In October 2025, the Dutch government froze assets worth 14.7 billion RMB of Nexperia, a subsidiary of Wingtech Technology, citing “national security” and took over its equity, cutting off wafer supply from the Dongguan factory. This turmoil stems from China’s 30 billion acquisition of the nearly bankrupt Nexperia in 2017, making it a giant with a 15% share of the global automotive-grade chip market. After the U.S. Department of Commerce placed Wingtech on the Entity List in 2024, the Netherlands intervened through the Commodity Supply Act, attempting to weaken China’s control over critical chip technology through political means.
1. The Strategic Intent of the Netherlands
Nexperia’s core advantage lies in automotive-grade power chips (such as MOSFETs and IGBTs), which are the “heart” of new energy vehicles. By controlling Nexperia’s headquarters, monopolizing its design patents and EDA tool licenses, and cutting off wafer supply from the Dongguan factory, the Netherlands aims to choke off China’s local production capacity. This move not only consolidates its dominance in the global automotive chip sector but also aligns with the U.S. “chip war” strategy to prevent China from making breakthroughs in mature process technologies.
2. China’s Counterattack and Response
In response to the supply cut, China has adopted a dual strategy of “countermeasures + alternatives”:
1. Diplomatic Countermeasures: The Ministry of Commerce has demanded that the Netherlands cease interfering in corporate affairs and promote exemptions from export controls to restore Nexperia’s supply to China.
2. Technological Alternatives: The Dongguan factory has initiated a domestic breakthrough, collaborating with foundries like SMIC and Hua Hong, with inventory sufficient to last until the end of the year, and plans to establish an independent R&D system in the medium to long term.
3. Market Deterrence: The Dongguan factory accounts for 70% of the global packaging and testing capacity; if supply to European automakers is cut off, they will face a “chipless” crisis, with estimated losses for the German automotive industry exceeding 20 billion euros per month.
3. The Dilemma of the Global Supply Chain
European automakers (such as Volkswagen and BMW) rely on Nexperia chips, but shifting to the Chinese supply chain entails political risks; Chinese automakers (BYD and NIO) face challenges in mass production of intelligent electric drive systems; Japanese automakers (Toyota and Honda) are urgently negotiating with Nexperia China to bypass the Dutch headquarters for direct procurement.
4. The Key to Future Games
If the Netherlands forcibly separates Nexperia China, it will accelerate the process of self-sufficiency in automotive-grade chips in China, forcing domestic companies to break through technological barriers. With the capacity reserves of 8-inch and 12-inch wafer fabs, China can achieve alternatives within six months. The Ministry of Commerce’s exemption from export control policies also opens application windows for domestic chips.
This battle is essentially a microcosm of the Sino-U.S. tech war within the automotive supply chain. The Netherlands attempts to maintain a technological monopoly through political manipulation, while China defends its supply chain sovereignty with “countermeasures + alternatives.” In the next six months, who can find a balance between industrial autonomy and market resilience may determine the direction of global supply chain restructuring.