Nexperia Denies Former CEO’s Allegations of Chinese Unit’s Independence
Dutch semiconductor manufacturer Nexperia has publicly refuted claims by its ousted CEO that the company’s Chinese division is operating autonomously. The denial comes amid a tumultuous period for the chipmaker, which finds itself caught between international trade restrictions and internal leadership disputes. According to statements obtained by Bloomberg, former CEO Zhang Xuezheng has been accused of spreading “falsehoods” regarding both the operational status of Nexperia’s Chinese unit and alleged non-payment of employee salaries.
Government Intervention and Corporate Control
The Dutch Ministry of Economic Affairs assumed control of Nexperia last week under the nation’s Goods Availability Act, granting authorities the power to block or reverse corporate decisions deemed detrimental to the company’s interests. This dramatic move followed allegations that Nexperia’s leadership had planned to transfer sensitive chip technologies to its Chinese parent company, Wingtech Technologies. The Dutch government’s intervention represents one of the most significant exercises of this emergency economic power in recent years.
International Pressure and Export Controls
The situation escalated into a full-blown geopolitical crisis when China’s Ministry of Commerce issued export controls prohibiting Nexperia’s Chinese subsidiary and its subcontractors from shipping specific components. This development follows a September 2025 ruling by the United States Bureau of Industry and Security that extended export control restrictions to entities at least 50% owned by companies on the US Entity List. As a wholly-owned subsidiary of Wingtech, Nexperia automatically fell under these restrictions, highlighting how global regulatory frameworks are increasingly impacting corporate operations across borders.
Manufacturing Dependencies and Supply Chain Concerns
While Nexperia produces most chips at its plant in Hamburg, Germany, the company relies on Chinese facilities for final packaging and assembly. This dependency has raised alarms among European automakers, who fear potential shortages of automotive semiconductors similar to those experienced during COVID-era supply chain disruptions. The European Automobile Manufacturers’ Association, representing major brands including BMW, Ford, and Renault, has warned that the Dutch government’s actions could significantly impact automotive semiconductor availability.
Broader Context of Semiconductor Geopolitics
The Nexperia situation represents the latest chapter in ongoing tensions surrounding semiconductor technology transfer to China. The United States has previously pressured Dutch authorities to limit such transfers, most notably blocking ASML from selling advanced lithography equipment to Chinese customers. These developments reflect how international governance of critical technologies is becoming increasingly complex and politically charged.
Industry Implications and Future Outlook
Unlike ASML’s cutting-edge equipment, Nexperia primarily manufactures chips using mature nodes, making the intensity of the regulatory response particularly noteworthy. The company’s current predicament demonstrates how even manufacturers of less-advanced semiconductors are becoming entangled in broader geopolitical struggles. As global technological ecosystems continue to evolve, the Nexperia case may establish important precedents for how governments intervene in corporate affairs involving sensitive technologies and international ownership structures.
Industry observers will be closely monitoring how Nexperia navigates the competing demands of its Dutch government overseers, Chinese parent company, and international customers. The resolution of this standoff could have significant implications for global semiconductor supply chains and international technology transfer policies moving forward.
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