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The crisis surrounding Dutch semiconductor firm Nexperia has become a flashpoint in the global chip war between the U.S., Europe, and China. What began as the Netherlands’ attempt to force Chinese-owned Nexperia to divest for “national security” reasons has spiraled into an industrial and geopolitical confrontation. Beijing viewed the move as a direct economic attack — and its response has shaken Europe’s manufacturing backbone. Nexperia, based in Nijmegen, produces discrete semiconductors and power-management chips — the small, essential components found in virtually every modern device, from cars and smartphones to hospital machines. Once part of Philips, Nexperia was acquired in 2017 by Wingtech Technology, a major Chinese electronics group. Though it doesn’t make high-end AI processors, its parts are indispensable. The Dutch divestment order effectively disrupted supply chains that power the global economy. While Western governments focus on advanced chips, China dominates the basic components that keep industries running. It controls about 43% of the world’s integrated circuit production, over 60% of discrete semiconductors, and more than 70% of passive components like capacitors and resistors, according to TrendForce and IC Insights (2024). That means most electronic hardware — even Western-branded — relies on Chinese or Taiwanese factories. When China slows exports, production in Germany, the UK, and the U.S. halts almost instantly. For context, a 2021 fire at a Renesas chip plant in Japan cut global car output by over 10%; Beijing’s power over supply chains is exponentially greater. After a so-called trade “reset” between Donald Trump and Xi Jinping, China loosened export restrictions only on its own terms — allowing limited shipments of automotive and power chips to Western companies under strict approval rules. Analysts from Bloomberg Intelligence and Nikkei Asia note that Beijing used the gesture to reinforce its leverage: it decides when supply flows or stops. European automakers including Volkswagen, BMW, and Nissan now warn of factory shutdowns amid chip shortages. Bosch has cautioned that Europe’s auto industry could collapse if Chinese suppliers freeze shipments. Even Berlin has begun negotiating directly with Beijing, bypassing Washington — a clear sign of eroding U.S. influence. China’s counterstrategy is simple but devastating: no tariffs, no sanctions — just silence in the supply chain. By delaying approvals or halting exports, it forces the West to turn to Beijing for relief. The result: a new era of industrial dependence, where the global economy runs — or stops — at China’s command. In this video: 00:00 – China Block US Chips 01:36 - Global Chip Problem with Nexperia 03:35 - How China Dominated the Global Chip Market 07:46 - China Loosens Its Grip, But on Its Own Terms 10:21 - Europe’s Factories Are the First Casualties #China #Nexperia #Trump