In Depth: Nexperia’s Plight Could Have ‘Severe’ Impact on Global Automakers

Sweeping regulatory actions taken by both Dutch and U.S. authorities have placed Chinese-owned chipmaker Nexperia Holding BV at the center of the intensifying U.S.-China technology conflict, raising alarms over the potential disruption of global semiconductor supply chains and the financial health of its parent company, Wingtech Technology Co. Ltd. The Netherlands seized effective control of Nexperia in September, citing economic security through Cold War-era legislation, following Wingtech’s addition to the U.S. Commerce Department's Entity List in December 2024. This intervention has prompted concerns among Nexperia’s customers, especially in China, and led Wingtech to warn of possible cash shortages if it cannot restore control over Nexperia soon [para. 1][para. 2][para. 3][para. 4][para. 5].

The Dutch Ministry of Economic Affairs enacted the Goods Availability Act on September 30, 2025, to prevent shortages of key electronic goods, barring Nexperia and its affiliates from altering assets, intellectual property, operations, or personnel for one year. The Dutch courts also suspended Wingtech founder Zhang Xuezheng’s duties at Nexperia and placed governance in the hands of an independent director. The U.S. simultaneously tightened export controls, ensuring that any company at least 50% owned by an entity on the U.S. Entity List would also face curbs, directly affecting Nexperia due to Wingtech’s status. This twin blow has forced Wingtech—whose semiconductor business now accounts for about 97.5% of revenue (4.3 billion yuan, or $604 million, in Q3 2025)—to caution about risks of revenue, profit, and cash flow declines, despite posting a dramatic 280% profit surge in the quarter due to strong automotive demand [para. 6][para. 7][para. 8][para. 9][para. 10][para. 11][para. 12].

China's Ministry of Commerce has criticized the Dutch intervention as an overstretch of the national security concept and interference in corporate governance, while announcing protective measures for its enterprises. Following this, Nexperia’s China unit instructed its staff to follow orders only from domestic management. Wingtech acquired full ownership of Nexperia between 2018 and 2020, with regulatory approvals from six countries. However, evolving Dutch and U.S. regulations prompted calls to impose operational independence between Nexperia and Wingtech, requests the Chinese parent rejected. The U.S. and Dutch governments saw replacing Zhang as CEO as essential for securing export exemptions, ultimately resulting in the Dutch government's invocation of emergency powers to secure semiconductor supply, a move with contentious legal justification [para. 13][para. 14][para. 15][para. 16][para. 17][para. 18][para. 19][para. 20][para. 21][para. 22][para. 23][para. 24][para. 25][para. 26].

The regulatory standoff has triggered global supply chain anxieties, as about 80% of Nexperia’s manufacturing capacity is based in China. China responded by restricting exports of certain products, compounding fears of production stoppages in Europe if chip supply is interrupted. Europe's auto sector has voiced particular concern, warning of potentially severe shortages. Nexperia clients report it would take at least six months to certify new components if Nexperia is forced to halt shipments. The export restrictions further threaten the company’s access to U.S. technology, weakening its position vis-à-vis competitors [para. 27][para. 28][para. 29][para. 30][para. 31][para. 32][para. 33][para. 34][para. 35][para. 36][para. 37].

A turning point came in November when the U.S. temporarily suspended the 50% ownership rule in exchange for China dropping retaliatory trade measures, following direct consultations between President Trump and Chinese President Xi Jinping. Subsequently, the Dutch government also suspended its restrictive ministerial order. Despite these moves toward de-escalation, Wingtech maintains that only full restoration of shareholder rights will resolve the crisis, and the impasse between the parent and Nexperia’s Dutch headquarters continues [para. 38][para. 39][para. 40][para. 41][para. 42][para. 43][para. 44][para. 45].