The battle for control over Nexperia, a critical supplier of automotive semiconductor chips, has once again intensified despite earlier hopes for geopolitical progress.
Driving the news: Speaking for the first time publicly since the dispute began, Wingtech Chairwoman Ruby Yang says global chip supplies are still at risk unless the Chinese tech company’s control over Nexperia is restored.
What they’re saying: “Each day the dispute continues, the damage to the global industrial chain, international investment confidence and the shareholders deepens,” Yang told Bloomberg.
For context: Currently, court-appointed administrators in the Netherlands, where Nexperia is headquartered, have the power to reverse or block management decisions at the company.
They also are retaining oversight of the company’s shareholding rights.
However, Yang is accusing Dutch officials of breaching a bilateral investment treaty with China and said local managers are using the crisis for their own personal gains.
But spokespeople for Nexperia entirely reject this claim, per Bloomberg.
Why it matters: Fresh uncertainty around chip supply has industry stakeholders on edge about production cuts, uneven allocations, and delayed vehicle arrivals—especially for tech-heavy models. Even if lots look better stocked today than in 2021–22, another semiconductor shock could quickly tighten inventory and put upward pressure on prices.
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Behind the scenes, some automakers are scrambling to adjust their operations.
Honda is suspending production at several of its facilities in Japan on January 5 and 6, with reduced operations until January 9, due to the conflict.
Nissan and Bosch have been sounding the alarm for weeks about the potential impact of supply shortages tied to the dispute.
The German Association of the Automotive Industry (VDA), which represents Volkswagen, Mercedes-Benz Group, and BMW, has warned that the conflict could significantly impact supply in Q1 of 2026.
Worth noting: At one point, there were hopes that U.S.-China trade negotiations would help resolve the Nexperia dispute. However, the Trump administration now appears to be easing its crackdown on Beijing’s chip policies, opting not to impose additional tariffs on Chinese chips until 2027—even as the U.S. continues to accuse China of unfair trade practices in the semiconductor sector.
Looking ahead: Wingtech and Nexperia held their first round of talks last week in hopes of finding a resolution.
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