Nexperia, now at the center of a geopolitical and industrial storm, traces its roots to the Netherlands' chip giant NXP Semiconductors. The company began as NXP's discrete and power semiconductor division, specializing in basic chips essential for automobiles and consumer electronics.

In 2018, Nexperia was sold to Chinese smartphone and electronics maker Wingtech Technology for $3.6 billion, marking one of the most notable Chinese acquisitions in Europe's technology sector.

Since then, Nexperia has operated as a major global supplier of fundamental semiconductors used in cars, smartphones, and other electronic devices. Much of its final production takes place in China, but its customer base remains firmly anchored in Europe, especially among major automotive manufacturers that depend on its steady chip supply. Over the years, Nexperia has grown into a key pillar of Europe's industrial ecosystem, linking Chinese manufacturing efficiency with European engineering expertise.

That balance was upended as the US Department of Commerce issued a new export-control rule on Sept 29, extending existing sanctions to subsidiaries that are more than 50 percent owned by companies already on the US Entity List. As a Wingtech subsidiary, Nexperia was affected.

The next day, the Netherlands government took the extraordinary step of seizing control of Nexperia, citing "national-security concerns" and alleged governance flaws that it said might threaten the security of chip supplies to European factories.

On Oct 21, Netherlands Minister of Economic Affairs Vincent Karremans spoke with China's Commerce Minister Wang Wentao to discuss "steps toward a solution". Wang is expected to visit the EU soon, and Nexperia is likely to top the agenda.