The Nexperia crisis began when the Dutch government seized control of the Chinese-owned chipmaker in late September, citing national economic security risks concerning critical semiconductor technology.
In response, China’s Ministry of Commerce imposed an export ban on Nexperia’s finished components, which are largely packaged in China. This immediately created an acute supply shock for essential automotive chips globally, threatening assembly line halts.
Subsequent diplomatic efforts led to partial export exemptions from China for civilian-use chips, temporarily easing the crisis.
Yet, uncertainty remains. How will this fast-evolving crisis unfold? In this article, UniBetter will take a closer look at the rapidly shifting situation that highlights the fragility and volatility of today’s global supply chain.
What Happened with Nexperia?
Nexperia, headquartered in the Netherlands, is a major global producer of discrete semiconductors used in power regulation, voltage control, and signal management across automotive and electronic systems. Originally part of NXP Semiconductors, Nexperia was acquired by China’s Wingtech Technology in 2018.
On September 30, 2025, the Dutch government invoked a little-known law—the Goods Availability Act of 1952—in an emergency move to take control of Nexperia.
Shortly after, on October 4, China’s Ministry of Commerce issued an export control order, blocking Nexperia’s Chinese subsidiaries and subcontractors from exporting components made in China. In response, Nexperia’s China management reportedly defied directives from the headquarters in the Netherlands.
As tensions escalated, on October 29, Nexperia’s Dutch headquarters suspended wafer shipments to its Chinese assembly plants. This move further deepened uncertainty across the automotive and electronics industries.
By late October, major automakers and industry groups—including VDA and ACEA —warned that auto chip shortages could halt production within weeks.
On November 9, China eased some export restrictions on automotive chips and agreed to hold talks with the Dutch Ministry of Economic Affairs to address the growing Nexperia crisis.
Why the Nexperia Chip Crisis May Cause Car Chip Shortage?
Nexperia may not produce the most advanced semiconductors, but it manufactures billions of so-called “foundation” chips, such as transistors, diodes, and power management components. While most of these chips are produced in Europe, their assembly and testing are concentrated in China—around 70% are sent there for final processing before being re-exported to Europe and other regions.
Although these chips are relatively simple and low-cost, they are critical in automotive systems, including door locks, air conditioning, and speedometers. Additionally, Nexperia company’s “simple” chips are widely relied upon by many carmakers and Tier 1 suppliers, such as Bosch, Continental, Kostal, Magna, and Mitsubishi Electric. Last year, Nexperia generated $2 billion in sales.
Therefore, if Nexperia cannot quickly resume chip exports, the automotive industry could face severe supply pressures. Demand remains high, while alternatives are limited. Switching to new suppliers is not straightforward, as they must meet automotive-grade standards and undergo full recertification, which is both time-consuming and costly.
Immediate Impact on Global Automakers
The global automotive sector felt the ripple effects of the Nexperia company crisis, with several leading automakers and industry associations issuing warnings about potential production slowdowns. Here is how the global OEMs have reacted:
- The European Automobile Manufacturers’Association (ACEA) warned that a halt in Nexperia chip deliveries could cause major interruptions in vehicle manufacturing throughout Europe.
- The Alliance for Automotive Innovation, representing top US carmakers, said production in the US and other countries could be impacted unless Nexperia shipments resumed quickly.
- Germany’s automotive association, the Verband der Automobilindustrie (VDA), cautioned that if the supply of Nexperia’s discrete chips remains disrupted, vehicle production in the country could be impacted.
Future Outlook and Insights
The resumed exportation of some Nexperia automotive chips marks a positive development. Yet, the crisis has highlighted the significant vulnerabilities in the automotive chip supply chain.
Suppliers with diversified production footprints across regions share a clear advantage in such situations. Strategically working with multiple vendors and maintaining sufficient component inventories also serve as critical safeguards for production continuity.
Ultimately, a truly resilient system requires transparent and equitable international cooperation. Recent production warnings from global automakers—including Mercedes, Volkswagen, BMW, Renault, Volvo, and the temporary halt of Honda’s popular HR-V—illustrate just how a small chip can disrupt global operations.
Looking ahead, the full reopening of Nexperia chip exports remains essential for industry resilience and long-term planning.
UniBetter: Your Reliable Electronic Component Partner Any Time
In times of supply uncertainty, UniBetter provides dependable sourcing solutions for industries that rely on timely access to high-quality electronic components. Here is how:
- 16+ Years of Experience: Trusted by over 3,000 global clients across seven locations.
- Extensive Supply Network: Access to more than 7,000 verified suppliers for quick sourcing of rare, obsolete, and high-demand components.
- Fast Quotation Service: Receive a Bill of Materials (BOM) quote within two hours, minimizing production delays.
- CSD Quality Management System: Every component undergoes standardized testing and inspection for reliability and consistency.
- Cost Optimization: A global sourcing team secures competitive pricing while maintaining strict quality standards.
- Obsolescence Support: Proactive sourcing and engineering assistance to maintain component availability.
- Excess Inventory Management: Efficient resale channels across UniBetter’s customer network to reduce losses.
Wrapping Up
The Nexperia crisis highlights the interconnectedness of global chip supply chains. Even short disruptions can slow production across the automotive industry. In such times, reliable sourcing partners are essential.
UniBetter provides that stability through fast delivery, strict quality control, and access to thousands of verified suppliers. For manufacturers seeking consistent supply and trusted support, UniBetter remains a dependable partner for keeping operations on track.
Want to learn more about our services and solutions? Click here to contact us!
References:
- https://www.wral.com/story/a-crisis-at-chipmaker-nexperia-sent-automakers-scrambling-heres-what-to-know/22238604/
- https://www.bbc.com/news/articles/c0rp2514g4qo
- https://www.z2data.com/insights/the-nexperia-chip-crisis-explained
- http://www.news.cn/world/20251108/b242fa4c2a8d4641a618de7dfa12c5db/c.html
- https://finance.yahoo.com/news/exclusive-nexperia-suspends-supplies-wafers-075250823.html
- https://www.cnbc.com/2025/11/10/nexperia-parent-wingtech-shares-beijing-china-signals-thaw-in-tensions-with-netherlands-dutch-hague.html
- https://www.cnbc.com/2025/11/01/where-the-nexperia-auto-chip-crisis-stands-now.html
- https://www.tomshardware.com/tech-industry/semiconductors/nexperia-fallout-threatens-automobile-production-as-japanese-carmakers-warn-of-supply-disruptions-while-european-companies-prep-assembly-line-shut-downs-mature-node-chip-market-in-crisis-as-supply-dwindles
- https://www.acea.auto/press-release/acea-calls-for-quick-resolution-to-critical-chip-supply-shortage/
- https://www.reuters.com/business/autos-transportation/automaker-group-warns-nexperia-chip-supply-issue-could-quickly-disrupt-us-2025-10-17/
- https://www.reuters.com/business/retail-consumer/german-auto-association-warns-risk-production-nexperia-dispute-2025-10-21/