The Netherlands decided to take over chipmaker Nexperia in September due to concerns that Nexperia's former chief executive was preparing to break up its European operations and move production to China, four sources familiar with the government...
The Netherlands decided to take over chipmaker Nexperia in September due to concerns that Nexperia's former chief executive was preparing to break up its European operations and move production to China, four sources familiar with the government's thinking said today.
Reuters reported that China and the Netherlands have been locked in a month-long standoff over Nexperia, prompting automakers in Europe, the United States and Japan to warn that chip shortages could cause production problems. Although the chips manufactured by Nexperia are very basic, they are widely used in automotive electronic systems.
Sources in The Hague said that Zhang Xuezheng, the former CEO of Nexperia, had planned to cut 40% of the European workforce and close the R&D facility in Munich. Zhang Xuezheng is also the founder of Wingtech, the Chinese parent company of Nexperia Semiconductor.
They said that before Zhang Xuezheng was suspended by the Dutch court on October 1, he had transferred secrets from the Manchester factory in England, including chip design and machine setting information, to Wingtech's factory in China. The source also said that the physical equipment of Nexperia's Hamburg production plant is also planned to be moved next.
Zhang Xuezheng cannot be contacted for response at present.
The Dutch government took over Nexperia on September 30, citing lapses in corporate governance. On October 4, China’s Ministry of Commerce banned the export of Nexperia products from China. Although Nexperia produces most of its chips in Europe, about 70% are packaged in China before being distributed.
Nexperia’s China division has developed independently and resumed selling products to domestic customers in China. Sources said the Dutch government sees an opportunity to negotiate a solution with China that would return Anshi to a Sino-Dutch coexistence structure.
Further reading: The battle for Nexperia’s dominance raises concerns over the outflow of key semiconductor technologies to China In the battle between China and the Netherlands for control, Nexperia asked Chinese employees to ignore instructions from the Dutch headquarters Refuting rumors about salary suspension and system suspension! Nexperia says business in China is operating as usual and salaries are being paid Sino-Dutch dispute affects automotive chips and may affect U.S. auto production China restricts Nexperia exports, causing automotive supply chain to tremble Europe tightens controls on semiconductor smuggling into China, and the Netherlands rarely imposes controls on Nexperia Semiconductor
