A chain reaction triggered by the Netherlands freezing Chinese semiconductor companies has thrown European automotive giants like BMW and Volkswagen into a panic over production halts.
In just 17 days, from the Netherlands freezing Chinese semiconductor companies to European automakers sounding alarms over production stoppages, a game surrounding chips has put the global semiconductor supply chain under strain. On September 30, the Dutch government invoked the “Materials Supply Act” to freeze the global assets of Nexperia, a subsidiary of Chinese company Wingtech Technology, citing “national security”.
Following this, the Chinese Ministry of Commerce issued an export ban, leaving hundreds of millions of dollars worth of chips stranded in warehouses.BMW faces a monthly loss of 1 billion euros, and 16 European automakers jointly warned that “work stoppages are imminent”.
This seemingly sudden tech war is rooted in the Netherlands’ script of the U.S. “technology blockade”. On October 14, documents released by a Dutch court revealed that the U.S. and the Netherlands had communicated about “penetration rules”, with the U.S. directly requesting the replacement of Nexperia’s Chinese CEO and “adjustments to governance structure”.
01 Event Context: A Carefully Planned “Surprise Attack”
The actions of the Dutch government can be seen as a carefully orchestrated surprise attack. On September 30, the Netherlands used the “Materials Supply Act” to freeze Nexperia’s global assets and intellectual property, and forcibly replaced the Chinese CEO.
The timing of this action is intriguing—just one day before China’s National Day, almost immediately following the U.S. announcement of the “related party rules” on September 29.
The Netherlands’ actions are not isolated. In December 2024, the U.S. will place Wingtech Technology on the entity list; in September 2025, the U.S. will implement the “related party rules”; and then comes the Netherlands’ forced takeover.
This series of actions has a clear logic: the U.S. is attempting to cut off Chinese enterprises’ control over key nodes in the semiconductor supply chain through third-party “agents”.
Nexperia, as a core asset acquired by Wingtech Technology in 2019, generated revenue of 14.715 billion yuan in 2024 and has long provided automotive-grade MOSFET chips to companies like BMW, Volkswagen, and General Motors.
This “strangling” choice targets the “heart” of the new energy vehicle industry.
02 Behind the Game: The U.S. “Penetration Rules” and the Netherlands’ Dilemma
Chinese Ministry of Commerce spokesperson He Yongqian pointed out the essence of the issue at a press conference on October 16:“The U.S. ‘penetration rules’ are the origin of harm to Chinese enterprises”.
The Chinese side firmly opposes the Netherlands’ broad interpretation of the “national security” concept and direct intervention in corporate internal affairs through administrative means.
Documents released by the Dutch court on October 14 confirm that the U.S. and the Netherlands had communicated about the “penetration rules”. The U.S. requested the replacement of Nexperia’s Chinese CEO and “adjustments to governance structure” to avoid sanctions from the “penetration rules”.
The Netherlands’ reversal of attitude reveals its dilemma. On October 17, Dutch Minister of Economic Affairs Vincent Karremans publicly expressed a willingness to negotiate with China. This shift stemmed from the Netherlands realizing its “leverage” was insufficient.
ASML’s 2024 annual report shows that this global lithography giant generated revenue of 79.442 billion yuan in China, accounting for 36.1% of its global revenue. The number of EUV lithography machines in the Chinese market has reached 29% of global deliveries.
03 China’s Countermeasures: Precision Strikes and Supply Chain Damage Control
China’s response was swift and precise. In the face of the Netherlands’ freezing actions, China implemented two key countermeasures: export restrictions on Nexperia’s subsidiaries in China and strengthened controls on rare earth exports.
Many interpret China’s export ban as a “countermeasure”, but a more accurate definition is “supply chain damage control”. Information from Wingtech Technology’s official website indicates that Nexperia’s Guangdong base is its largest packaging and assembly center globally, and the Netherlands’ forced takeover is essentially an “illegal occupation of Chinese assets”.
China’s export ban clearly targets “the seized subsidiaries and subcontractors”, with the core logic being: if you illegally control my assets, you have no right to utilize Chinese production capacity.
Rare earth controls strike at the “throat” of the semiconductor supply chain. The rare earth control measures announced by China on October 19 may seem unrelated to the Nexperia incident, but they actually choke off key points in the semiconductor supply chain. Rare earths are essential raw materials for key magnetic materials in chip manufacturing; if the Netherlands continues to cooperate with “decoupling”, European semiconductor material suppliers will be the first to face supply shortages.
04 Chain Reaction: Global Automotive Industry in Crisis
European automotive giants have become the most direct victims of this game. A white paper from the China Semiconductor Industry Association shows that Nexperia’s automotive electronics business accounts for 45%, making it the third-largest power semiconductor manufacturer globally.
The IC Insights report bluntly states: after the implementation of China’s export ban, hundreds of millions of dollars worth of chips are stuck in Nexperia’s warehouses, with BMW facing a monthly loss of 1 billion euros, and 16 automakers jointly warning that “production lines will be forced to stop”.
The European Automobile Manufacturers Association (ACEA) urgently warned that if the dispute is not resolved by the end of October, the European automotive supply chain will face at least a 3-month interruption, with losses exceeding 20 billion euros, putting 100,000 jobs at risk.
Volkswagen’s procurement director stated that chip inventory is only sufficient to last three weeks, and the Wolfsburg plant in Germany is on the brink of halting operations; BMW and Mercedes’ new energy production lines are also stalled due to chip shortages.
Even the American Automotive Innovation Alliance, far away in North America, is applying pressure, warning that North American plants will be forced to reduce production starting in November, with Ford even threatening to hold the Dutch government accountable and reserving the right to claim damages.
05 Future Direction: The Game Yielding to Industrial Laws
News of the Netherlands seeking dialogue has emerged, but the Chinese side has yet to respond to the Netherlands’ negotiation proposal. How will this 17-day industrial chain shock ultimately conclude?
The call from the German automotive industry association is the most pragmatic: “Restart negotiations on the China-Europe investment agreement“—as the clamor of geopolitical games subsides, commercial laws will ultimately bring all parties back to the negotiating table.
Two truths have emerged: first, the U.S. “technology blockade” is backfiring on its allies. The Netherlands thought it could be a “beneficiary”, but it has first become a “cost bearer”; European automakers are paying the price for America’s geopolitical ambitions.
Second, China’s semiconductor self-sufficiency is not a “slogan”, but an inevitable outcome of being forced into it. Silan Micro announced on October 19 that it will invest 20 billion yuan to build a 12-inch analog chip production line, and the 2025 Bay Area Semiconductor Expo will gather over 600 global enterprises.
However, self-sufficiency does not mean “closed-door manufacturing”. Enterprises from over 20 countries and regions will exhibit at the Bay Area Expo, which precisely proves that the future of the global semiconductor industry does not lie on an island of “decoupling”, but on a continent of “cooperation”.
As the Dutch Minister of Economic Affairs publicly expresses a willingness to negotiate with China, workers at Nexperia’s Guangdong base are still working overtime— the chips they produce will eventually flow to the automotive production lines that need them.
ASML engineers are also debugging EUV equipment for Chinese customers, as the delivery deadlines in the contracts will not be affected by political games.
How will this 17-day industrial chain shock ultimately conclude? Perhaps the call from the German automotive industry association is the most pragmatic: “Restart negotiations on the China-Europe investment agreement”—No company wants to halt production lines for political correctness, and no country can win the future by “freezing assets”.