by LU Keyan

Dutch Economic Affairs Minister Micky Adriaansens' decision to "suspend" a government order restricting Nexperia's operations has done little to resolve the deeper legal and governance battle that continues to constrain the China-owned chipmaker, raising fresh concerns for global automotive supply chains.

In a statement posted on X on Nov. 19, the minister said she had suspended an order under the Netherlands' Goods Availability Act, calling it the right moment to "take a constructive step" after recent developments and consultations with European and international partners.

The Dutch government barred Nexperia and about 30 global subsidiaries from making any changes to assets, IP, personnel or operations for one year, in a Sep.30 order, citing national security concerns and "serious government shortcomings".

China's Ministry of Commerce welcomed the suspension but said it remained only "a first step." Beijing reiterated that the root cause of the disruption would only be removed once the order is fully withdrawn. The ministry also criticized a separate ruling by the Enterprise Chamber — the Dutch corporate court — which stripped Wingtech Technology of effective control over Nexperia, calling it a key obstacle to resolving the dispute.

Wingtech, the Chinese company that acquired Nexperia in 2019, said in a statement the minister's suspension does not affect the Enterprise Chamber's emergency measures imposed on Oct. 7. Those measures remain fully in force, including the suspension of Chinese board directors and the trusteeship of nearly all Chinese-held shares — leaving Wingtech with just one voting share. The company added that it is working with international law firms to pursue further remedies.

People familiar with the matter told Jiemian News that Nexperia's normal operations remain severely disrupted. A lawyer who has followed the case said the Enterprise Chamber's decision is "substantively aligned" with the Dutch economic ministry's earlier pressure on the company. Even if the ministry withdraws its administrative order, he warned, "there is a risk that Dutch authorities could continue supporting European managers behind the scenes to restrict the rights of Chinese shareholders within the court’s framework."

Wingtech argues the dispute can only end if the Dutch government withdraws all intervention measures issued since September 2024 and if the judiciary reverses past rulings, including the share trusteeship and the suspension of Chinese directors, restoring the company's governance rights.

The dispute has drawn global attention as Nexperia is a key supplier of basic semiconductors to automakers such as Volkswagen and BMW. Its Dongguan plant produces over 50 billion components a year — roughly 80% of its global packaging capacity — meaning any prolonged disruption could ripple through auto production worldwide.

The Financial Times reported that automakers and Tier-1 suppliers are working "around the clock" to find alternative sources, with executives warning that Chinese inventories could run out by mid-December if European wafer supply does not resume. Reuters said Volkswagen, Honda and others are discussing a short-term workaround with Nexperia's European management — shipping wafers from Hamburg to China for packaging — while also evaluating replacement chips from onsemi and STMicroelectronics.