Global Chipmaker Showdown: Nexperia’s Dutch Unit Moves to Permanently Strip Chinese Parent’s Control
The corporate world is watching a dramatic tug-of-war unfold at the heart of the global semiconductor supply chain. Netherlands-based chipmaker Nexperia is locked in an escalating conflict with its Chinese parent company, Wingtech Technology, with the Dutch unit reportedly seeking to permanently sever its corporate ties.
Wingtech, the Shanghai-listed technology giant, has openly accused its European subsidiary of what it calls a “conspiracy.” The parent company claims Nexperia’s Dutch entity is actively working to create a non-Chinese supply chain and permanently strip Wingtech of its control. This explosive accusation follows an open letter from Nexperia’s Dutch management, which claimed its repeated attempts to reestablish a working dialogue with its Chinese counterparts have been completely ignored.
The Roots of the Standoff
This unprecedented internal feud has its roots in a high-stakes government intervention two months ago. The Dutch government took the dramatic step of seizing control of Nexperia, citing national economic security and “serious governance shortcomings” at the firm. The action was taken using the Goods Availability Act, a measure designed to safeguard the supply of essential goods.
Immediately following the government’s move, an Amsterdam-based court delivered another blow to Wingtech by stripping it of control over the chipmaker. The court sided with European executives who had sued Wingtech and moved to suspend the Chinese CEO and place nearly all of Wingtech’s shares under the supervision of an independent third party.
A Halt in Production
The corporate battle has quickly spilled over into the physical world, creating a crisis for global manufacturing. Nexperia produces billions of ubiquitous chips essential for the automotive industry and consumer electronics, and its supply chain is intricately linked between Europe and China. Wafers are typically manufactured in Hamburg, Germany, and then shipped to Dongguan, China, for final packaging and distribution.
With the relationship shattered, the supply chain has broken down. Beijing responded to the initial Dutch government seizure by halting, though later partially relaxing, exports of Nexperia’s finished products. The Dutch unit’s open letter makes a desperate plea to its Chinese units to restore the flow of chips, warning that major customers, especially automakers, are now facing “imminent production stoppages.”
Control Remains in Limbo
While the Dutch government did suspend its direct intervention last week following high-level discussions in Beijing, Wingtech’s troubles are far from over. The initial, crucial Amsterdam court ruling—which stripped the Chinese parent of its control—remains firmly in effect. This means Wingtech has not regained its shareholder rights or operational control despite the government’s partial step back.
As the legal and corporate standoff intensifies, Wingtech is appealing the government’s original intervention and urging Nexperia’s Dutch unit to present a “constructive, sincere solution.” However, with the Dutch side pushing for a permanent separation and an independent management structure still in place, the future of the semiconductor giant as a single, cohesive entity looks increasingly uncertain. Global commerce bodies, including both the European Union and China, are now pushing for a company-led resolution to prevent further devastating disruptions to the worldwide technology supply chain.