Nexperia denies ousted CEO’s claim China unit’s gone solo • The Register

Nexperia, a Dutch chipmaker that is discovered itself on the heart of a geopolitical disaster, has denied claims by its former CEO that its Chinese language division is now working as an unbiased entity.

The corporate has additionally denied allegations that it has didn’t pay worker salaries, claiming that its not too long ago ousted CEO, Zhang Xuezheng, was actively spreading “falsehoods” after the Dutch Ministry of Financial Affairs took management of the agency final week, in keeping with a press release obtained by Bloomberg.

Based mostly within the Netherlands, the Chinese language-owned chipmaker produces parts for, amongst different issues, digital management items (ECUs) utilized in cars. Final week, Dutch authorities took control of the agency underneath the nation’s Items Availability Act, amid allegations that Nexperia’s management had deliberate to switch delicate chip applied sciences to its Chinese language mum or dad Wingtech Applied sciences.

Beneath the foundations, the Dutch Minister of Financial Affairs was granted the power to dam or reverse company choices deemed dangerous to the corporate’s pursuits. 

The Dutch authorities’s resolution seems to have been influenced by Uncle Sam. “On 29 September 2025, america Bureau of Business and Safety issued a rule extending US export management restrictions to entities at the least 50% owned by a number of entities on the US Entity Record,” Nexperia defined in an earlier statement.

Whereas not talked about particularly, Nexperia, as an entirely owned subsidiary of Wingtech, was topic to the foundations.

The state of affairs has since spiraled right into a geopolitical disaster after China’s Ministry of Commerce issued export controls late final week, prohibiting Nexperia’s Chinese language subsidiary and its subcontractors from transport particular parts and sub-assemblies.

Whereas most chips produced by Nexperia are made at its plant in Hamburg, Germany, closing packaging and meeting are carried out in China.

The state of affairs was additional muddied over the weekend after Nexperia’s Chinese language unit reportedly informed staff in an inner memo to ignore directions from headquarters, including that the corporate can be working as an unbiased Chinese language enterprise shifting ahead.

The debacle has already caught the eye of European automakers, who’re little doubt having flashbacks to COVID-era provide chain disruptions.

In a statement issued by the European Vehicle Producers’ Affiliation, which incorporates the likes of BMW, DAF, Fiat Chrysler, Ford, Honda, Jaguar Land Rover, and Renault, to call a handful, the group warned that the Dutch authorities’s actions relating to Nexperia might lead to a scarcity of automotive semiconductors.

This would not be the primary time that the US had pressured Dutch authorities to restrict the switch of chip applied sciences to China. The US beforehand blocked Dutch semiconductor gear producer ASML from promoting its most superior excessive ultraviolet lithography gear and later expanded the curbs to incorporate older deep ultraviolet (DUV) litho equipment. Each applied sciences are used extensively within the manufacturing of forefront course of applied sciences.

By comparability, most chips produced by Nexperia are manufactured utilizing mature nodes. 

The Register reached out to Nexperia for remark; we’ll let you understand if we hear something again. ®