Nexperia Feud Rages as Dutch Company Refutes Chinese Accusations
(Bloomberg) — Nexperia denies its Chinese unit’s claim that it interfered with production by blocking supplies of wafers; Because fighting within the Dutch company continues even after Beijing took steps to restore supplies of vital automotive components.
“Nexperia China needs to have sufficient wafers and finished products to maintain operations for several months,” the Nijmegen, Netherlands-based company said in a statement on Friday. “Nexperia China’s claims to the contrary raise serious doubts about the local government’s stock management practices.”
The statement came after the Chinese subsidiary told employees on Friday that the Dutch government had blocked supplies, failed to allocate funds and failed to provide necessary support for its operations.
China’s Wingtech Technology Co. The chipmaker, owned by the company, supplies power control chips used by automakers from BMW AG to Volkswagen AG. The Dutch government took control of key decisions at Nexperia in September, triggering a response from Beijing that led to parts shortages and disrupted car production in Europe and beyond. Tensions within the company remain high even as the Netherlands and China try to resolve the dispute politically.
The Dutch government intervened amid signals that Wingtech founder Zhang Xuezheng, who is also CEO of Nexperia, was divesting assets in favor of his other businesses, threatening supplies of vital chips in Europe. Beijing responded by restricting the export of Nexperia products from China.
Wingtech denied these allegations and requested that Zhang be reinstated as CEO after he was suspended by an Amsterdam court in October, following a petition from European management.
Negotiations to resolve the chip shortage have progressed in recent weeks, with Beijing officials facilitating the resumption of some exports from Nexperia’s China facility.
“While we point to this progress, we note that this is a relaxation of export restrictions through exemptions rather than a full restoration of the supply chain,” Nexperia said in a statement on Friday. he said.
Nexperia has manufacturing facilities in Germany and the United Kingdom, many of which send wafers for testing and assembly to facilities in China, Malaysia and the Philippines before returning to Europe. Its factory in Guangdong, China, is one of the largest facilities of its kind in the world.
The Dutch firm said it was working on alternative solutions to reduce supply disruptions, including selling and shipping wafers directly to its customers.
“We are committed to continuing these workarounds for as long as necessary and until a normal supply chain with full turnkey flow is restored,” it said in a statement Friday.
The company also said it is considering increasing capacity at other locations and expects to do so in phases throughout 2026.
China’s Ministry of Commerce on Friday expressed disappointment at Dutch Economic Affairs Minister Vincent Karremans’ recent comments on the Nexperia case, calling them misleading and reckless ahead of planned talks in Beijing, in a sign that the political solution remains worrisome.
Beijing’s criticism was a response to the Dutch minister saying in an interview with the Guardian on Thursday that he would “do the same thing again” to assert control over the Chinese-owned chip maker.
“China is extremely disappointed and absolutely dissatisfied with such misleading, distorted and deliberate statements,” a Chinese commerce ministry spokesman said on Friday, adding that the Dutch government’s seizure of Nexperia had thrown the once-stable global chip supply chain into chaos.
A delegation from the Netherlands will travel to Beijing early next week to find a “mutually acceptable” solution to the Nexperia issue, the Dutch government said on Thursday.
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