Nexperia HQ cheers announcements lifting block as Dutch government holds talks

Officials at Nexperia in the Netherlands said they welcomed recent statements from both the United States and China signaling that barriers stopping the company from shipping its chips may be lifted.

The company said on Sunday that its “focus is now on ensuring stability of supply to customers,” according to statements shared with reporters.

Nexperia did not comment on remarks made by its Chinese subsidiary, which said it intends to accelerate steps toward operating more independently.

Dutch officials said they are still holding talks with their Chinese counterparts, the U.S. government, and representatives from the auto and semiconductor sectors to find, as they described it, a “constructive way forward.”

The dispute over control of the company has already triggered shortages and raised alarms across the global auto industry.

Automakers around the world rely on Nexperia for large volumes of basic semiconductor components used in nearly every car model on the road.

Those components are small and inexpensive, but they connect batteries to motors, run sensors, manage braking systems, control airbags, power entertainment screens, and operate electric windows.

Disruption in supply has left automakers warning of production cuts if the situation drags on.

Governments respond to ownership and national security fight

Nexperia is owned by the Chinese company Wingtech, and the Dutch government took control of the chipmaker in October under a national security law from the Cold War era.

Officials said they were concerned that Wingtech planned to shift intellectual property to another business it controls.

A Dutch court suspended Nexperia CEO Zhang Xuezhen on grounds of mismanagement during the same period, adding another layer of tension to the dispute.

China responded weeks later by blocking Nexperia chips made or processed in China from leaving the country.

That immediately hit the supply chain, since about 70% of Nexperia’s chips begin production in Europe but are assembled and tested in China before being shipped to automakers in Europe and other regions.

With shipments halted, Nexperia told car manufacturers it could no longer guarantee supply.

Meanwhile, Western governments have increased scrutiny of companies linked to Chinese technology networks.

The United States added Wingtech to a government blacklist in December 2024, alleging the company “aided China’s government’s efforts to acquire entities with sensitive semiconductor manufacturing capability.”

The blacklist restricted Wingtech’s access to American technology and intensified the diplomatic pressure surrounding Nexperia.

Talks show signs of progress but risks remain

Meetings took place on Saturday in Europe as officials attempted to lower tensions. Reports on Friday said the United States plans to allow Nexperia to resume exports under a framework worked out during discussions between President Donald Trump and President Xi Jinping.

On Saturday, Chinese officials said they will exempt certain Nexperia products from export controls. The Chinese Commerce Ministry said it would “comprehensively consider the actual situation of the enterprise and exempt eligible exports.”

The ministry did not specify which products would qualify.

Automakers, including Volkswagen, Nissan, and Mercedes-Benz, had already warned in late October that supply problems could lead to production cuts.

While carmakers typically maintain small chip reserves and can sometimes shift to backup suppliers, they emphasized that switching suppliers quickly is difficult because these chips are deeply embedded in vehicle engineering and safety systems.

Nexperia reported $2 billion in sales last year. The company produces billions of the foundation-level chips that power everyday electronics, not just automobiles. These components are present anywhere electricity flows.

If the exemptions and export framework are finalized, they could ease immediate pressure on automakers.

But the broader fight over who controls Nexperia, how its technology is governed, and how security oversight is handled remains unresolved. The negotiations are not finished, and the supply chain remains fragile.

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