Krishnamoorthi Presses Commerce Department for Answers on the Unresolved Nexperia Crisis
WASHINGTON — Congressman Raja Krishnamoorthi, Ranking Member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, sent a letter today to Commerce Secretary Howard Lutnick and BIS Under Secretary Jeffrey Kessler urging immediate action as the ongoing Nexperia crisis threatens global automotive production, strains U.S.–EU supply chains, and exposes deep vulnerabilities in legacy semiconductor sourcing. Despite White House claims earlier this month that the dispute had been resolved, Nexperia’s European and PRC operations remain in open conflict, with major automakers preparing for possible production stoppages and governments across Europe and Asia scrambling for alternative chip supplies. Krishnamoorthi’s letter seeks clarity on Commerce’s assessment of the crisis and the administration’s strategy to reduce U.S. and allied reliance on PRC-controlled legacy chip production.
In his letter, Ranking Member Krishnamoorthi writes:
“Subsequent events make clear the Nexperia crisis remains unresolved. No durable settlement has materialized, and the company’s PRC and European operations remain locked in conflict. Hostile statements from the PRC’s Ministry of Commerce show Beijing attempting to shift blame while reserving the right to weaponize Nexperia’s PRC operations at any moment that suits CCP interests.”
He also highlights Nexperia China’s shift toward unvetted PRC wafer suppliers, warning:
“These chips are widely used across the automotive sectors of our closest allies, and any shift to unvetted PRC suppliers would raise significant concerns regarding safety certification, quality control, and the reliability of components embedded in critical vehicle systems.”
Krishnamoorthi notes that the crisis is already rippling across global supply chains:
“Automakers report the situation is ‘devastating for hundreds of industries,’ and caution that conditions remain ‘dynamic and uncertain.’ Taken together, he writes, these warnings ‘expose how vulnerable the U.S. and allies are to Nexperia China and underscore the need to expand trusted supply chains between allies to avoid further CCP leverage over critical components.’”
He concludes:
“We should see the Nexperia crisis for what it is: a wake-up call. The United States and our EU allies cannot afford to be placed in a position where we are dependent on the CCP. Instead, we should be working together to accelerate the expansion of trusted suppliers and stand firmly with Nexperia’s Dutch operations against CCP coercion.”
Ranking Member Krishnamoorthi requested answers to the following questions:
- Given Nexperia China’s shift to PRC-based wafer suppliers, will BIS open formal investigations into Wuxi NCE Power, Hangzhou Silan Microelectronics, Yangjie Technology and especially WingSkySemi to determine whether they pose risks related to ownership, state direction or circumvention of U.S. and allied export controls?
- How is the Department of Commerce responding to warnings from BIS, global automakers, and tier-one suppliers about the long-term structural risks of PRC dominance in the legacy chip market?
- What steps, if any, has the Department of Commerce taken to accelerate domestic and allied alternatives to Nexperia through funding, procurement authorities, and coordination with partners so that U.S. legacy semiconductor firms can reduce dependence on PRC-controlled suppliers?
- Given the widespread use of legacy chips in vehicle safety systems, will you commit to assessing the potential impact of PRC-controlled supply disruptions on automotive safety, reliability and recall risk for the global auto industry?
The letter is available here.
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