China and Nexperia Initiate Talks to Resolve Semiconductor Supply Chain Issues

On December 22, 2025, China's Ministry of Commerce confirmed that Wingtech Technology, the Chinese parent company of Dutch semiconductor firm Nexperia B.V., held their first round of talks the previous week. This engagement marks the initial formal discussions between the two companies amid ongoing tensions regarding ownership and supply chain disruptions. Both parties have agreed to maintain open lines of communication as they navigate these complex issues.

China Confirms Initial Talks Between Wingtech, Nexperia, Urges Constructive Negotiations

The discussions were prompted by concerns over low wafer inventories at Nexperia's Dongguan plant, which have contributed to chip shortages affecting both Chinese and foreign automobile manufacturers. The Ministry of Commerce emphasized the importance of restoring stable production and delivery of semiconductor components, highlighting the sector's critical role in the global automotive industry. The ministry has previously taken steps to alleviate supply chain pressures by granting exemptions for eligible chip exports, aiming to create a conducive environment for dialogue.

China Confirms Initial Talks Between Wingtech, Nexperia, Urges Constructive Negotiations

China's Ministry of Commerce has urged the Dutch government to revoke its administrative order that has impacted Nexperia's operations. The ministry argues that such intervention has exacerbated the situation and called for the Dutch side to create favorable conditions for corporate consultations. It insists that resolving internal disputes through negotiations is essential for restoring the semiconductor supply chain, which is vital for both Chinese and international manufacturers operating in China.

China Confirms Initial Talks Between Wingtech, Nexperia, Urges Constructive Negotiations

The Ministry of Commerce reiterated that the root cause of the issues surrounding Nexperia lies in "improper administrative intervention" by the Dutch government. It has called for immediate action to alleviate concerns regarding chip shortages globally. The ministry's spokesperson stated, "To fundamentally eliminate concerns among relevant companies worldwide about chip shortages, the Dutch government should immediately rescind the administrative order."

Global Times

Critics of the Dutch government's actions argue that the administrative order has hindered the operational capabilities of Nexperia, thereby affecting the broader semiconductor supply chain. They contend that the Dutch government should prioritize corporate autonomy and facilitate negotiations rather than impose regulatory restrictions.

Global Times

As both companies continue their discussions, the focus will remain on resolving ownership issues and restoring supply chains. The outcome of these negotiations could have significant implications for the semiconductor industry, particularly in light of the ongoing global demand for chips in automotive manufacturing.

China Confirms Initial Talks Between Wingtech, Nexperia, Urges Constructive Negotiations

• "To untie the bell, you need the person who tied the bell." — Ministry of Commerce Spokesperson

Global Times

• "Restoring stable production and delivery of semiconductor components is in the shared interest of all parties involved." — Ministry of Commerce Statement

China Confirms Initial Talks Between Wingtech, Nexperia, Urges Constructive Negotiations

• "The Dutch government should create favorable conditions for corporate consultations and restore chip supplies as soon as possible." — Ministry of Commerce Spokesperson

Global Times