Nexperia

There was a second example where, um, the Trump administration rolled out some new, uh, export controls late in the summer of 2025.

Uh, in response to that or alongside that, the Dutch government, um, in the Netherlands pulled the CEO out of a, you know, Chinese subsidiary of a semiconductor company and created this huge fight, and what happened was, uh, the Chinese government also banned exports of semiconductors coming out of this company called Nexperia, which nobody had heard of.

Um, but it turns out they make chips, not even fancy chips, but they make chips that are essential in the automotive supply chain.

And what happened was, uh, Honda plants in both Mexico and Canada, Mexico had to shut down production temporarily.

It controls 91% of rare earth processing.

The Nexperia chip dispute in late 2025 disrupted European car plants.

China has also reportedly put 14 European firms, including Rheinmetall, which is upping its presence both in Japan and Taiwan, on an export control list.

And the broader rare earth controls that were suspended last November are due back the 10th of November.

Europe, India, Japan, and other manufacturing economies have found themselves caught in the crossfire.

In early October, the Dutch government took temporary control of a Chinese-owned chipmaker based in the Netherlands called Nexperia, citing governance concerns and national security risks.

The CEO was accused of misappropriating over $200 million of company funds to benefit another company he owned in China, and Dutch officials were concerned that the company's operations and intellectual property were being shifted to China.

Nexperia's chips are widely used across Europe's industrial base, in cars, medical devices, and defense systems.

According to local reports, 49% of European auto companies, 86% of medical device firms, and the entire European mechanical engineering and defense sectors rely on Nexperia's components.

Since the dispute began, the company is reported to have struggled to secure rare earth supplies from China, and the resulting shortages have started to affect production.

China's control over rare earths is just one part of its broader trade strategy.

And they were planning to apply them to China.

Now, this is always a very serious step because, as we've seen in the trade war between the United States and China in 2025, but also in the imbroglio that surrounded the Netherlands acquisition of Nexperia, compulsory acquisition of Nexperia, which was a Chinese-owned company.

European-based chip manufacturing company, China really has significant counter tools that it can apply.

And in both cases, the European Union and the United States had to back down.

The next step will take place in the US Senate.

[page flips] On Thursday, Dutch chipmaker Nexperia announced a partnership with Indian multinational conglomerate Tata Group, with Tata Electronics to manufacture and package computer chips in India.

This continues the split of Nexperia from its Chinese parent Wingtech.

Nexperia would work with Tata at the $11 billion plant Tata is building in Dholera.

The companies will also begin cooperating on testing and assembling chips at Tata's packaging facility at Jaggi Road and other future technology development projects.

Financial terms were not disclosed.