The logo of Chinese-owned semiconductor company Nexperia is displayed at the chipmaker's German facility, after the Dutch government seized control and auto industry bodies sounded the alarm over the possible impact on car production, in Hamburg, Germany, Oct. 23, 2025.
Netherlands-based chipmaker Nexperia is at the heart of a standoff between the European Union, the U.S. and China that has triggered a near-crisis for global automakers.
The Dutch government seized control of Nexperia, owned by the Chinese company Wingtech , in October, citing national security concerns. The move prompted Beijing to block Nexperia products from leaving China.
Meetings are underway in Europe Saturday to attempt to defuse the escalating issue, and Chinese and U.S. authorities appear to be opening up a pathway for Nexperia's China-based operations to resume exporting critical automotive chips.
Spokespeople for the White House and Nexperia did not immediately respond to a request for comment.
For now, however, the auto industry's supply chain still hangs in the balance.
The dispute is threatening vehicle production worldwide as automakers warn of looming shortages of the chipmaker's components, which are critical to basic electrical functions in cars and challenging to replace on short notice.
The battle has unfolded amid heightened scrutiny of Chinese-linked tech firms from Western governments, including the U.S., which recently tightened export-control rules to limit technology transfers to Chinese-owned entities.
Nexperia's owner, Wingtech, was put on a U.S. blacklist in December 2024 for its alleged role "in aiding China's government's efforts to acquire entities with sensitive semiconductor manufacturing capability."
Here's what to know about where the dispute stands, and why it matters.