Nexperia Headquarters Rachets Up Feud With China Unit With Salvo of Accusations

Nexperia, a major global semiconductor company headquartered in the Netherlands, is currently experiencing significant internal and international turmoil due to a dispute between its Dutch headquarters and its China unit. The crisis has fragmented the company, with each side blaming the other for disruptions in wafer shipments to customers [para. 1].

According to a recent statement from Nexperia Netherlands, it believes the Chinese unit has sufficient stockpiles of wafers and finished products, implying that any reported shortages are due to “serious doubts” about the local Chinese management’s inventory practices. The headquarters further assigns full responsibility for any shipment failures to its Chinese entities. Additionally, Nexperia Netherlands has accused its China unit of disobeying instructions, refusing payments for wafers, misusing the company seal, and operating with unauthorized bank accounts [para. 3].

These developments come amid broader U.S.-China trade tensions. Nexperia’s Dutch headquarters had previously stopped direct wafer shipments to Chinese plants and warned customers about possible intellectual property and product quality issues for Chinese shipments after October 13. This standoff has highlighted how corporate governance disputes can be exacerbated by geopolitical rivalries, threatening global semiconductor supply chains [para. 3].

While there was a brief easing when China exempted Nexperia China from certain export restrictions, Nexperia Netherlands described this only as a limited waiver, insufficient for full supply chain restoration. To mitigate the disruption, the Dutch entity has begun shipping wafers directly to customers itself and announced ongoing capacity expansions across its European and Asian facilities, with targets projected through 2026 [para. 3].

At a governance level, the dispute is ongoing and unresolved. The Dutch headquarters noted it has not received any official updates from the Dutch Ministry of Economic Affairs and continues to comply with government directives. As a result, Chinese parent company Wingtech Technology Co. Ltd.’s control over Nexperia is effectively suspended; 99% of Nexperia’s shares are held in a trust, and Wingtech’s founder Zhang Xuezheng has lost his role as Nexperia CEO [para. 3].

The crisis began on September 30 when the Dutch Ministry blocked Wingtech’s control over Nexperia following U.S. export restrictions. Wingtech was placed on the U.S. Entity List on December 2, 2024. In retaliation, China banned certain exports by Nexperia China, escalating into an organizational split, with the Chinese side ignoring Dutch authority and managing domestic production independently [para. 3].

A momentary diplomatic détente occurred on October 30, when the U.S. temporarily suspended its 50% rule, and China announced export exemptions. However, tensions reignited after statements from the Dutch government reiterated the validity and necessity of their intervention and pledged further diplomatic engagement [para. 3].

China has since accused the Netherlands of destabilizing a previously stable semiconductor supply chain, calling the Dutch government’s move to place 99% of Nexperia shares in a trust illegitimate and the root cause of current disruptions. China’s Ministry of Commerce emphasized the fragility of the supply chain despite efforts to resolve the crisis and expressed a conditional willingness to host Dutch officials for further talks