China's Commerce Ministry on Wednesday demanded that the Netherlands "immediately correct its mistakes" over chipmaker Nexperia, escalating a standoff that has disrupted global semiconductor supply chains and triggered warnings from automakers about component shortages. The Dutch government in September invoked a Cold War-era law to effectively seize control of the Chinese-owned chipmaker, reportedly after the United States raised security concerns. China responded by blocking Nexperia products from leaving the country.

Nexperia manufactures billions of foundation chips -- transistors, diodes and power management components -- that are produced in Europe, assembled and tested in China, and then re-exported to customers worldwide. These low-tech, inexpensive chips are essential in almost every device that uses electricity, from car braking systems and airbag controllers to electric windows and entertainment systems.

The Commerce Ministry spokesperson said the Netherlands "remains indifferent and stubbornly insists on its own way, showing absolutely no responsible attitude towards the security of the global semiconductor supply chain." Dutch Economy Minister Vincent Karremans has repeatedly defended the intervention. Auto industry groups have warned that disruptions have not been fundamentally resolved. Japan's Nissan and German supplier Bosch have flagged looming shortages, and the German Association of the Automotive Industry warned of elevated supply risks "particularly for the first quarter" of 2026.

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