The Dutch government’s control of Chinese semiconductor manufacturer Nexperia for security reasons has affected the supply network of European automakers such as BMW.
Minister of Economic Affairs invokes Goods Availability Act
🟧 Dutch government’s intervention in Nexperia affects the automobile supply network
The Dutch Ministry of Economy took control of Nexperia under the emergency law to prevent technology leakage. Harmful decisions can be stopped, while production will continue. Nexperia was acquired by Wing Tech after the spin-off from NXP and supplies basic semiconductors such as transistors and diodes. BMW said that some supply networks were affected and that it would maintain production while assessing risks.
🟧 Economic security and US-China friction
This intervention was carried out in the context of European economic security and technological friction between the United States and China. The Extraordinary Court found that Nexperia’s management was flawed and threatened with technology leakage, and the government applied a law that allowed companies to intervene.
Wingtech is subject to U.S. export controls, and China has banned the export of certain Nexperia products, and regulations in both the United States and China have increased the supply risk of basic semiconductors.
🟧Summary
Geopolitical risks surrounding the basic components of semiconductors are affecting the European automotive industry. Disruptions in the supply of discrete semiconductors could lead to production halts, forcing companies to urgently diversify their supply networks and manage risk.
With government intervention and restrictions expected to continue due to US-China friction, efforts to strengthen supply chains are likely to accelerate.
