Netherlands Seizes Chipmaker Nexperia Amid Fears of Chinese Transfer

The Dutch government's decision to take control of chipmaker Nexperia last month was driven by concerns that the former CEO, Zhang Xuezheng, aimed to shift operations to China. Four sources familiar with the situation in The Hague explained that Zhang, also the founder of Nexperia's Chinese parent company Wingtech, was in the process of downsizing European operations, raising alarms of potential intellectual property leaks.

This move has resulted in tensions between China and the Netherlands, with major automakers in Europe, the U.S., and Japan cautioning about potential chip shortages affecting their production lines. Although Nexperia's chips are basic, they are integral to automotive electronics systems. Meanwhile, a Dutch court suspended Zhang, who allegedly transferred sensitive data from the company's UK plant to Wingtech's operation in China.

Authorities in the Netherlands acted swiftly, stepping in to take control of Nexperia on September 30, citing issues in governance. This was followed by China blocking exports of Nexperia's products from China. Discussions are reportedly ongoing, with the Dutch government optimistic about negotiating a resolution that could reestablish Nexperia as a unified Dutch-Chinese operation while safeguarding European jobs and interests.