Global Semiconductor Supply Crisis

China has warned that the global semiconductor supply chain could once again face a crisis. This could happen due to new disputes between the Dutch chip manufacturing company Nexperia and its Chinese division, according to the Chinese Ministry of Commerce. The semiconductor chips produced by Nexperia are extremely important for automotive electronic systems worldwide, and any disruption in their supply could significantly impact the automotive industry. This issue has previously affected the global automotive sector. Last October, after the Netherlands removed control of Nexperia from its Chinese parent company Wingtech, China imposed export controls on Nexperia chips. These measures disrupted the global automotive production supply chain.

The current dispute has escalated following accusations by Nexperia’s Chinese division against the Netherlands headquarters. They claim that the headquarters in the Netherlands has deactivated all office accounts of employees in China. As a result, the Chinese division reports disruptions to daily operations and production processes. In response, the Chinese Ministry of Commerce stated that this step has complicated negotiations between the two companies, creating new problems and obstacles. They also emphasized that if this leads to another crisis in the global semiconductor supply chain, the Netherlands should be held responsible. However, while Nexperia’s Dutch division has not fully denied these accusations, they challenge claims that the IT measures have disrupted production activities at the assembly and testing facility located in China’s Guangdong region.

After Wingtech was removed from control, Nexperia’s Chinese division declared independence from its Dutch parent company, and since then both sides have accused each other of bad-faith negotiations. Meanwhile, the Netherlands headquarters has also stopped wafer supply to the Guangdong factory in China. Although mediation talks took place between China, the Netherlands, and the European Union, no stable solution has yet been reached. Analysts warn that if this dispute continues, it could once again severely impact the global semiconductor supply and the automotive industry.