Lessons in Economic Security: the case of Nexperia

The Nexperia episode, which began in the last quarter of 2025, revealed several shortcomings in how member states, both individually and collectively through the EU, guarantee their economic security. The events that unfolded reveal confusion between critical technologies and supply-chain chokepoints, inadequate preparedness for economic statecraft, and weak coordination within the EU Single Market. The episode demonstrates how national corporate governance disputes can rapidly escalate into European industrial shocks, especially in sectors deeply integrated into the Single Market, such as Nexperia’s ubiquitous legacy chips. The episode also illustrated the US’s continuing extraterritorial influence and how it constrains, if not dictates, the decisions of European countries and businesses. The paper concludes by advocating for a continuation of the European Commission's dual strategy of promoting resilience through capacity building and the careful construction of defensive instruments. Read here the full report.