Tag Archives: reshoring

How Does it Feel to Beg China? Netherlands Knows

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Dutch chipmaker Nexperia has publicly called on its China unit to help restore supply chain operations, warning in an open letter published on its website  on November 28, 2025 that customers across industries are reporting “imminent production outages.” Nexperia’s Dutch unit said that is open letter followed “repeated attempts to establish direct communication through conventional channels” but did not have “any meaningful response.” The letter marks the latest twist in a long-running saga that has threatened global automotive supply chains and stoked a bitter battle between Amsterdam and Beijing over technology transfer.

In a statement, Wingtech Technology, Nexperia’s Chinese parent stated that Nexperia’s true intent is to buy time ” to construct a ‘de-China-ized’ supply chain and permanently strip Wingtech of its shareholder rights.”

The situation began in September 2025, when the Dutch government invoked a Cold War-era law to effectively take control of Nexperia. The highly unusual move was reportedly made after the U.S. raised security concerns.

Beijing responded by moving to block its products from leaving China, which, in turn, raised the alarm among global automakers as they faced shortages of the chipmaker’s components.

In an apparent reprieve on November 19, 2025, however, the Dutch government said it had suspended its state intervention at Nexperia following talks with Chinese authorities…But while the measures to seize the Dutch Nexperia subsidiary have been lifted, the restoration of the corporate structure and relation with parent company Wingtech has yet to be accomplished.

Excerpt from Sam Meredith, What’s going on at Nexperia? China’s Wingtech escalates war of words with Dutch chipmaker, CNBC, Nov. 28, 2028

Under Zero Trust: the U.S. Chip Resurgence

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The Defense Advanced Research Projects Agency launched its Electronic Resurgence Initiative (ERI)  to help reboot a domestic chip industry that has been moving steadily offshore for decades…. Program officials and chip industry executives foresee the emergence of a “5th generation of computing” based on current cloud infrastructure while combining AI, the Internet of Things (IoT) and 5G wireless networks to deliver big data.

“The U.S. microelectronics industry is at an inflection point,” Ellen Lord, undersecretary of defense for acquisition and sustainment, told the virtual ERI summit. After decades of offshoring of chip fabrication, packaging and testing capabilities, “How do we reverse this trend?”  The Defense Department is expanding its technology base efforts by implementing a “step-by-step process for reconstituting the microelectronics supply chain,” focusing on various segments of the semiconductor ecosystem, including memory devices, logic, ICs and advanced packaging along with testing and assembly.

“While DoD does not drive the electronics market,” constituting only about 1 percent of demand, “we can drive significant R&D,” ERI is advancing public-private partnerships that provide a framework for commercial innovation. The result would be “pathfinder projects” geared toward a renewal of U.S. chip manufacturing. As trade frictions with China grow, ERI is placing greater focus on ensuring the pedigree of U.S. electronics supply chain. “We need to find a path to domestic sources,” said Lord.

While nurturing government-industry partnerships as part of an emerging next-generation U.S. industrial policy, this year’s DARPA summit also emphasized chip standards and processes for securing fabs, foundry services, devices and foundational microelectronics. In that vein, U.S. officials stressed new chips metrics like “quantifiable assurance” to secure dual-use devices that could end up in weapons or an IoT device.

“Our interests to protect both the confidentiality and the integrity of our supply chain are aligned with commercial interests, and we will continue to work across government and industry to develop and implement our quantitative assurance strategy based on zero trust,” said Nicole Petta, principal director of DoD’s microelectronics office. The “zero trust” approach assumes no device is safe, and that all microelectronics components must be validated before deployment. The framework marks a philosophical departure from DoD’s “trusted foundry” approach instituted in the 1990s, largely because “perimeter defenses” failed to account for insider threats…

DARPA Chip Efforts Pivots to Securing US Supply Chain, https://www.hpcwire.com, Aug. 24, 2020