Published by Global Banking & Finance Review®
Posted on October 31, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleThe EU is working on a diplomatic solution with Nexperia to address supply chain issues affecting automakers, emphasizing the need for secure supply chains.
By Foo Yun Chee and Inti Landauro
BRUSSELS (Reuters) -The European Union is determined to find a diplomatic solution with Dutch chipmaker Nexperia amid concerns about a supply squeeze, EU tech chief Henna Virkkunen said on Friday after a virtual meeting with the Chinese-owned company.
"An important meeting this morning with @TeamNexperia, where I reaffirmed our determination to work towards a diplomatic breakthrough. We discussed potential short- and medium-term measures to strengthen the resilience of our supply chain," she said on X.
Virkkunen said Nexperia has been invited to the Chips Act Task Force, which is collecting information on the potential economic impacts of the supply crunch.
Nexperia, owned by Chinese company Wingtech, has been in the spotlight after the Dutch government took control of it earlier this month.
The move prompted Beijing to block Nexperia products from leaving China, sparking concerns among automakers worldwide.
Nexperia subsequently suspended supplies of wafers to its Chinese assembly plant, according to a letter addressed to its customers seen by Reuters.
Virkkunen said the issue underscored the importance of investing in a secure supply chain, stockpiling and diversifying supplies.
(Reporting by Foo Yun Chee and Inti Landauro; Editing by Kirsten Donovan)
A supply chain is a system of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer.
The Chips Act is legislation aimed at boosting semiconductor manufacturing and research in the European Union to enhance supply chain resilience.
Wafers are thin slices of semiconductor material, such as silicon, used to fabricate integrated circuits and other microdevices.
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