A crisis at chipmaker Nexperia sent automakers scrambling. Here's what to know

Core Viewpoint - The power struggle over Nexperia, a Chinese-owned Dutch semiconductor maker, is impacting global auto production by disrupting the semiconductor supply chain, although there are indications that the crisis may be nearing resolution [1] Group 1: Company Overview - Nexperia is a semiconductor manufacturer that produces simple semiconductors such as switches and logic chips, which are essential for various automotive functions including adaptive LED headlight controllers and electric vehicle battery management systems [4] - The company was spun off from Philips Semiconductors two decades ago and was acquired by China's Wingtech Technology in 2018 for $3.6 billion [5] - Nexperia has wafer fabrication plants located in the UK and Germany, and its assembly and testing center in Guangdong, China, accounts for approximately 70% of its end-product capacity [5] Group 2: Geopolitical Context - The dispute over Nexperia is part of a larger geopolitical struggle between the U.S. and China regarding technology supremacy, with Europe caught in the middle [6] - The U.S. placed Wingtech on its "entity list" due to national security concerns, which has led to export controls affecting Nexperia and its subsidiaries [6] Group 3: Recent Developments - The Dutch government invoked a World War II-era law to take control of Nexperia due to national security concerns and governance issues, aiming to protect crucial technology know-how [3] - A Dutch court has supported the Dutch ministry's request to remove Nexperia's Chinese CEO, Zhang Xuezheng, to avoid potential trade restrictions [4]