Nexperia Crisis Cripples Chip Supply for Carmakers

Nexperia was created in 2017 when NXP Semiconductors sold its Standard Products division to two Chinese firms — JAC Capital and Wise Road Capital — for $2.75 billion.

China retaliated against the Dutch government takeover by imposing export controls on Nexperia’s Chinese factories and subcontractors. (Photo: Nexperia X)

In 2019, Chinese computer equipment manufacturer Wingtech Technology acquired a controlling stake in the company for $3.6 billion, and its founder, Zhang Xuezheng, became CEO, James Norris reported for GlobalData.

The company is based in Nijmegen, the Netherlands, and around 60% of its products are sold within the automotive industry.

These chips are not cutting-edge but are vital for multiple control applications throughout vehicles, including lighting, airbag, and power window systems.

Nexperia’s customers tend to be Tier 1 suppliers and original equipment manufacturers (OEMs), largely based in Europe and the United States, with some in Asia.

The disruption is believed to be part of the broader U.S.–China struggle for economic leverage.

China has recently responded to new punitive U.S. tariffs on key Chinese imports by restricting exports of rare earth metals — critical inputs in the automotive and electronics industries.

Amid these tensions, Nexperia’s parent corporation, Wingtech, was placed on a U.S. “blacklist” of companies subject to export controls in December 2024. On September 29, 2025, the restrictions were expanded to include subsidiaries of blacklisted companies, including Nexperia.

A day later, on September 30, the Dutch government took control of Nexperia under a Cold War–era law allowing such actions for national security reasons.

The government cited “serious governance shortcomings” as the official rationale, though other reports suggest the move was influenced by U.S. pressure.

China retaliated by imposing export controls on Nexperia’s Chinese factories and subcontractors beginning October 4, 2025.

Even for semiconductor manufacturers with factories in Europe, the restrictions have been debilitating, as most chips are still shipped to China for final product integration and testing.