resources conglomerate and Mumbai-listed Vedanta is preparing to raise about ₹2,000 crore through rupee-denominated non-convertible debentures (NCDs) at its ferrous...
