Car manufacturers who have suffered as a result Nexperia The chip saga could soon see some relief as the Dutch and Chinese governments make progress in their talks.
The Dutch government temporarily suspended a year-long emergency decree dated Oct. 14 that prohibits Nexperia from relocating parts of its business, firing executives and making decisions without the Dutch government’s permission.
This move comes after what the company describes as a “constructive dialogue” between the Dutch and Chinese governments.
However, a separate decision by the Dutch Enterprise Chamber – a division of the Amsterdam Court of Appeal – remains in place. This means that the former CEO Zhang
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Nexperia is a major supplier of “legacy” semiconductors for vehicles and consumer electronics. In the car, these chips control various functions such as power steering, airbags, central locking, electric windows, etc. Nexperia is the last of its kind to operate factories in Europe.
Before the current crisis, Nexperia manufactured chips in Europe and sent 80 percent of them to China for processing, testing and packaging.
A spokesperson for China’s Ministry of Commerce told Automotive News Europe that the move by Dutch authorities was a “first step in the right direction.” As part of the détente, the Chinese government has eased some of the export restrictions it had imposed on Nexperia’s Chinese arm.
The VDA, the association of German automobile manufacturers, warned: “The supply of Nexperia parts remains uncertain and negative effects on production cannot currently be ruled out.”
In a media statement, Nexperia BV, the company’s Netherlands-based global holding company, said it continues to work with customers on “alternative supply chain solutions” to the current crisis.
Nexperia China is also accused of ignoring headquarters orders, refusing to pay for wafers, abusing corporate seals, setting up unauthorized bank accounts and instructing customers to transfer money there.
Timeline of a chip crisis
In 2019, Chinese company Wingtech bought chipmaker Nexperia, the former division of Philips Semiconductor, for around US$3.6 billion (AU$5.6 billion).
Since 2023, Nexperia BV management has been sending warnings to the Dutch government about CEO Zhang Xuezheng’s activities. Dutch authorities claim they have evidence that Mr. Zhang planned to move production equipment, intellectual property and finances to China.
Wingtech was placed on the US trade restricted list in December 2024. In June 2025, the US warned Nexperia that it would also be affected by trade embargoes if CEO Zhang Xuezheng was not removed, a threat the company made good on in September.
As a result, the Dutch government invoked a Cold War-era law that essentially gave it veto power over the company, while a Dutch court removed Mr. Zhang as CEO. In retaliation, the Chinese government banned Nexperia’s local factories from exporting chips.
Before things got going, Nexperia controlled about 40 percent of the automotive chip market in Europe. There are contracts with Mercedes-Benz, BMW, Toyota, Stellantis and Volkswagen. The worst affected so far is Volkswagen, which had to stop production of the Golf at its Wolfsburg plant at the end of October.
