China Warns of Possible Semiconductor Shortage Amid Nexperia Dispute

China’s commerce ministry has warned that a dispute involving Dutch semiconductor company Nexperia and its China-based subsidiary could potentially lead to another disruption in the global semiconductor supply chain.

The warning follows fresh tensions between Nexperia’s Netherlands headquarters and its Chinese operations after the Dutch government moved to take control of the company from its Chinese parent, Wingtech.

The conflict had earlier affected the global automotive industry in October, when Beijing imposed export restrictions on Nexperia chips produced in China after Dutch authorities intervened in the ownership structure. Nexperia components are widely used in vehicle electronics and other automotive systems.

Although the broader chip shortage eased following diplomatic engagement, disagreements between Nexperia’s Dutch leadership and its Chinese subsidiary have intensified. While the Dutch headquarters supports the removal of Wingtech’s control, the Chinese unit has been pushing for the restoration of the earlier ownership structure.

China’s commerce ministry issued the warning a day after Nexperia’s packaging division in China accused the Netherlands-based headquarters of disabling internal office accounts for employees in the country.

In a statement, the ministry said the move had triggered fresh tensions and created additional hurdles for negotiations between the parties.

The ministry also alleged that actions by Nexperia’s Dutch entity had disrupted normal operations and warned that if the situation results in another global semiconductor supply crisis, the Netherlands would have to bear responsibility.

In response, Nexperia’s Dutch headquarters did not deny the IT-related action but rejected claims that the move had affected production at the company’s assembly and testing facility in Guangdong province.

The dispute escalated further after Nexperia’s Chinese subsidiary declared itself independent from the Dutch parent in September following the decision to remove Wingtech’s control. Since then, both sides have exchanged allegations over the breakdown in negotiations.

The Dutch headquarters has also suspended wafer shipments to the Guangdong facility, adding to operational uncertainties.

Attempts by authorities in Beijing, The Hague and Brussels to broker a mediated settlement have so far failed to resolve the dispute.

China has also criticised the Netherlands for not doing enough to encourage a compromise between the two sides or halt legal proceedings in Amsterdam that transferred Wingtech’s shares to a Dutch lawyer last year.

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