Dutch Diverges From Eu Stance As Netherlands Suspend Power Over Chinese Chipmaker
The Netherlands’ suspension of its powers over Nexperia, a Chinese-owned chipmaker, marks a …
19. November 2025
Dutch Diverges From Eu Stance As Netherlands Suspend Power Over Chinese Chipmaker
The Netherlands’ suspension of its powers over Nexperia, a Chinese-owned chipmaker, marks a significant turning point in the escalating geopolitical clash between Europe and Beijing. The move, described as a “show of goodwill” by Dutch Economic Affairs Minister Vincent Karremans, has helped to defuse a standoff that had threatened to disrupt car production globally.
Nexperia, based in Nijmegen, is one of Europe’s largest producers of power and logic chips, many of which are shipped to China for packaging before returning to global markets. The company’s semiconductors underpin the systems that rely on them, including advanced AI processors, factory robots, and autonomous vehicles. As demand for computing hardware accelerates, even basic components have become strategic assets.
The dispute began on September 30 when the Netherlands invoked the Goods Availability Act, a rarely used cold war-era mechanism designed to safeguard critical industrial capacity in emergencies. The order effectively placed Nexperia under supervisory control to prevent the alleged risk of intellectual property or assets being transferred out of Europe. Dutch officials said the intervention was necessary after intelligence suggested threats to the continuity of “crucial technological knowledge and capabilities” within Europe’s borders.
China responded forcefully, imposing an export ban in early October on chips produced by Nexperia inside China — where most of the company’s products undergo final assembly. This move had a significant impact on global carmakers, with production pauses reported in Mexico and manufacturers across the EU warning they were “days away” from shutting lines.
However, China lifted the export ban on November 9, helping to stabilize production schedules. Volkswagen and Honda later confirmed that chips were once again arriving at facilities in Germany and Mexico, providing relief for the automotive sector.
The Dutch government’s decision has been welcomed by industry leaders, who see it as a positive step towards resolving the dispute. “This is a welcome relief for the automotive sector, which was facing significant uncertainty and disruption,” said a spokesperson for the European Automobile Manufacturers Association (ACEA).
The suspension of the Dutch order marks a temporary cooling in tensions between Europe and China. However, analysts warn that the Nexperia dispute illustrates a new era in which supply chains for relatively low-margin components can become flashpoints with global consequences.
“The Nexperia dispute is just one example of how supply chains are becoming increasingly politicized,” said Mark Harrison, an economist at the University of Oxford. “As countries increasingly rely on each other for critical inputs, even small disruptions can have significant effects.”
The episode has highlighted the growing importance of technological sovereignty in international relations. European officials contend that China is using commercial leverage as a tool of geopolitical pressure, seeking to gain access to cutting-edge technologies and intellectual property.
“The Nexperia dispute is not just about chips; it’s about who controls the flow of technology and innovation,” said Karremans. “We need to ensure that our industries are protected from unfair competition and that we maintain control over our own technological destiny.”
The European Commission has announced the initiation of three market investigations concerning cloud computing services under the landmark Digital Markets Act. These investigations will examine whether Chinese companies are using their dominant market positions to restrict competition and access to critical technologies.
In a broader context, the Nexperia dispute is just one part of a larger debate about the future of global supply chains and technological governance. As countries increasingly rely on each other for critical inputs, the risks of disruption and exploitation will only grow unless steps are taken to address these issues proactively.
The Dutch government’s suspension of its powers over Nexperia offers breathing space but does not resolve the underlying struggle over control of semiconductor production — and the intellectual property that underpins it. The automotive sector and European policymakers will remain wary of further shocks as the situation continues to unfold.
As the implications of the dispute become clearer, it is evident that the Nexperia crisis has highlighted the growing strategic importance of chip-packaging and finishing plants in China. The European automotive sector, in particular, will be watching closely to see how this issue plays out.
The Dutch government’s decision underscores the need for greater cooperation and understanding between nations. Karremans noted that “we are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world.” The Netherlands will continue to participate in diplomatic efforts, working towards a resolution that benefits both sides.
The Nexperia dispute has significant implications for global supply chains and technological governance. As demand for computing hardware accelerates, even basic components have become strategic assets. The Dutch government’s decision marks a turning point in the escalating tensions between Europe and China, but the underlying struggle over control of semiconductor production remains unresolved.