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Europe's Chip Dependency Grows Amid China's Supply Easing

11/12/2025

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Summary

Story summary

The Dutch government took over the Chinese-owned Nexperia chip factory in September, raising alarms in Europe’s automotive sector.
China agreed to ease chip-supply restrictions for a year, but only for civilian use.
Experts warn Europe faces a growing dependency on China in strategic sectors like clean technology.
Officials express frustration at the slow diversification of supply chains amid ongoing discussions on using trade-defense tools against China.

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Story summary

The Dutch government took over the Chinese-owned Nexperia chip factory in September, raising alarms in Europe’s automotive sector.
China agreed to ease chip-supply restrictions for a year, but only for civilian use.
Experts warn Europe faces a growing dependency on China in strategic sectors like clean technology.
Officials express frustration at the slow diversification of supply chains amid ongoing discussions on using trade-defense tools against China.