EU Reviews Chip Strategy Amid Nexperia Supply Concerns

Henna Virkkunen meets Dutch chipmaker as Europe reassesses semiconductor resilience.

European Union technology chief Henna Virkkunen is scheduled to meet with Dutch chipmaker Nexperia on Friday, following growing concerns over supply disruptions linked to the company. The announcement was made via X, where Virkkunen emphasized the importance of the meeting in shaping the upcoming Chips Act 2.0, expected to launch in early 2026. Earlier in the week, she held virtual discussions with executives from Infineon, STMicroelectronics, NXP, and Acea. These engagements reflect the EU’s increasing focus on semiconductor stability and strategic autonomy.

Nexperia’s Ownership and Operational Challenges

Nexperia, a Netherlands-based manufacturer of essential power control chips, has come under scrutiny after the Dutch government intervened to take control of the company. The move followed reports that its former CEO was shifting production to China, raising alarms about the erosion of European manufacturing capacity. In response, Chinese authorities blocked Nexperia’s products from leaving the country, leading the company to inform automotive clients that it could no longer guarantee deliveries. This development has sparked concern across multiple sectors reliant on low-cost components like transistors and diodes.

These chips, though inexpensive, are critical to the functioning of nearly all electronic devices. In vehicles, they serve roles in battery connections, lighting systems, and braking mechanisms. Supply instability in such foundational components can ripple through entire industries. The situation underscores the vulnerability of Europe’s semiconductor supply chain and the need for coordinated policy responses.

Chips Act and Strategic Reassessment

The EU adopted its original Chips Act in 2023, allocating 43 billion euros to double the bloc’s share of global chip production to twenty percent by 2030. This legislation aimed to reduce dependence on foreign suppliers and strengthen domestic capabilities. A review of the policy is scheduled for next year, with preliminary discussions referring to it as Chips Act 2.0. Virkkunen’s meeting with Nexperia is expected to inform this revision, particularly in light of recent geopolitical and operational disruptions.

Efforts to secure semiconductor supply chains have gained urgency as global tensions affect trade and manufacturing flows. The EU is now evaluating how to balance openness with strategic control in its tech sector. Lessons from the Nexperia case may influence future investment priorities and regulatory frameworks. Policymakers are considering how to safeguard critical infrastructure while maintaining competitiveness.

Industry Implications and Broader Impact

The Nexperia situation highlights the complexity of managing supply chains in a globalized semiconductor market. European carmakers and electronics manufacturers rely heavily on consistent access to basic chips, making even minor disruptions significant. As the EU prepares its next phase of chip policy, stakeholder input from companies like Nexperia will be crucial. The outcome may shape how Europe navigates technological sovereignty in an increasingly fragmented global landscape.