China has warned that an escalating dispute involving semiconductor manufacturer Nexperia could threaten global chip supplies, potentially creating new risks for the automotive industry.
According to Reuters, China’s Commerce Ministry said tensions surrounding the Dutch-headquartered chipmaker could destabilise semiconductor supply chains if the conflict disrupts production or shipments.
The dispute centres on Nexperia’s relationship with its Chinese operations following geopolitical tensions between Europe and China over technology ownership and national security concerns. Nexperia had previously been owned by Chinese electronics group Wingtech, but the Dutch government intervened in 2025, citing security risks and moving to assert control over the company’s operations.
Reuters reported that the latest escalation occurred when Nexperia’s headquarters disabled the IT access of employees at its Chinese subsidiary. Chinese authorities criticised the move, warning it could create “new conflicts” and potentially disrupt operations within the company’s Chinese facilities.
Nexperia has acknowledged the IT access restrictions but has rejected suggestions that production has been affected.
The situation is being closely watched because Nexperia is a major producer of widely used semiconductor components, including diodes, transistors and other discrete chips. These components are essential to a range of automotive systems, from power management electronics and sensors to safety and driver-assistance systems.
Although less complex than advanced processors, such components are produced in large volumes and are critical to vehicle production.
The global automotive sector experienced significant disruption during the COVID-19 pandemic when semiconductor shortages forced manufacturers to halt production and delay vehicle deliveries.
Industry analysts told Reuters that any sustained disruption to suppliers such as Nexperia could once again ripple through automotive manufacturing and other industrial sectors that rely heavily on semiconductor components.
China’s Commerce Ministry said it remains concerned about the potential impact on global supply chains, warning that the dispute could create uncertainty for manufacturers already navigating an increasingly complex geopolitical environment.