The Daily Brief A new front opens in the chip wars
Oct 23, 2025
Delve into the chip wars as tiny components prove crucial for cars and supply chains. Discover Nexperia's rise and the geopolitical tensions surrounding its ownership. Uncover China's massive $800 billion lending spree, targeting developing nations with unique loan terms. With repayments surpassing new loans since 2019, the risks for borrowers loom large. Lastly, explore emerging news about Coca-Cola's IPO plans and Emirates NBD's strategic acquisition in India. Tune in for insights on the shifting economic landscape!
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Cheap Chips Can Cripple Industries
- Nexperia makes cheap, standardized chips that quietly power cars and many electronic systems worldwide.
- Disruptions to such mass-market components can create major global supply shocks despite low per-unit cost.
Nexperia’s European Roots And Chinese Control
- Nexperia began as Philips' semiconductor arm and was spun off into NXP, then its bulk business became Nexperia in 2017.
- It was acquired by Chinese-backed investors and kept European headquarters in Amsterdam.
Automotive Validation Slows Substitution
- Automotive suppliers require long certifications and cascading validations that take months to complete.
- This rigidity makes the auto industry slow to replace suppliers, amplifying supply shocks.