Embattled Dutch chipmaker Nexperia gets into public spat with Chinese owners — accused of deception and obstruction, suspending wafer shipments

Nexperia factory in Newport.
(Image credit: Getty Images/Huw Fairclough)

Tensions inside Nexperia have sharpened after its parent company, Wingtech Technology, publicly accused the Dutch head office of deception and obstruction, deepening a corporate conflict that has already disrupted wafer flows and raised concerns among major automotive and industrial customers.

The latest confrontation followed a public letter from Nexperia’s headquarters in Nijmegen urging its Chinese subsidiary to resume communications, which it claimed had stalled despite repeated calls, emails, and proposed meetings. Wingtech and the Dongguan-based unit rejected that account in a statement on Thursday, November 27, and said the real issue was the Dutch office’s suspension of wafer shipments and its decision to cut Chinese employees off from internal IT systems.

Wingtech, which acquired Nexperia in 2019, said that it was seeking the restoration of what it described as its lawful control and shareholder rights. The company recently argued that regaining formal authority over Nexperia’s operations is the prerequisite for stabilising global supply chains. It also accused the Dutch management of trying to engineer a “non-Chinese supply chain” structure that would permanently exclude Wingtech from decision-making.

The Dutch headquarters disputed that claim and reiterated that it had made “repeated and multiple attempts” to engage with the Chinese unit. Its letter called for constructive talks to restore operational stability and ensure customers were not caught in the middle. Dutch management also defended its plan to invest $300 million into expanding capacity at Nexperia’s Malaysian site. Nexperia China countered that the investment was intended to shift much of the company’s output overseas and isolate the Dongguan facility, which handles a significant share of the firm’s assembly and test work.

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Luke James
Contributor

Luke James is a freelance writer and journalist.  Although his background is in legal, he has a personal interest in all things tech, especially hardware and microelectronics, and anything regulatory. 

  • pug_s
    It seems the EU is playing political manuerving in order to steal Nexperia from the Chinese.
    Reply
  • heffeque
    pug_s said:
    It seems the EU is playing political manuerving in order to steal Nexperia from the Chinese.
    I guess that one of the main issues was selling it to the Chinese in the first place.
    You'll never see CATL being sold to foreign hands.
    Reply
  • 3en88
    heffeque said:
    I guess that one of the main issues was selling it to the Chinese in the first place.
    You'll never see CATL being sold to foreign hands.
    Once all production is moved out of China it will be nationalized without issues. This is similar to the rare earth situation, they will continue to supply cheap chips and cheap rare earths until they're no longer needed. The Chinese are prone to providing al lot of value in exchange for nothing more than a pat on the head. All of this value however comes from their internal exploitation.
    Reply
  • jonaswox
    3en88 said:
    Once all production is moved out of China it will be nationalized without issues. This is similar to the rare earth situation, they will continue to supply cheap chips and cheap rare earths until they're no longer needed. The Chinese are prone to providing al lot of value in exchange for nothing more than a pat on the head. All of this value however comes from their internal exploitation.
    It is rare to see someone in a comment section aware of this. The icing on the cake is the fact that we, the western population is the enablers. And the fact we talk about "dirty china" while buying every single product that comes off the line and shipping it across the world to bathe in a sea of non essential bs.It can hardly get more ironic with the hottest topic in western politics being "climate".
    Reply
  • pug_s
    heffeque said:
    I guess that one of the main issues was selling it to the Chinese in the first place.
    You'll never see CATL being sold to foreign hands.
    I don't think you understand how Nexperia came to be. The parent company NXP was selling the mature semiconductor to a Chinese company Wingtech in 2017-2019 because NXP was losing money selling it. So Nexperia came to be and Wingtech invested billions to be more efficient and actually made a profit.

    3en88 said:
    Once all production is moved out of China it will be nationalized without issues. This is similar to the rare earth situation, they will continue to supply cheap chips and cheap rare earths until they're no longer needed. The Chinese are prone to providing al lot of value in exchange for nothing more than a pat on the head. All of this value however comes from their internal exploitation.
    I doubt it. If all the chip packaging was made outside of China, Nexperia would not be profitable again. Nexperia Netherlands doesn't have the means to packaging the wafers outside of China.

    The whole spat now is happening now is because the wafer production is done in the EU and the packaging is done in China. Since these wafers are done in mature nodes, these wafers can be produced in China but it takes a few months until it ramps up production. Assuming that the Chinese CEO doesn't take control of Nexperia, give it a few months and this problem will resolve itself when both wafer production and packaging will be done in China.
    Reply
  • Gino188
    Pretty sure this was brought on by pressure from the Americans.

    The Dutch should know better. Just look at Canada. Our government arrested Huawei's Meng Hangzhou because they asked us to, and nothing even came out of it. Got us in a HUGE spat with China. Then now the US turns around and wants to destroy our economy and make Canada part of the US.

    We are a lesson that the Dutch should have learned from.
    Reply