EU Seeks Diplomatic Resolution of Nexperia Supply Restrictions Amid China Tensions

The European Union is actively seeking a diplomatic solution to supply chain issues involving Dutch chipmaker Nexperia, which is Chinese-owned and has recently faced restrictions from Beijing on exporting products. EU tech chief Henna Virkkunen emphasized the EU's commitment to a diplomatic breakthrough during a virtual meeting with Nexperia, discussing short- and medium-term measures to strengthen supply chain resilience. The Dutch government recently imposed a restraint order on Nexperia to prevent asset transfers without consent, reflecting broader concerns over economic security and technology competition with China. Nexperia, a major semiconductor supplier for automotive and consumer electronics, has been linked to China's strategic tech ambitions, raising alarms about the transfer of intellectual property and production capabilities to China. This situation illustrates the growing urgency for secure and diversified supply chains amid geopolitical tensions and export controls, especially as the US has sanctioned Nexperia's parent company. The EU's efforts highlight the intersection of diplomacy, economic security, and technological sovereignty in addressing global semiconductor supply challenges.