China blames the Netherlands for global chip supply chaos amid Nexperia dispute

China’s Ministry of Commerce has accused the Netherlands of causing “unrest and chaos” in the global chip industry, saying that the Dutch government’s seizure of Nexperia has thrown the semiconductor supply chain into disarray. The ministry has called on the Netherlands to refrain from meddling in corporate affairs and to seek a practical resolution to the dispute over Nexperia, a company owned by China’s Wingtech.

The ministry said that the Dutch government’s lack of cooperation and constructive measures has deepened the worldwide chip supply chain crisis, even though Beijing has made what it describes as “reasonable requests.”

The Netherlands and China are locked in a political standoff over Nexperia. The Dutch government placed the Nijmegen-based company under supervision and ousted it's Chinese CEO to prevent the transfer of technology and intellectual property from Nexperia’s European division to China. Beijing retaliated by halting Nexperia’s chip exports from China, but that ban was lifted last Saturday.

Nexperia’s chips play an important role in vehicle production, and the export freeze triggered shortages across the auto industry. On Sunday, Nexperia China, the company’s Chinese division, stated that its stock levels are adequate to guarantee a reliable flow of chip deliveries.

On Tuesday, China’s Ministry of Commerce reaffirmed its commitment to defending the interests of Chinese firms and to maintaining stability in the global semiconductor supply chain. The ministry also called on the Netherlands to act responsibly and cooperate with China to keep chip production and trade running smoothly.

The Dutch government says discussions with China are continuing. In a statement, the Ministry of Economic Affairs noted that it is in ongoing contact with Chinese officials and international partners to find a constructive resolution that serves the interests of both Nexperia and the broader economies involved.

China’s comments came after European Commissioner for Trade and Economic Security, Maroš Šefčovič, said that progress was being made in resolving the dispute. Writing on X on Monday, he noted that the European Union, working closely with the Netherlands, is engaged in constructive discussions with China.

The shortage of Nexperia chips currently remains unresolved, the chief executive of German industrial supplier Schaeffler has said. “The issue is far from settled,” Schaeffler CEO Klaus Rosenfeld told analysts, adding that despite the difficulties, his company has so far “not had to cut off any customers.”