A power struggle over Nexperia, a Chinese-owned Dutch semiconductor maker, is impacting global auto production. The Dutch government has taken control of Nexperia, citing national security concerns. This move highlights vulnerabilities in the technology supply chain, affecting automakers like Honda, which halted production at a Mexican factory. The dispute is part of a broader U.S.-China tech rivalry, with Europe caught in the middle. Recent talks between the Dutch and Chinese governments show signs of resolving the crisis.

Modern automobiles rely on so-called discrete chips made by companies like Nexperia, which, unlike more advanced microprocessors, perform a single function. Leaders at big carmakers spelled out their worries in the latest round of earnings calls, saying that finding a

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