On Sunday, Dutch Minister of Economic Affairs Vincent Karremans stated that Nexperia’s chip supply will also impact the production of automobiles in China.
Karremans emphasized that the Dutch ban on Nexperia was not a hasty decision, as Nexperia’s chip supply would affect nearly all sectors.
According to the Dutch Trade and Industry Act, the Dutch government has required Nexperia and its global entities to undergo adjustments in assets, intellectual property, business, and personnel within a year.
During an interview on the television program “Buitenhof,” Karremans mentioned, “Due to improper management behind our backs by Nexperia’s CEO, not only did it violate agreements previously reached with Nexperia, but it also posed significant risks.”
“If we lose the knowledge, expertise, and production capacity in this field, the Netherlands and the European Union will become extremely vulnerable,” he said, “This would make us completely reliant on companies outside of Europe for chip supply. That is why I took this action, to maintain the company’s unique position in the Dutch and European economies.”
Chinese authorities claim that the Dutch intervention in Nexperia was influenced by pressure from the United States, a claim which Karremans denied.
He clarified that the Dutch government only informed relevant parties and partners of the content of the ban after it was issued on September 30, and the decision was not made under any authorization or in consultation with any country.
Karremans stressed that, in essence, the Netherlands’ action aims to “prevent the former Chinese CEO from transferring Nexperia’s business and intellectual property out of Europe.”
The Dutch government is concerned that Nexperia’s parent company, Wingtech Technology in China, may relocate chip manufacturing to China, leading to Europe losing one of its largest chip manufacturers. Nexperia reported a net profit of $331 million in 2024. While its chips are not cutting-edge technology, they have a huge production volume. Its main production takes place in Manchester and Hamburg, then they are shipped to Dongguan, China for packaging, and finally distributed to the global automotive industry.
When Wingtech acquired Nexperia in 2019, it faced strong opposition from Nexperia’s board of directors. From the outset, Wingtech CEO Zhang Xuezheng made it clear that he aimed to transform Nexperia into a Chinese company. Zhang simultaneously holds the positions of Nexperia’s executive director and non-executive director of Nexperia Semiconductor Holdings.
Karremans stated that he would soon communicate with the Chinese Foreign Minister, as well as other relevant stakeholders such as the European Commission and companies, to discuss how to address the issues with Nexperia.
He mentioned that the Netherlands has been working to resolve the deadlock, and he will personally meet with the Chinese minister responsible for this matter in the coming days.
Karremans added, “This issue is being discussed at the highest levels.”
Automobile manufacturers are concerned that if the deadlock continues, they will face supply shortages until they find alternative solutions.
Karremans cautioned that Chinese automobile manufacturers also rely on Nexperia’s chips.
“There is a mutual dependency between us,” he said.
On Thursday, Karremans confirmed in a letter to the Dutch Parliament that the measures against Nexperia were related to its CEO Zhang Xuezheng’s improper transfer of production capacity, financial resources, and intellectual property to a foreign entity unrelated to Nexperia.
He explained that since the end of 2023, Nexperia had voluntarily engaged in consultations with the Dutch Ministry of Economic Affairs to cooperate with the government to address Nexperia’s economic security issues. Recently, the Dutch government received serious allegations of governance flaws within Nexperia, all related to Zhang Xuezheng.
In September 2025, Nexperia’s Chief Legal Officer Ruben Lichtenberg and its Chief Financial Officer (CFO) and Chief Operating Officer (COO) submitted an emergency application to the Dutch Ministry of Economic Affairs Policy Department, seeking a review of “changes in company control and potential national security risks.”
In the letter, Karremans wrote, “The governance flaws at Nexperia pose a serious threat to the company’s continued development, thereby endangering key technological knowledge and production and development capabilities in the Netherlands and Europe.”
He stated, “This brings a risk of knowledge leakage, resulting in future capacity losses, which are crucial for European industries such as automotive, consumer electronics, and defense,” and mentioned, “These issues have also affected the negotiations between our department and Nexperia Semiconductor.”
Subsequently, the Dutch government issued an administrative order, requiring Nexperia and its global entities not to make any adjustments to assets, intellectual property, business, personnel, etc. within a year. The government stated that this temporary ban would not disrupt the company’s normal production processes or business operations. The ban has a maximum duration of one year.
Meanwhile, the Enterprise Chamber of the Amsterdam Court of Appeal initiated an investigation into Nexperia after receiving lawsuits against its executives. The Court ordered the temporary suspension of Zhang Xuezheng’s CEO position at Nexperia during the investigation and appointed a temporary non-executive director with decisive voting rights. The majority of Nexperia’s shares were transferred to a court-appointed administrator for management.
Karremans pointed out that the court’s decision was based on its independent evaluation, and was unrelated to the government’s instructions to Nexperia under the Dutch Trade and Industry Act.
Court documents also revealed that Zhang Xuezheng did not cooperate with the Dutch government’s efforts to dissociate Nexperia from its Chinese parent company.
For Nexperia, without the Dutch government intervention, the company could face a ban on doing business with American customers and suppliers, and its production base might be forced to relocate to China. However, the intervention could result in retaliation from the Chinese government.
On October 4, the Chinese government issued an export control notice, prohibiting Nexperia China and its subcontractors from exporting specific finished components and sub-assemblies produced in China. This meant severing the connection with Nexperia’s packaging plant in Dongguan.
Karremans previously stated that throughout the entire decision-making process, Zhang Xuezheng had been serving as a conduit for conveying relevant information to the Chinese government. He hopes that through negotiations with the Chinese side, the export ban on Nexperia’s chips will eventually be lifted.