Chinese Unit Distances Itself Amid Geopolitical Tensions
In a dramatic escalation of the ongoing semiconductor conflict between China and the Netherlands, Nexperia's Chinese operations have formally declared their independence from the Dutch parent company. The Chinese unit issued a directive to employees via its official WeChat channel, explicitly stating that Nexperia China operates as a separate entity governed by Chinese laws and regulations.
The internal communication, which surfaced on October 20, 2025, instructs Chinese employees to ignore communications from Dutch management and disregard instructions originating outside China. 'Salaries, bonuses, and other earnings will continue to be paid by Nexperia China, not by Nexperia Netherlands,' the document states, emphasizing the financial separation between the two entities.
Background of the Corporate Split
Nexperia, originally part of Philips' semiconductor division, became a fully-owned subsidiary of Chinese company Wingtech Technology in 2018 through a $3.6 billion acquisition. The company specializes in manufacturing essential but relatively simple chips used extensively in automotive electronics, consumer appliances, and industrial applications.
The current crisis began on September 30, 2025, when the Dutch government invoked the Goods Availability Act to take control of Nexperia's governance. Dutch authorities cited "serious administrative shortcomings" and concerns about potential technology transfer to China as justification for the intervention. The move resulted in the suspension of Wingtech founder Zhang Xuezheng as executive director.
International Repercussions
The corporate split has triggered immediate concerns across global supply chains, particularly in the automotive industry. The European Automobile Manufacturers' Association (ACEA) has warned that existing chip inventories could be depleted within weeks, potentially forcing production shutdowns at major automotive plants.
'Without these chips, European automotive suppliers cannot produce necessary components, threatening production stoppages across the continent,' an ACEA spokesperson told reporters. The association represents major manufacturers including Volkswagen, BMW, and Renault, all of which rely on Nexperia components for vehicle electronic control units.
In retaliation for the Dutch government's intervention, China's Ministry of Commerce imposed export restrictions on Nexperia chips manufactured in China. This move has created a perfect storm for the global automotive industry, which is still recovering from pandemic-era chip shortages.
Diplomatic Efforts Underway
Demissionary Dutch Minister Micky Karremans is scheduled to meet with his Chinese counterpart later this week to discuss the escalating situation. Both governments have remained tight-lipped about the specific agenda, but sources indicate the talks will focus on finding a resolution that ensures continued chip supply while addressing national security concerns.
The Dutch Ministry of Economic Affairs confirmed awareness of the Chinese unit's declaration but declined to comment on its content. Similarly, Nexperia Netherlands acknowledged the communication but offered no substantive response.
Industry analysts warn that the situation represents a significant escalation in the ongoing technology cold war between China and Western nations. 'This isn't just about corporate governance anymore - it's about fundamental questions of technological sovereignty and supply chain security,' noted semiconductor industry expert Dr. Elena Rodriguez.
As the diplomatic and corporate drama unfolds, automotive manufacturers worldwide are scrambling to secure alternative chip supplies, though industry experts caution that replacing Nexperia's specialized components could take months, potentially causing widespread production disruptions in the interim.