Dutch chipmaker Nexperia is in the midst of a geopolitical storm. The Dutch government felt it necessary to step in at the end of September by taking control of Nexperia, worried that the company’s chip knowledge would leak to Chinese parent company Wingtech. Beijing responded immediately with export restrictions, which severely affected the production chain. Although 70 percent of Nexperia’s chips are made in Europe, they are packaged and distributed in China. The crisis has had a major impact on the European automotive industry in particular, which is heavily dependent on Nexperia’s components. In this Techzine live blog, you can follow all the developments in this saga.
November 10 – China confirms that exceptions have been made to the export ban on chips from chip manufacturer Nexperia. The Chinese Ministry of Commerce confirms that these exceptions have been made, after China announced last Saturday that it would look into exceptions to the export ban. Some companies were able to obtain an exemption for “eligible exports.” This was reported by the Dutch public news agency NOS.
On Thursday, German company Aumovio, which manufactures parts for the automotive industry, was the first supplier to announce that it had been granted an exemption from the export ban. European Commissioner for Trade Šefčovič spoke this week of “welcome progress” in the negotiations between China and the Netherlands. The Chinese export ban had major consequences, as Nexperia’s products are needed in virtually every electrical device. Last week, Sigrid de Vries of the European industry association ACEA said that some car manufacturers only had enough chips to last a few days. It is still unclear when the chips will actually be delivered.
November 7 – The Dutch government is prepared to suspend its control over chipmaker Nexperia if China resumes chip exports, according to Bloomberg, citing sources. Shares of parent company Wingtech rose nearly 10 percent on the Shanghai Stock Exchange after news of possible solutions. Volkswagen shares also climbed 1.3 percent in Frankfurt.
In a statement, Minister Vincent Karremans emphasizes the constructive nature of talks with Chinese authorities. “Given the constructive nature of our talks with the Chinese authorities, the Netherlands is confident that the supply of chips from China to Europe and the rest of the world will reach Nexperia’s customers in the coming days.” According to sources, the Netherlands can revoke the ministerial order that gave the government control powers if China resumes exports of essential components. Verification of resumed deliveries and resolution of financial issues between Nexperia and its Chinese operations are conditions for this.
Read the full article: Government prepared to suspend control over Nexperia
November 6 – Chipmaker Nexperia warns customers that products from China after October 13 may not be authentic or meet quality requirements. The Dutch manufacturer is facing a crisis following government measures and Chinese export restrictions. The measures follow revelations about possible chip knowledge leaks to China. A Dutch court removed CEO Zhang Xuezheng from his position.
Nexperia confirms that factories outside China will continue to operate normally. An American deal offers some breathing room: Nexperia reports that the company will not be subject to US export restrictions for one year. China has also agreed to consider export opportunities on a case-by-case basis. The crisis mainly affects car manufacturers. European producers are expressing serious concerns about a possible chip shortage. Volkswagen has already acquired alternative suppliers to keep its production lines running.
Read more: Crisis at Nexperia: chip quality cannot be guaranteed
November 4 – The Chinese Ministry of Commerce accuses the Netherlands of not cooperating constructively in finding a solution to the conflict surrounding chip manufacturer Nexperia. Beijing warns that further disruptions to the supply chain are inevitable. The Chinese authorities claim that they are acting responsibly by granting exceptions to the export restrictions. However, the Netherlands is said to be making no comparable efforts.
“The Dutch side persists in its unilateral course without taking concrete action to resolve the issue,” the Chinese Ministry of Commerce said in a statement. The White House announced last week that China would take “appropriate measures” to resume trade from Nexperia’s Chinese facilities. EU Trade Commissioner Maroš Šefčovič reported “progress” in the talks on Monday, without giving details. China calls on the Netherlands to take into account bilateral relations and the broader trade relationship between China and the EU in seeking a solution.
Furthermore: China calls the Netherlands “unconstructive” in Nexperia conflict
November 3 – The Chinese government has partially lifted export restrictions on the Chinese part of Nexperia, allowing chips to be shipped worldwide again. In addition, Nexperia China says it still has sufficient stock of wafers to produce chips until the end of the year. According to the NOS, the lifting of the export ban is the result of talks between China and the United States.
The Chinese branch of the company calls the restriction on the export of wafers from the Netherlands “extremely irresponsible.” The Chinese and Dutch branches of the company have been operating alongside each other for weeks now, rather than with each other. Several parties around the world are looking for solutions. The Netherlands, China, and the United States, among others, are engaged in all kinds of talks to restore calm.
October 31 – Nexperia Netherlands has completely halted the export of wafers to the manufacturer’s Chinese assembly plant. This could have major consequences for the automotive industry, among others, which is largely dependent on the manufacturer. The letter is dated Wednesday, October 29, and is signed by Stefan Tilger, interim CEO of Nexperia. The export ban on wafers was imposed on October 26 and was “a direct result of the fact that local management recently failed to comply with the agreed contractual payment terms.”
Volkswagen, among others, uses Nexperia chips, around 2,000 per vehicle. The company has announced that it has enough Nexperia chips in stock to continue production as normal until the end of next week. The manufacturer had previously said it was in talks with a supplier of alternative chips, but whether and when that deal will be finalized is still unknown.
Full article: Nexperia Netherlands stops supplying wafers to China
October 28 – According to sources, the Dutch government had to intervene at Nexperia because the company’s CEO was in the process of emptying the company. He is also accused of stealing British trade secrets, according to NRC. Zhang Xuezheng wanted to move wafer production to China and discontinue it in Europe. The CEO of Wingtech also stole information about the production of MOSFETs from a factory in the United Kingdom. This information was passed on to another company owned by the CEO in China.
He was also about to close a research center of the company in Munich and finally wanted to lay off 40 percent of the European staff. The CEO, also known as Wing, is said to have taken these actions because Wingtech was blacklisted by the US government in December 2024. As a result, it was no longer possible for the company to trade with that country.
Read more: Nexperia takes action after CEO steals trade secrets
October 23 – The Chinese subsidiary of chipmaker Nexperia has resumed deliveries to local distributors, but with significant changes: sales are now only permitted for the domestic Chinese market and all transactions must be settled in yuan. This is according to Reuters, based on sources. Distributors are also required to have their own customers pay in yuan.
This strategy appears to be aimed at making Chinese operations more independent from the Dutch parent company. The sources indicate that deliveries were initially halted completely after the Chinese export ban before this new approach was introduced. Whereas transactions were previously conducted exclusively in foreign currencies such as US dollars, all sales must now be made in Chinese yuan.
Read also: Nexperia China resumes sales to domestic distributors
October 20 – The battle between Nexperia Netherlands and its divisions in China is not over yet. According to various Chinese sources, the company’s branch there has blocked access to work accounts for employees. These individuals will also no longer receive a salary until further notice. The Chinese division is said to have sent a letter stating: “We are deeply surprised and disappointed […] European management has abandoned the Chinese market.”
However, according to Nexperia Netherlands, this is not true. Employees in China still have access to the company’s platforms and are receiving their salaries as usual. In addition, sources mention that Wingtech has also sent letters to employees stating that they should only follow orders from the Chinese branch of the company and that orders from the Netherlands should be ignored. The Dutch Ministry of Economic Affairs said in a statement: “We are in talks with the Chinese authorities and other relevant European governments and companies to resolve this issue.”
October 15 – The Dutch government’s intervention at Nexperia is big news both at home and abroad. Nexperia CEO Zhang Xuezheng has been removed from his position by the Amsterdam Enterprise Chamber, and the Goods Availability Act has been used for the first time in the Netherlands. Owner Wingtech has already announced that it will appeal the sanctions imposed.
Zhang is suspected of a conflict of interest involving other companies. In 2020, he founded the company WingSkySemi (WSS), and two years ago, Nexperia and WSS signed a foundry agreement to produce silicon wafers. According to court documents, the CEO pushed for orders from WSS worth $200 million, while Nexperia needed wafers worth $70 to $80 million. Nexperia had been in talks with the then Ministry of Economic Affairs and Climate Policy since 2023 about the negative perception of Nexperia and its Chinese owner. Wingtech has been on the US Entity List since December 2024.
October 14 – Tensions between the Netherlands and China continue to rise following the Ministry of Economic Affairs’ decision to intervene at chipmaker Nexperia. The Chinese government calls the move discriminatory. The country warns that the Netherlands should not underestimate China’s determination. The Dutch cabinet took partial control of Nexperia out of concerns about national and European economic security.
China responded almost immediately by imposing an export ban on Nexperia. Letters to customers show that the measure has been in force since October 4 and applies to products from the factory in the southern province of Guangdong. The export ban is causing great unrest among European customers, especially in the automotive and electronics sectors. The Chinese government claims that the Netherlands is stretching the concept of national security to exclude Chinese companies. Chinese state media is singing the same tune. The Global Times newspaper emphasized that the Netherlands should not underestimate China’s strength and perseverance.
Furthermore: China furious after Dutch intervention at Nexperia
October 13 – For one year, Nexperia may only make decisive decisions about its own business operations with the permission of the Netherlands. The Ministry of Economic Affairs is doing this to prevent Nexperia’s expertise in the field of chips from remaining out of Chinese hands. Dutch chip manufacturer Nexperia will not be allowed to simply relocate business units, appoint executives, or make critical decisions about its own business operations in the coming year.
The Amsterdam Enterprise Chamber removed Nexperia CEO Zhang Xuezheng from his position following a request from three Nexperia directors on October 1. Nexperia received the letter from the Ministry of Economic Affairs on September 30, one day before the US imposed stricter export restrictions on Chinese companies. According to sources familiar with the matter, there were signs that Nexperia was planning to leak chip knowledge to China. The measure is being applied under the Goods Availability Act, a reserve instrument for extraordinary circumstances such as war or acute national emergencies.
Read more: Government restricts Nexperia to keep chip knowledge out of China