Dutch Government Relinquishes Control over Nexperia Again

The Dutch government suspends the emergency measure by which it took control of chip company Nexperia. The issues between the Dutch and Chinese branches are far from resolved.

Since the end of September, Nexperia has been under control of the Dutch government. The exceptional situation was a result of an emergency intervention by outgoing minister Vincent Karremans (VVD) to protect the Dutch headquarters in Nijmegen. The government feared that the Chinese owner Wingtech wanted to transfer Nexperia’s know-how to China.

The minister formally announces the suspension of the measure via X, calling it a ‘gesture of goodwill’. The government is open to a ‘constructive dialogue’ with the Chinese authorities to resolve the issues. Geopolitical matters keep Nexperia in a grip.

Tensions between the Chinese and Dutch branches of the company have escalated. Nexperia continued its activities independently in China and even refused to supply chips to the Dutch headquarters. The government relinquishes control again in the hope that shipments from China to Europe will resume quickly.

Troubled Relationship

However, the power struggle is not yet over. The Chinese branch of Nexperia is not pleased with the suspension of CEO Zhang Xuezhen by the Amsterdam court. This remains a ‘significant obstacle’ to resolving the conflict.

Dissatisfaction is voiced on both sides. The Dutch headquarters publicly addresses the rebellious attitude of the Chinese sister entity, which has long refused to listen to management and also refuses to pay for European wafers.

Delayed Deliveries

Whether chip deliveries will resume quickly remains to be seen. European car manufacturers hope so. Nexperia does not produce high-tech chips like TSMC, but their technology is important for the automotive industry. The industry sounded the alarm last week over looming shortages.

Nexperia calms the situation, stating that there is still enough stock in the Chinese factories to meet deliveries for several months. If customers have to wait longer for their chips or do not receive them, it is ‘entirely the responsibility of Nexperia China’, says the company management from Nijmegen. The gap between the two entities remains deep.