(MENAFN) The Netherlands’ seizure of the Chinese-owned chipmaker Nexperia has heightened fears of a global chip supply crisis, particularly for the automotive industry, according to reports.

Dutch authorities took control of Nexperia, owned by China’s Wingtech, citing management concerns and national security risks. The move comes amid rising tensions in the US-China chip war, signaling that geopolitical disputes are increasingly influencing industrial supply chains.

Nexperia produces chips for major car manufacturers across Europe, the US, and Japan, and disruptions in its operations could mirror the severe shortages experienced during the pandemic. While US President Donald Trump and Chinese President Xi Jinping reached a temporary chip deal on Oct. 30 in South Korea, ongoing friction between Beijing and Amsterdam keeps the possibility of broader supply issues alive.

The Netherlands assumed management of Nexperia on Oct. 1, replacing Chinese CEO Zhang Xuezheng over alleged management problems that threatened the continuity of critical technological expertise and production in both the Netherlands and Europe. Dutch Economy Minister Vincent Karremans emphasized the decision aimed to retain essential tech capabilities within Europe.

The seizure followed US pressure, as a delegation from Washington warned the Dutch government in June that Nexperia would be added to the US Entity List starting Oct. 1 unless its Chinese CEO was removed. Wingtech was previously added to the list in December 2024 under the Biden administration as part of efforts to prevent the transfer of sensitive technologies.

In response, China restricted exports of chips produced by Nexperia in China. The company’s Chinese unit reported on Oct. 17 that access to its European systems had been cut off and employee wages suspended, prompting the establishment of a local supply chain to maintain production and deliveries.

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