Nexperia, a Dutch semiconductor manufacturer, has publicly called on its Chinese subsidiary to assist in restoring supply chain operations. In an open letter, the company warned that customers across various industries have reported that “production is facing imminent shutdown.”
Nexperia’s operations in China are actually controlled and directly managed by its parent company, Wingtech Technology. Wingtech responded on Friday (November 28), stating that the issue of control with Nexperia in the Netherlands is significant. They requested the restoration of Wingtech’s shareholder control and legal rights before discussing stabilizing the supply chain.
This open letter marks the latest development in this long-standing dispute. The conflict not only threatens the global automotive supply chain but has also sparked intense debates between the Netherlands and China regarding technology transfer.
In the communication, Nexperia Netherlands stated that despite attempts at direct communication with Nexperia China management through conventional channels such as phone calls, emails, scheduled meetings, and formal letters, they had not received any substantial responses. Hence, they had to issue the open letter to elicit a response.
The letter stated, “We welcome the commitment from the Chinese (Communist) government to assist in the resumption of exports from Nexperia China and its subcontractors to ensure the continuous supply of our products to the global market.”
“However, customers across various industries continue to report imminent shutdowns of their production. This situation cannot persist any longer,” they added. The group called on Nexperia China’s leadership to take immediate measures to restore the supply chain.
Specifically, Nexperia is urging the Chinese entities to immediately restore predictable, established supply processes, including production plans, delivery schedules, and transparent operational governance.
Wingtech Technology, representing Nexperia China, issued a statement on Friday claiming that Nexperia’s headquarters’ open letter contained “numerous misleading and false allegations.”
Wingtech also alleged that they believe Nexperia Netherlands’ true intent is to buy time to construct a supply chain that excludes China and permanently strip Wingtech of its shareholder rights.
The statement further pointed out that the “illegal deprivation of Wingtech’s control and shareholder rights over Nexperia” is the fundamental reason for the current supply chain disruption.
The saga began in September when the Dutch government, citing a Cold War-era law, announced the practical takeover of Nexperia’s management rights. The Dutch government stated that this move was to prevent Wingtech and Nexperia’s CEO, Zhang Xuezheng, from relocating the European operations from the Netherlands to China.
Simultaneously, a Dutch court in October ordered the dismissal of Zhang Xuezheng, the former CEO of Nexperia and founder of Wingtech Technology, on suspicion of mismanagement. These were two separate incidents.
In response, Beijing halted the export of Nexperia finished products on October 4, subsequently partially easing restrictions. Nexperia’s Chinese subsidiary announced that it was no longer under European management’s control.
Currently, Zhang Xuezheng remains suspended, and the voting rights of the Nexperia shares indirectly held by Wingtech are managed by a designated independent administrator.
Wingtech has consistently refused to restore Nexperia China’s supply chain and has demanded that the Dutch government exert pressure on the courts to withdraw related civil suits.
A spokesperson for the Amsterdam Business Court stated that the next step in the legal process will be to hold a formal investigative hearing concerning the mismanagement issue. The date has not been confirmed.
Nexperia produces billions of “foundational chips,” including transistors, diodes, and power management components. These chips are manufactured in Europe, assembled and tested in China, and then exported to customers in Europe and other regions.
These chips have relatively low technological content and prices but are essential for almost all electronic devices. In the automotive sector, these chips are used for connecting batteries and motors, controlling car lights and sensors, driving braking systems, airbag controllers, entertainment systems, and electric windows.
The supply chain issues surrounding Nexperia have raised concerns among global automakers as they face chip shortages. Several companies, including Nissan from Japan and German automotive supplier Bosch, have issued warnings of impending supply shortages.
A spokesperson of the German Association of the Automotive Industry (VDA), representing hundreds of automakers like Volkswagen, Mercedes-Benz, and BMW, cautioned that supply risks are escalating, “especially in the first quarter of 2026.”
The VDA spokesperson informed CNBC via email, “In recent weeks, the German automotive industry has largely maintained stable production through relentless efforts. However, the disruptions in the Nexperia component supply chain caused by political intervention have not been fundamentally resolved. There is still uncertainty in the supply of components.”
Last week, there appeared to be a turning point in the situation. The Dutch government announced that, following consultations with Beijing authorities, the intervention measures against Nexperia had been temporarily lifted.
Rico Luman, Senior Industry Economist for Transport and Logistics at ING, stated that it is still unclear how long the dispute between Nexperia and the Chinese management will prolong the supply chain issues.
Luman informed CNBC, “The enforced measures regarding the Nexperia subsidiaries in the Netherlands have been lifted, but negotiations concerning the restoration of company structures and relationships with the parent company Wingtech Technology are still ongoing.”
“This not only concerns the supply of finished chips but also the issue of supplying wafers from Europe to the Chinese entities,” Luman added.
In a statement on November 19, Nexperia Netherlands mentioned that the Nexperia China entities currently have sufficient wafer and finished product inventories to sustain operation for several months. They asserted that if shipments are not made on time, full responsibility falls on Nexperia China.
The statement also highlighted that Nexperia China refuses to pay wafer fees to the Dutch headquarters.