China warns of global chip shortage as Nexperia dispute escalates

China has warned that renewed tensions involving Dutch semiconductor company Nexperia could trigger another disruption in the global chip supply chain.

In a statement issued Saturday, the Ministry of Commerce of the People's Republic of China said growing disputes between Nexperia’s headquarters in the Netherlands and its Chinese subsidiary could create fresh obstacles for negotiations and potentially destabilise semiconductor production.

The warning follows an incident in which Nexperia’s China-based packaging division accused the company’s Dutch leadership of disabling internal office accounts for employees in China. 

According to Beijing, the move has intensified tensions between the two sides and complicated ongoing discussions aimed at resolving the conflict.

The disagreement stems from a decision by authorities in The Hague to take control of Nexperia from its Chinese parent company, Wingtech Technology. 

In response, Beijing imposed export controls on certain Nexperia chips manufactured in China last year, a move that temporarily disrupted production in the global automotive industry because the components are widely used in vehicle electronics.

Although the semiconductor shortage that followed has since eased after diplomatic negotiations, the dispute has continued. 

Nexperia’s Chinese subsidiary declared independence from its Dutch parent after Wingtech’s removal, and both sides have accused each other of negotiating in bad faith.

The Dutch headquarters has also reportedly halted wafer shipments to the company’s assembly and testing facility in Guangdong province, further complicating operations.

China’s commerce ministry warned that if the conflict results in another global semiconductor shortage, responsibility would fall on the Netherlands.

Despite mediation efforts from officials in Beijing, The Hague, and European Union institutions, the standoff between the two sides remains unresolved.