EU, China Progress on Nexperia Chipmaker Dispute amid Supply Chain Concerns

The Dutch government seized control of the Chinese-owned chipmaker Nexperia in September 2025, citing concerns over potential technology transfer to its Chinese parent company, Wingtech, and fears of corporate misconduct. This move sparked a diplomatic dispute between the Netherlands, China, and the EU, leading to warnings from China about possible further disruptions to the global semiconductor supply chain. European Trade Commissioner Maros Sefcovic has reported progress in talks aimed at resolving the conflict and restoring stability to the semiconductor supply chain. Meanwhile, following discussions between U.S. President Trump and Chinese President Xi Jinping, there are indications that Nexperia may resume chip exports, potentially easing the looming supply shortages impacting automakers globally. Despite these developments, industry observers note that structural challenges in chip supply remain. The situation underscores the geopolitical complexities entwined with critical technology supply chains and the efforts to balance national security concerns with economic stability.