Nexperia’s supply chain tensions continue, threatening automotive production worldwide.

Nexperia, the Dutch semiconductor manufacturer, has publicly called on its China unit to take immediate action to restore supply chain operations, warning that customers across industries are facing “imminent production outages.”

The appeal, made in an open letter Thursday, comes after repeated attempts to communicate through conventional channels reportedly failed to produce meaningful responses.

“We welcomed the Chinese authorities’ commitment to facilitate the resumption of exports from Nexperia’s Chinese facility and that of our subcontractors, enabling the continued flow of our products to global markets,” the Dutch unit said. “Nevertheless, customers across industries are still reporting imminent production stoppages. This situation cannot persist.”

China Unit Responds

Wingtech Technology, Nexperia’s Chinese parent company, criticized the letter, calling it filled with “misleading and untrue allegations.” Wingtech blamed the “unlawful deprivation of control and shareholder rights” by Nexperia’s Dutch unit and the Dutch government for the ongoing supply chain disruption. The company accused Nexperia B.V. of attempting to construct a “de-China-ized” supply chain and permanently strip Wingtech of its shareholder rights.

Global Supply Chain Impact

Nexperia produces billions of foundation chips — including transistors, diodes, and power management components — that are essential in virtually all electrical devices. In the automotive sector, these chips are used for battery connections, lighting, sensors, braking systems, airbag controllers, entertainment systems, and electric windows.

The supply crisis began in September when the Dutch government invoked a Cold War-era law to seize effective control of Nexperia after U.S. security concerns were raised. In retaliation, Beijing moved to block chip exports from China, threatening a major disruption to automakers worldwide.

Although the Dutch government recently suspended its intervention following discussions with Chinese authorities, the dispute has not yet fully resolved, leaving supply uncertainty in place.

Industry Warnings

• Nissan and Bosch have warned of looming component shortages.
• The German Association of the Automotive Industry (VDA) cautioned that elevated supply risks could affect production, particularly in the first quarter of 2026.
• ING economist Rico Luman noted that supply chain uncertainties remain, with both finished chips and wafer shipments from Europe to China still in flux.

Luman compared the situation to China’s control over rare earth exports, highlighting the opacity and leverage China holds over global manufacturers dependent on Nexperia chips.

Outlook

Despite temporary progress in talks, the resolution of the Nexperia supply chain crisis remains uncertain, with potential ramifications for automotive production, electronics manufacturing, and global trade flows if normal operations are not restored promptly.