Nexperia dispute a "warning shot for global supply chains," Moody’s says

Investing.com - A dispute between the Netherlands and China over ownership and control of chipmaker Nexperia is not only about governance, it marks a "warning shot for global supply chains," according to Sapna Amlani, Supply Chain Director at financial services company Moody’s Corporation.

The fight has led to a shortage of chips from Nexperia which has dented automotive supply chains around the world, disrupted output and led some customers to furlough staff. The Chinese-owned and Netherlands-based firm’s basic chips are widely used in products ranging from computing to consumer applications.

Dutch Economic Affairs Minister Vincent Karremans assumed control over Nexperia in late September due to worries that Wingtech, Nexperia’s parent, may opt to move the company’s operations out of the Netherlands and into China. The Netherlands argued that such a move could pose a threat to European economic security.

Beijing later responded by blocking exports of Nexperia’s finished chips, which are mostly packaged in China, in early October.

On Sunday, China’s Commerce Ministry said it had granted expemptions on Nexperia chips for civilian applications, easing worries over further pressures on supply shortages at the automotive industry. The ministry added that China "welcomes" the European Union to "continue leveraging its influnce to urge the Netherlands to promptly rectify its erroneous actions."

Some German and Japanese companies said deliveries of Nexperia’s Chinese-made chips have resumed, Reuters reported.

In a statement, Amlani of Moody’s said that the dispute represents more than a "temporary disruption."

"It signals a structural risk: geopolitical decisions can instantly reshape sourcing economics. Even with China easing restrictions, governance breaches and quality concerns persist. Future risks could come from tighter EU controls or retaliatory measures from Beijing," Amlani wrote.

Amlani added that procurement teams should now consider exploring "multi-sourcing strategies" to reduce dependency on specific suppliers, noting that "acting sooner rather than later may help mitigate future disruptions." Embedding ownership and compliance checks when onboarding suppliers may help strength governance, while planning for potential volatilities in cost or supply could account for regulatory changes, Amlani said.

"The bigger picture? Supply chains are moving from efficiency-driven to resilience-driven. Companies that act now -- diversifying, digitizing, and stress-testing their networks -- will be likely better positioned when the next geopolitical fault line emerges," Amlani said.