After the Netherlands seized control of Chinese-owned chipmaker Nexperia, tensions have erupted inside the company. Nexperia’s China arm accused headquarters of cutting off salaries and system access — claims the Dutch unit calls “false and misleading,” according to Nikkei Asia.
The clash shows the strain rippling through the company since The Hague’s rare intervention, which placed Nexperia under state oversight and suspended its China-linked leadership.
Nexperia seeks to steady its image amid internal confusion
In a statement to Nikkei Asia, Nexperia’s European headquarters rejected the allegations. The company said messages circulating from individuals in its China operations wrongly claimed that the Dutch government and headquarters had abandoned the Chinese market and that employees were no longer being paid.
Nexperia said it has reported the matter to authorities and reaffirmed its commitment to both its staff and customers in China. The company added that operations remain uninterrupted, even as it navigates government-imposed restrictions under Dutch takeover.
The rebuttal signals an effort to contain unrest and reassure partners, turning a state intervention into a test of governance and control for one of Europe’s most scrutinized chipmakers.
Beijing hits back as Dutch control deepens
China has condemned the Netherlands’ move to tighten control over Nexperia, calling it “discriminatory” and politically driven. At a regular press briefing, Chinese Foreign Ministry spokesperson Lin Jian said Beijing “firmly opposes overstretching the concept of national security” and actions that target Chinese companies.
The criticism came after the Dutch government suspended Wingtech chairman Zhang Xuezheng and barred Nexperia from making major management or structural changes without state approval for a year. Dutch officials described the measure as “exceptional,” saying it was necessary to safeguard critical chipmaking technology on European soil.
Beijing has since introduced new export restrictions on certain Nexperia-made components and subassemblies produced in China, further complicating the company’s operations. Nexperia said it is “actively engaging with Chinese authorities” to secure exemptions and maintain supply commitments to global customers.
Market tremors expose deeper supply-chain risks
Wingtech’s stock has remained volatile since the takeover, reflecting investor anxiety over Europe’s tightening stance on Chinese-linked tech assets. According to analysts, the case underscores how corporate operations are becoming collateral in broader security battles over semiconductor supply chains.
While Nexperia doesn’t make advanced AI processors, its semiconductors underpin the systems that rely on them. The company is one of Europe’s largest producers of power and logic chips, many of which are shipped to China for packaging before returning to global markets.
As demand for computing hardware accelerates, even basic components have become strategic assets, feeding into everything from factory robots to autonomous vehicles. Any disruption could impact Europe’s automotive and electronics sectors.
Dutch officials said they are in talks with Beijing to ease export restrictions, though neither side has shown a breakthrough. For now, Nexperia remains caught between two governments and two competing visions of control.
Cisco’s new AI Readiness Index points to a widening gap in the UK, where only a small share of companies are ready to deploy AI at scale.