China Demands Netherlands 'Correct Mistakes' Over Seized Chipmaker as Auto Supply Crunch Deepens

The Chinese Commerce Ministry criticized the Netherlands over its actions regarding chipmaker Nexperia, demanding immediate correction. The Dutch government, under pressure from the US, effectively took control of the Chinese-owned company using a Cold War-era law. China retaliated by blocking Nexperia product exports, further impacting global supply chains. Nexperia produces essential, low-tech foundation chips used in various electronic devices like car components. These chips are manufactured in Europe, assembled and tested in China, and then distributed globally. China accused the Netherlands of disregarding global semiconductor supply chain security. The Dutch Economy Minister has defended the government's intervention in the matter. Automakers like Nissan and Bosch have reported potential component shortages due to the disruptions. The German Association of the Automotive Industry warned of supply risks, especially in early 2026. This situation highlights the ongoing tensions and vulnerabilities in the global semiconductor industry.