Nexperia Meltdown: Dutch Chipmaker and Chinese Parent Wingtech Locked in Public Feud as Auto Giants Brace for Shortages

Bloomberg, CNBC, the Financial Times, the Telegraph, and the Wall Street Journal contributed to this report.

The fight inside one of Europe’s most important chip suppliers just went very public.

Dutch chipmaker Nexperia has issued an open letter blasting its own Chinese operations for refusing to communicate and warning that customers — especially carmakers — are now facing “imminent production stoppages.”

The flare-up is the latest escalation in a geopolitical and corporate brawl that’s already disrupted global auto supply chains and forced governments in China, the Netherlands, and even the US to step in.

Nexperia’s Dutch headquarters published the open letter after it says its China unit ignored “repeated attempts” to reestablish contact — calls, emails, meeting requests, even formal legal correspondence.

“We’re still hearing from customers across industries that production outages are imminent. This situation cannot persist,” the company wrote, urging Nexperia China to restore normal supply flows immediately.

These chips aren’t glamorous, but they’re essential. Nexperia makes billions of “foundation semiconductors” — the tiny transistors, diodes, and power-management pieces that handle everything from car window switches and airbag sensors to lighting systems and battery connectors.

If these parts stop flowing? Cars don’t get built.

China’s Wingtech Technology, which bought Nexperia in 2019, fired back within 24 hours with a furious statement accusing the Dutch side of misrepresenting what’s happening.

According to Wingtech:

• The Dutch unit’s claims are “misleading and untrue.”
• The “real cause” of the chaos is Amsterdam’s “unlawful deprivation” of Wingtech’s shareholder rights.
• The Dutch government and Nexperia headquarters are allegedly trying to build a “de-China-ized supply chain” and permanently push Wingtech out.

Their bottom line:
Beijing wants full control restored — now — and says it has been trying to communicate.

This saga started in September when:

1. The Dutch government invoked a Cold War-era emergency law to seize control of Nexperia
   – reportedly after U.S. officials raised security concerns about Chinese ownership.
2. Beijing retaliated by blocking exports from Nexperia’s Chinese factories, which handle assembly and testing of the chips.

That move sent shockwaves through the auto industry. Companies like Nissan, Bosch, and major European manufacturers warned they were already seeing disruptions.

In early November, after talks between Xi Jinping and Donald Trump, China agreed to ease export restrictions and the Dutch government suspended its emergency action — supposedly clearing the way for normal operations.

Except the two sides of Nexperia still aren’t talking to each other.

Even with the political détente, the supply chain hasn’t recovered.

• Nexperia Europe halted shipment of wafers to China due to the internal feud.
• Nexperia China has limited chip stock left — reportedly only enough to last until early December.
• Export volumes have resumed but remain “way, way below what they used to be,” according to the European Automobile Manufacturers’ Association.

Some automakers are now reportedly sending their own teams to act as intermediaries between the warring divisions.

Carmakers across Europe and Asia have already slowed production to stretch existing inventories. But suppliers warn that may not be enough.

The German auto industry group VDA says supply remains “uncertain,” especially heading into early 2026. Nissan, Bosch, BMW, Mercedes-Benz, and Volkswagen have all raised alarms.

An ING analyst compared the situation to China’s rare earth export restrictions — another point where Europe found itself unexpectedly dependent on China.

Nexperia says it’s open to:

• direct talks;
• email discussions;
• or using a neutral third-party mediator.

Wingtech insists the Dutch side must first restore its shareholder rights.

Meanwhile, the Chinese government is urging the Netherlands to resolve the matter “with concrete actions.”

If the standoff continues, global automakers could face the same kind of chip crunch that crippled production during the pandemic.

And if things worsen? Some warn it could become one of the most damaging semiconductor supply shocks Europe has ever seen.

For now, one of the world’s most vital chipmakers is effectively at war with itself — and the clock is ticking.