Nexperia crisis: how US-China tensions disrupt a global chip supply chain

Core Insights - The dispute between China and the Netherlands regarding Nexperia illustrates how geopolitical tensions can disrupt global supply chains [1] - Nexperia, a multinational company, has a significant global presence, shipping over 110 billion products annually to major clients like Apple, Tesla, and Samsung [2] Company Overview - Nexperia is based in Nijmegen, Netherlands, with fabrication plants in Germany and the UK, and assembly facilities in Asia, including China, the Philippines, and Malaysia [1] - The company is wholly owned by Wingtech Technology, which is blacklisted by the US, making Nexperia subject to US sanctions [4] Recent Developments - Dutch authorities took control of Nexperia's management and removed its Chinese CEO, Zhang Xuezheng, following US export control restrictions [3] - In response, the Chinese commerce ministry banned Nexperia China and its subcontractors from exporting finished components produced in China [5] Geopolitical Implications - The conflict reflects broader geopolitical tensions and the trend of decoupling in the technology industry and supply chains [7] - Nexperia's business model of "developed in Europe, made in China" is now considered unsustainable under the new regulatory environment [7]