Export controls on Nexperia fuel semiconductor supply chain risk
What started as a national security dispute in the Netherlands is now rippling across the global chip market.
The semiconductor world was jolted on October 9, 2025, by a dramatic policy shift. China imposed export restrictions on components manufactured by Nexperia’s China facilities. The move prohibited components produced in China, including Nexperia’s high-volume 80k-square-meter assembly site in Guangdong, from leaving the country.
This facility is one of Nexperia’s three assembly and testing centers, complementing its wafer fabrication plants in Germany and the United Kingdom. Upon the announcement, uncertainty descended on the semiconductor supply chain, leading to an influx of orders. However, Nexperia quickly issued instructions to its partners to withhold distributing parts, regardless of country of origin (COO), as the situation was addressed.
The semiconductor supply chain is grappling with surging demand, with no clear way forward as the situation develops.
Mounting pressures led to government action
The saga begins with the Dutch government’s recent intervention into Nexperia’s governance, citing “serious administrative shortcomings” and concerns over the continuity of critical chip production. Netherlands officials invoked a rarely used Cold War–era law to suspend Chinese control of Nexperia’s operations.
In the last year, tensions between the U.S. and China have been growing. Retaliatory tit-for-tat restrictions have grown more common since the introduction of the popular artificial intelligence (AI) model, ChatGPT. Since the global semiconductor shortage, countries have been working hard to boost domestic semiconductor manufacturing capabilities. Likewise, some countries have become more protective of what they excel in. For the United States, that is advanced semiconductor design.
Washington, under Biden and now Trump, continues to include companies on its “Entity List.” This list subjects members to additional licensing requirements for exports, re-exports, or transfers of items, as determined by the U.S. government. Inclusion on the Bureau of Industry and Security (BIS) list signals that the listed entity poses a risk to U.S. national security or foreign policy interests and requires a license before engaging in transactions involving U.S.-origin items.
Recently, several companies, including Arrow China and Arrow Electronics Hong Kong, have been added to the list. As one of the biggest distributors of electronic components, Arrow’s inclusion has made many organizations more wary.
Simultaneously, U.S. President Donald Trump has been ramping up pressure on Chinese tech firms. Wingtech, Nexperia’s parent company, has been on the U.S. entity list for some time. On October 1st, an Amsterdam commercial court ruled to suspend Wingtech CEO Zhang Xuezheng from his position as executive director at Nexperia. The court cited “well-founded reasons to doubt that the company was pursuing correct management policy or actions under Dutch civil law.”
Reuters notes that the court “Appointed Dutch businessman Guido Dierick to take Zhang's position with a 'deciding vote', and transferred control of almost all of Nexperia's shares to a Dutch lawyer for management.”
Wingtech protested the move, calling it discriminatory and politically driven. On Sunday, the company said it was consulting with lawyers and seeking government support to “protect the legitimate rights and interests of the company.”
Soon after, Chinese authorities barred Nexperia and its subcontractors from exporting China-assembled components. The restriction covers finished goods and subassemblies produced in China. Meanwhile, Nexperia components manufactured in other regions remain unaffected
Nexperia has said it is actively negotiating with both U.S. and Chinese authorities to try to lift or limit the controls. However, the situation is still ongoing. In the interim, Nexperia has advised its partners to hold stock, no matter where its COO is based.
Immediate risks: Lead Times, prices, and uncertainty
In the days after the announcement, orders for Nexperia parts surged. As one of the largest producers of components, the impacts across the market have quickly translated into harsh pricing adjustments.
With demand spiking, the supply cushion is rapidly shrinking, and allocation risk is rising. Even Nexperia components not originating in China are under upward pricing pressure. The rush to secure inventory is pushing margins and costs higher.
There’s no published timeline or pathway to resolution. Without that clarity, market volatility and speculative moves will continue to drive stress across procurement teams. Companies that depend heavily on a single supplier region now face heightened risk. The control move signals how quickly policy can choke off access. With rising geopolitical tensions and shifting U.S. trade policies, some organizations dependent on sole sources could face greater disruptions.
The Nexperia case illustrates several broader shifts:
- Nations are increasingly willing to intervene in supply chains for strategic assets, even at the expense of market norms.
- The U.S.-China trade war reflects an evolving playbook: using bans and restrictions to counter external pressures or reassert leverage.
- Companies will need agile, diversified architectures as trade policies impact the global supply chain.
- No manufacturer is entirely immune. If tensions escalate or ownership structures shift, export controls may cascade beyond Nexperia.
How to mitigate the disruption
While the decision has taken the global semiconductor supply chain by surprise, the recent Nexperia export controls underscore the crucial importance of proactive mitigation. In the coming days, while uncertainty brews, organizations must take several key steps.
- Identify critical SKUs that may be affected by export controls.
- Evaluate substitutable manufacturers now while supply is still available.
- Discuss allocation flexibility and cost with your suppliers.
- Accept that this is a fluid environment and monitor trusted sources for updates.
The export restrictions against China-assembled Nexperia parts represent more than a supply disruption. Recent policies have been reflective of how geopolitical maneuvering can upend whole product ecosystems overnight. While some firms may treat it as a short-term crunch, for many, this is a structural inflection point in semiconductor supply chain risk.
As a global organization with distribution hubs in Hungary, Singapore, and the United States, Sourceability knows how complex the semiconductor supply chain has become. Throw in geopolitical tensions, and the worldwide supply chain becomes more prone to disruption as administrations change every few years.
To help our partners mitigate the worst of this market disruption and strengthen supply chain resilience, we are using our global inventory to lock in supplies before shortages intensify. Likewise, our partners, Alpha and Omega Semiconductor, Panjit, Yuanjie, MCC, and UTC, offer viable, cost-effective alternatives for Nexperia parts for solutions needed now. Our global team is proactively engaging OEMs and EMS partners with Nexperia exposure to assess demand, propose swaps, and manage expectations.
Since the situation is evolving daily, we are committed to keeping you informed. Let us partner with you to transform reactive stress into a strategic opportunity.
