China warns of chip supply risks amid Nexperia conflict

China warns that a dispute between Nexperia and its Chinese unit could disrupt global chip supplies. The warning follows IT restrictions at a Guangdong plant.

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China has warned of a potential resurgence in the global semiconductor supply chain crisis due to an intensifying dispute between the Dutch chipmaker Nexperia and its Chinese subsidiary. The Ministry of Commerce in Beijing stated on Saturday that the escalating conflict poses a significant risk to international production, particularly within the automotive sector.

The friction began after the Netherlands government moved to seize control of Nexperia from its parent company, Wingtech Technology Co.,Ltd, in October. Nexperia's chips are widely utilized in automotive electronic systems, and previous supply disruptions have had widespread impacts on global vehicle manufacturing. While diplomatic negotiations initially helped ease the shortage, the internal struggle between Nexperia's Dutch headquarters and its China-based unit has reached a new impasse.

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