Dutch Seizure of Nexperia Sparks Export Ban, Auto Risk

The Dutch government invoked a Cold War–era law to seize effective control of Chinese‑owned chipmaker Nexperia, giving caretaker economic minister Vincent Karremans veto powers amid U.S. pressure and national/EU security concerns. Nexperia’s China unit instructed staff to ignore the takeover order as having no legal effect in China, and Beijing then banned exports of the company’s products, escalating the dispute. The disruption threatens auto supply chains because Nexperia supplies large volumes of semiconductors — by some accounts roughly 40% of certain components used in electronic control units and safety systems. Carmakers across Europe and Japan, including Volkswagen, Volvo, Honda and Nissan, warned of possible factory stoppages if alternatives cannot be found. The European Commission has stepped in to try to ease trade tensions and avert broader disruptions. Executives say immediate impacts vary by firm, but the risk to European automotive production and the wider economy is significant.