Europe and China’s Feud Over Chips Is Reaching a Breaking Point

An effort by Europe to stand up to China and retain local technology is approaching a breaking point.

In a fight over a critical link in the global supply chain, chipmaker Nexperia BV was wrested away from its Chinese owner by a Dutch court and now one of the leaders in so-called legacy chips is racing to defend its independence. If the Nijmegen-based company is successful, Europe would hold on to valuable semiconductor manufacturing expertise and hand the region a rare victory over China.

By pushing back over Nexperia, Europe aims to “set a precedent for what ‘de-risking’ means,” said Benedetta Girardi, program coordinator at the Hague Centre ...