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Nexperia, the Netherlands-based semiconductor powerhouse owned by China's Wingtech since a $3.6 billion deal in 2019, fired off a desperate open letter to its Chinese operations on Thursday, pleading for swift action to restart crippled supply lines. After failed private talks, the Dutch unit warned of "imminent production outages" hitting clients in automotive and beyond, as essential chips like transistors and diodes pile up in China.
The standoff ignited in September when Dutch authorities seized control of Nexperia to block tech transfers to China, prompted by U.S. security flags after Wingtech landed on the U.S. entity list in December 2024. Beijing hit back with export bans on October 4, stranding finished products and halting wafer shipments from Europe due to unpaid bills. Wafer supplies remain tangled, echoing China's rare earth playbook and alarming giants like Nissan and Bosch.
Supply Chain at Stake
Nexperia churns out billions of low-cost, vital components power managers, sensors, brake controls that link batteries to motors in cars and power everyday electronics. Last week's Dutch suspension of intervention sparked optimism, but Chinese leaders have ignored calls, leaving global auto chains vulnerable. Wingtech demands full control restoration amid ongoing Dutch court appeals, with no quick fix in sight.
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