Dutch Media Reports Chief Executive Officer of Nexperia Stealing Secrets from UK Factory and Threatening to Dissolve European Subsidiaries
In a report by Dutch media, Zhang Xuezheng, the CEO of Nexperia, is accused of stealing confidential information from the Nexperia UK factory and threatening to dissolve European subsidiaries, leading to the intervention of the Dutch government.
Last Monday (October 27), Dutch media outlet “NRC” published an investigative report, with multiple sources confirming that Dutch officials believe the Chinese owners of Nexperia are stealing business secrets from the UK factory and planning to split the company, as well as transferring all European production to China. Consequently, the Dutch government invoked a law from 1952 to prevent Europe from losing this chip factory and related technology.
Nexperia, headquartered in Nijmegen, Netherlands, produces low-cost chips used in various electronic products and the automotive industry. The wafers for these chips are manufactured in Manchester, UK, and Hamburg, Germany, before being shipped to Dongguan, China for packaging.
Zhang Xuezheng concurrently serves as the CEO of Nexperia and the CEO of Wingtech Technology, Nexperia’s Chinese parent company, which acquired Nexperia several years ago.
According to the NRC report, Zhang Xuezheng plans to shift all wafer production in Europe to China, outsourcing it to Shanghai-based Wingskysemi, a subsidiary of Wingtech.
Wingskysemi is one of the major projects of the Shanghai government with a total investment exceeding 12 billion RMB, aiming to become the first 12-inch power semiconductor wafer factory in China.
Wingtech previously stated that Wingskysemi will begin mass production of 12-inch wafers in the second half of 2025 (expected in October), focusing on MOSFET products.
NRC reported that in order to execute the transfer of wafer production to China, Zhang Xuezheng illicitly obtained chip production technology from Nexperia’s Manchester factory in the UK. Although this is considered general technology, it contains Nexperia’s trade secrets. Zhang Xuezheng inappropriately disclosed these secrets to a domestic company in China, also owned by Zhang Xuezheng.
After conducting an investigation, Dutch officials concluded that Zhang Xuezheng enriched himself by having Nexperia place large orders with his own chip factory and stealing knowledge.
As a result, the Dutch government enacted the 1952 law to prevent the dissolution of Nexperia, as it was the only way to do so. A recent regulation grants the Minister the power to prevent acquisitions with geopolitical sensitivities, but it cannot be applied to Nexperia’s case as the company was sold to a Chinese company before the regulation was enforced.
Additionally, officials from the Dutch Ministry of Economic Affairs informed NRC that Zhang Xuezheng had informed the employee committee of his plans to dismiss 40% of Nexperia’s European employees and shut down the research center in Munich. Based on these actions, the Dutch Minister of Economic Affairs decided to intervene under pressure.
On September 30, Dutch Minister of Economic Affairs Vincent Karremans invoked the “Goods Supply Act” (1952) to freeze Nexperia’s operations for a year. During this period, Nexperia and its subsidiaries are prohibited from making any adjustments to assets, intellectual property, business, and personnel. The Dutch government also pointed out that Zhang Xuezheng’s actions violated agreements and endangered the economy and national security of the EU.
The intervention by the Dutch government means that Wingtech Technology cannot transfer any components or equipment from Nexperia.
On October 1, a Dutch court made a ruling related to Nexperia. The Court of Appeal ordered the temporary suspension of Zhang Xuezheng’s CEO position during the investigation and placed Nexperia’s shares under independent management. The government stated that these two interventions happening so closely together were purely coincidental.
However, Beijing retaliated against the dual blows by banning the export of chips from Nexperia China, potentially causing production issues for European and American car manufacturers.
Wingtech Technology accused the Netherlands of acting at the behest of the United States. Nevertheless, the Dutch government maintained that the US was not involved in the decision, clarifying that the government’s actions were aimed at Zhang Xuezheng, not China.
According to local media “Financieele Dagblad,” Wingtech Technology is currently requesting the Netherlands to return full control and ownership of Nexperia to its legitimate shareholders in China.
A spokesperson from Wingtech Technology informed the newspaper that only through such measures can the Dutch government “start repairing the damage to its reputation, alleviate international tensions, and safeguard its own and Europe’s economic security.”
NRC reported that Dutch officials are in daily discussions with Chinese officials, exploring possible solutions for Nexperia.
Nexperia China has publicly stated that it operates independently from its headquarters in the Netherlands. However, due to the decrease in wafer shipments from Europe, its current production capacity is only at half.
A Chinese investor familiar with the situation at Wingskysemi publicly stated, “Wingtech Technology had already anticipated the worst: cutting ties with the Dutch Nexperia headquarters. The Dutch side no longer supplies wafers to the Chinese company, which has begun producing wafers through a domestically sourced industrial chain, aiming to eliminate the negative impact caused by the Dutch side’s ‘power grab’ through local packaging and sales.”