regulation

Tensions between China and Europe over control of semiconductor technology have exploded into open conflict. In a dramatic ruling, a Dutch court removed chipmaker Nexperia from the control of its Chinese parent company Wingtech, triggering a cascade of global consequences.

Netherlands Seizes Control, China Furious
The spark was lit in October 2025, when a Dutch court ruled that Wingtech Technology had secretly transferred technology from Europe to China. The court removed Wingtech founder Zhang Xuezheng as CEO and handed over Nexperia’s control to a Dutch supervisory team. The result? The company was split in two — a European division and a Chinese mega-factory in Guangdong, now cut off from its European counterpart.
The ruling led to immediate supply freezes. Nexperia’s Dutch team halted wafer shipments to China, and the Guangdong factory suspended cooperation. Panic followed: banks pulled out hundreds of millions of dollars, including an unused $800 million credit line. Despite this, Nexperia insists it remains debt-free and financially stable.

Europe Draws Red Lines, China Threatens Retaliation
European governments justified the move as a matter of national security, while China blasted the Netherlands for political interference. Wingtech Chairwoman Ruby Yang accused the Dutch government of “inappropriate interference” and said the company was now pursuing a “self-rescue production” strategy inside China.
The battle isn’t over. A new hearing is underway in Amsterdam, where the court is deciding whether to launch a full investigation into Nexperia’s management. If approved, the case could drag on for years. If not, Wingtech may regain its stake. Either way, both sides are gearing up for a legal war.

Carmakers Caught in the Crossfire
Global automakers are already feeling the shockwaves. Honda shut down factories, Volkswagen scrambled for chip supplies, ZF Friedrichshafen slashed production, and Bosch began flying wafers across continents just to keep assembly lines running. The process is expensive, slow, and unsustainable.
Meanwhile, the Dutch Nexperia team is seeking to expand chip production outside China, negotiating with clients on new factories in Southeast Asia. Wingtech, for its part, is trying to keep its Chinese division alive by sourcing wafers from alternate suppliers.

The Global Chip Crisis Reveals Fragile Geopolitics
As Europe moves to reduce its reliance on China, Beijing is pushing back hard. Some exports from Nexperia have resumed, but the trust is broken.
What started as a corporate dispute has now become a symbol of the new technological cold war, where semiconductors are no longer just hardware — they are strategic weapons in a geopolitical showdown.

#china , #Eu , #Geopolitics , #Regulation , #technews

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