Nexperia: China intensifies accusations against Dutch chip manufacturer

The fierce dispute between Dutch chip manufacturer Nexperia and its Chinese parent company Wingtech reached a new peak on Friday. Nexperia supplies a considerable portion of the European automotive sector, over 85 percent of medical device manufacturers, and the entire defense industry with critical components. Wingtech and the Chinese Nexperia unit are now accusing the Dutch business unit of secretly building a supply chain that completely bypasses China.

The accusations came just one day after Nexperia headquarters in the Netherlands stated in an open letter that it had repeatedly tried to contact its Chinese unit without success. Nexperia China is now countering with a demand that the Dutch side must stop its expansion plans abroad. This primarily concerns an investment of 300 million US dollars in a plant in Malaysia. Furthermore, the Chinese unit claims there is an internal company goal to source as much as 90 percent of production outside of China by mid-2026. It also accuses its European colleagues of deleting employee email accounts and cutting off access to IT systems.

The roots of the conflict date back to September, when the Dutch government, citing a Cold War-era law, took control of Nexperia for reasons of national economic security. A court in Amsterdam subsequently revoked Wingtech's ownership rights. Beijing reacted in return on October 4th with an export ban on finished Nexperia chips, which triggered warnings of production stoppages from car manufacturers like Nissan and Bosch.

Further supply chain disruptions feared

Although the export restrictions were eased at the beginning of November and the Dutch government suspended its intervention after diplomatic talks the following week, the original court ruling remains in effect. Wingtech therefore warns that supply shortages could recur at any time as long as the control issue remains unresolved.

Rico Luman, an expert in transport and logistics at the Dutch bank ING, considers it open how long the situation will continue. Although the measures imposed to take over the Dutch Nexperia subsidiary have been lifted, discussions are ongoing to restore the corporate structure and the relationship with the parent company Wingtech. Luman emphasized to CNBC that it also concerns wafer supplies from Europe to the Chinese unit. He draws parallels between the Nexperia situation and China's export controls for rare earth elements.

A spokesperson for the German Association of the Automotive Industry (VDA) warned of increased supply risks, especially for the first quarter of 2026, in view of the ongoing uncertainty. Although the German industry has largely managed to keep production stable in recent weeks through intensive efforts, the supply chain disruptions for Nexperia parts caused by political interventions have not yet been resolved. The availability of components remains uncertain.

(nen)