On October 12, 2025, the Dutch government executed a forced takeover of the Chinese-invested Nexperia Semiconductor Company, citing national security concerns. This move ignited a firestorm of debate in the international arena. In swift response, the Chinese government implemented countermeasures, with the Ministry of Commerce announcing export controls on Nexperia Semiconductor's operations in China. These controls prohibit the company from exporting certain finished components and sub-assemblies abroad. The policy is primarily aimed at Nexperia Semiconductor's packaging and testing facility in Dongguan, which is responsible for 70% of the company's global final product shipments and serves a clientele that includes globally renowned names such as Apple and Tesla.

In the immediate aftermath, the disruption in supply has compelled these companies to scout for new suppliers. However, given China's dominant 37.05% market share in the global packaging and testing sector, finding alternative solutions is both costly and time-consuming. It is estimated that establishing a new supply chain system could take up to a decade.

This incident underscores a strategic tug-of-war between China and the Netherlands over industrial chain security. The Dutch action has faced criticism for infringing upon the legitimate rights and interests of Chinese enterprises and may be swayed by U.S. policies aimed at curbing China's high-tech sector. China's countermeasures underscore its unwavering stance on issues concerning national sovereignty and industrial chain security. By restricting exports from the Dongguan packaging and testing plant, China sends a clear message to the international community.

The ramifications of this incident extend far beyond, posing a significant threat to the stability of the global semiconductor supply chain and introducing a wave of uncertainty into the international market. Supply chains for European and U.S. clients have been thrown into disarray, disrupting not only production schedules but also potentially driving up prices for end products.