Krishnamoorthi Seeks Answers from Commerce Secretary on Trump Administration’s Handling of Nexperia Crisis
WASHINGTON – Congressman Raja Krishnamoorthi (IL-08), 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 seeking clarification on the U.S. role in the escalating dispute between the European Union, the Netherlands, and the People’s Republic of China over the semiconductor firm Nexperia.
In his letter, Congressman Krishnamoorthi warned that the Nexperia case “highlights the urgent need for the United States to coordinate closely with its allies on technology and supply chain security,” emphasizing that “this coordination is essential to ensure that U.S. actions strengthen, rather than undermine, shared objectives on semiconductor export controls and the protection of our collective economic and national security interests.”
Citing recent developments in Europe, Krishnamoorthi outlined how “the Dutch government moved to seize control of Nexperia, the PRC-owned, Netherlands-based semiconductor firm that supplies vital components to the global automotive industry,” after finding that its ownership structure would violate a new export control rule. He noted that instead of responding constructively, “the PRC’s Ministry of Commerce responded with a disproportionate act of economic coercion, effectively dividing the company between its Dutch and PRC operations by utilizing sweeping export controls on products shipped from Nexperia’s facilities in the PRC, which assemble roughly 80 percent of the company’s finished chips.”
Krishnamoorthi wrote that this “reckless act placed the stability of the global automotive supply chain at risk, prompting urgent warnings from Japanese and European automakers that, absent a diplomatic solution, production shutdowns could be imminent.” He also stressed that “it remains unclear whether coordination between the U.S. and its allies occurred, and the American people deserve clarity on this point.”
Following the recent Xi–Trump summit in Busan, Krishnamoorthi raised concerns that U.S. actions may have sidelined key partners:
“Neither Executive Vice-President [Henna] Virkkunen nor the European Commission appeared aware of the reported breakthrough, and the Commission declined to indicate whether she had been apprised of the Administration’s discussions with Beijing, underscoring that Brussels has not been kept in the loop on negotiations between the White House and Chinese officials.”
Krishnamoorthi warned that “the lack of transparency and coordination between Washington and Brussels” comes “at a time of growing competition over semiconductor supply and industrial security.” He also cited new statements from Beijing’s Ministry of Commerce that appear to contradict the Trump Administration’s claims of a resolved dispute, saying they “highlight Chinese interference in EU and EU member state decision-making and contrast the Trump Administration readout that the situation was already resolved.”
The Ranking Member asked Secretary Lutnick to clarify:
Whether the Trump Administration’s agreement to freeze the Bureau of Industry and Security’s “50 Percent Rule” was linked to leverage over Nexperia’s China-based operations;
Whether semiconductor shipments referenced in the U.S.-China summit readout originate from Nexperia’s PRC or European facilities and whether allied governments were consulted; and
What steps the Department of Commerce is taking to ensure future semiconductor negotiations are coordinated with U.S. allies.
Krishnamoorthi concluded that “the fate of Nexperia’s Netherlands operations, and the critical technology it stewards, remains uncertain,” warning that if the company’s Chinese operations supplant its Dutch facilities, “the global auto industry could soon be using chips that are wholly-made in the PRC, raising a host of national and economic security concerns.”
The letter is available here.