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Where the Nexperia auto chip crisis stands now as the U.S., China and EU race to contain fallout
CNBC· 2025-11-01 15:59
Core Points - The Dutch government has seized control of Nexperia, a semiconductor company owned by Chinese firm Wingtech, due to national security concerns, leading to significant geopolitical tensions affecting the automotive industry [2][4] - The seizure has resulted in Beijing blocking Nexperia products from leaving China, creating a potential crisis for global automakers reliant on these critical automotive chips [2][3] - Ongoing discussions in Europe aim to resolve the escalating issue, with indications that Chinese and U.S. authorities may allow Nexperia's operations in China to resume exporting essential components [2][4] Industry Impact - The automotive supply chain is currently at risk, with warnings from automakers about impending shortages of Nexperia's components, which are vital for basic electrical functions in vehicles and difficult to replace quickly [3] - The situation reflects broader scrutiny of Chinese-linked technology firms by Western governments, particularly the U.S., which has implemented stricter export controls to limit technology transfers to Chinese entities [4] - Nexperia's owner, Wingtech, was placed on a U.S. blacklist in December 2024 for allegedly assisting the Chinese government in acquiring sensitive semiconductor manufacturing capabilities, further complicating the geopolitical landscape [4]