Global semiconductor company Nexperia in Hamburg · Reuters
Fri, November 28, 2025
How is Nexperia's operational split affecting chip production?
Why haven't governments resolved this semiconductor dispute yet?
What are Wingtech's legal arguments in their appeal?
What caused the Dutch government's takeover of Nexperia?
By Toby Sterling
AMSTERDAM (Reuters) -China's Wingtech on Friday said it has appealed decisions stripping it of control of its Nexperia chipmaking subsidiary to the Netherlands' Supreme Court.
The dispute over Nexperia, which has contributed to shortages of chips widely used in car electrical systems, began on September 30 when the Dutch government moved to seize control of the company, citing concerns it was moving intellectual property and operations to China.
A day later, the Amsterdam Enterprise Court suspended Nexperia's former CEO Xuezheng Zhang and placed the company's shares under the control of a Dutch lawyer.
The emergency ruling followed a lawsuit by European members of Nexperia's management alleging mismanagement.
Wingtech's appeal, filed on November 26, argued that the October 1 decisions - made in a single day - were not proper due to Dutch state involvement and because judges ruled "ex parte" - meaning without hearing arguments from Wingtech.
Wingtech's appeal was made to the Supreme Court because the Amsterdam Enterprise Court is an appeals court. The high court is not expected to rule this year.
Separately, Wingtech has appealed the Dutch state's intervention, which was later suspended following talks with Beijing.
Although the U.S., Chinese and Dutch governments have stepped back from the dispute, the struggle for control of Nexperia continues to disrupt production and the auto industry says shortages of its chips still threaten output.
Nexperia makes most of its wafers in Europe, and previously shipped most to China for packaging and distribution. Its European headquarters has halted shipments to China, citing nonpayment, while the Chinese arm is operating independently.
(Reporting by Toby Sterling, Editing by Louise Heavens)
EU seeks diplomatic solution with Nexperia, EU tech chief says amid supply squeeze
How is Nexperia's operational split affecting chip production?
Why haven't governments resolved this semiconductor dispute yet?
What are Wingtech's legal arguments in their appeal?
What caused the Dutch government's takeover of Nexperia?
By Toby Sterling
AMSTERDAM (Reuters) -China's Wingtech on Friday said it has appealed decisions stripping it of control of its Nexperia chipmaking subsidiary to the Netherlands' Supreme Court.
The dispute over Nexperia, which has contributed to shortages of chips widely used in car electrical systems, began on September 30 when the Dutch government moved to seize control of the company, citing concerns it was moving intellectual property and operations to China.
A day later, the Amsterdam Enterprise Court suspended Nexperia's former CEO Xuezheng Zhang and placed the company's shares under the control of a Dutch lawyer.
The emergency ruling followed a lawsuit by European members of Nexperia's management alleging mismanagement.
Wingtech's appeal, filed on November 26, argued that the October 1 decisions - made in a single day - were not proper due to Dutch state involvement and because judges ruled "ex parte" - meaning without hearing arguments from Wingtech.
Wingtech's appeal was made to the Supreme Court because the Amsterdam Enterprise Court is an appeals court. The high court is not expected to rule this year.
Separately, Wingtech has appealed the Dutch state's intervention, which was later suspended following talks with Beijing.
Although the U.S., Chinese and Dutch governments have stepped back from the dispute, the struggle for control of Nexperia continues to disrupt production and the auto industry says shortages of its chips still threaten output.
Nexperia makes most of its wafers in Europe, and previously shipped most to China for packaging and distribution. Its European headquarters has halted shipments to China, citing nonpayment, while the Chinese arm is operating independently.
(Reporting by Toby Sterling, Editing by Louise Heavens)
EU seeks diplomatic solution with Nexperia, EU tech chief says amid supply squeeze
By Foo Yun Chee and Inti Landauro
BRUSSELS (Reuters) -The European Union is determined to find a diplomatic solution with Dutch chipmaker Nexperia amid concerns about a supply squeeze, EU tech chief Henna Virkkunen said on Friday after a virtual meeting with the Chinese-owned company.
"An important meeting this morning with @TeamNexperia, where I reaffirmed our determination to work towards a diplomatic breakthrough. We discussed potential short- and medium-term measures to strengthen the resilience of our supply chain," she said on X.
Virkkunen said Nexperia has been invited to the Chips Act Task Force, which is collecting information on the potential economic impacts of the supply crunch.
Nexperia, owned by Chinese company Wingtech, has been in the spotlight after the Dutch government took control of it earlier this month.
The move prompted Beijing to block Nexperia products from leaving China, sparking concerns among automakers worldwide.
Nexperia subsequently suspended supplies of wafers to its Chinese assembly plant, according to a letter addressed to its customers seen by Reuters.
Virkkunen said the issue underscored the importance of investing in a secure supply chain, stockpiling and diversifying supplies.
(Reporting by Foo Yun Chee and Inti Landauro; Editing by Kirsten Donovan)
'Show of goodwill': Netherlands suspends Cold War-era act tied to Nexperia crisis
South China Morning Post
November 19, 2025 5 min read
The Dutch government has suspended its invocation of the Goods Availability Act, a Cold War-era law it used to effectively seize the European operations of Chinese-owned chipmaker Nexperia.
In a statement on Wednesday, the Dutch economy minister said the government had held "constructive meetings with the Chinese authorities" in recent days and he was "positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world".
"We see this as a show of goodwill. We will continue to engage in constructive dialogue with the Chinese authorities in the period ahead," Vincent Karremans said as a delegation from the Netherlands was expected in Beijing for talks.
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The Nexperia crisis erupted in September when Dutch authorities used the act to ring-fence company assets in Europe, preventing them from being relocated to China.
Nexperia produces around 100 billion semiconductors in Europe every year and an estimated 70 per cent of the wafers then go to Dongguan in southern China for testing and packaging, before being shipped to clients as legacy chips.
Within days of the act being invoked, Beijing responded by restricting the shipment of Nexperia products from the company's facility in China.
Tensions escalated further that week when a Dutch court ousted the company's Chinese ownership and placed interim management in charge.
This led to a global shortage of Nexperia's legacy chips - vital to the production of cars across the world - and a diplomatic scramble to resolve the affair.
As stocks dwindled, car companies and parts makers idled production and The Hague came under pressure not only from China but also from around Europe and across the industrial supply chain to take action.
The Dutch government's move on Wednesday will unlock a ban on transferring assets and intellectual property that kicked in when Karremans' ministry used the Goods Availability Act for the first time on September 30. It will not, however, restore Zhang Xuezheng to his former position as CEO of the company, since he was removed by an independent court in Amsterdam.
A spokesman for parent company Wingtech called on the Dutch government to "withdraw from a court case alleging mismanagement at the firm", Reuters reported on Wednesday.
Documents disclosed by that court painted a dramatic picture of a years-long geopolitical tussle over Nexperia's ownership, with the United States pressuring the Dutch government to remove the Chinese management.
Nexperia was bought in 2019 by Wingtech, which was added to Washington's entity list in late 2024. If not action was taken, the US warned that it would add Nexperia to the blacklist.
Karremans' order in September to invoke the act was issued on the same day that the US expanded the entity list to include Nexperia's operations in Malaysia and the Philippines. Its European arm was given a stay of execution until late November. But after the China-US summit in Busan on October 30, the expansion of the entity list was paused for a year.
Nonetheless, the dispute has simmered ever since.
In an interview with the Guardian last week, Karremans said he had no regrets over the act's invocation.
He added that he would do the same thing again if he had to, prompting yet further outrage from China's Ministry of Commerce.
November 19, 2025 5 min read
The Dutch government has suspended its invocation of the Goods Availability Act, a Cold War-era law it used to effectively seize the European operations of Chinese-owned chipmaker Nexperia.
In a statement on Wednesday, the Dutch economy minister said the government had held "constructive meetings with the Chinese authorities" in recent days and he was "positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world".
"We see this as a show of goodwill. We will continue to engage in constructive dialogue with the Chinese authorities in the period ahead," Vincent Karremans said as a delegation from the Netherlands was expected in Beijing for talks.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
The Nexperia crisis erupted in September when Dutch authorities used the act to ring-fence company assets in Europe, preventing them from being relocated to China.
Nexperia produces around 100 billion semiconductors in Europe every year and an estimated 70 per cent of the wafers then go to Dongguan in southern China for testing and packaging, before being shipped to clients as legacy chips.
Within days of the act being invoked, Beijing responded by restricting the shipment of Nexperia products from the company's facility in China.
Tensions escalated further that week when a Dutch court ousted the company's Chinese ownership and placed interim management in charge.
This led to a global shortage of Nexperia's legacy chips - vital to the production of cars across the world - and a diplomatic scramble to resolve the affair.
As stocks dwindled, car companies and parts makers idled production and The Hague came under pressure not only from China but also from around Europe and across the industrial supply chain to take action.
The Dutch government's move on Wednesday will unlock a ban on transferring assets and intellectual property that kicked in when Karremans' ministry used the Goods Availability Act for the first time on September 30. It will not, however, restore Zhang Xuezheng to his former position as CEO of the company, since he was removed by an independent court in Amsterdam.
A spokesman for parent company Wingtech called on the Dutch government to "withdraw from a court case alleging mismanagement at the firm", Reuters reported on Wednesday.
Documents disclosed by that court painted a dramatic picture of a years-long geopolitical tussle over Nexperia's ownership, with the United States pressuring the Dutch government to remove the Chinese management.
Nexperia was bought in 2019 by Wingtech, which was added to Washington's entity list in late 2024. If not action was taken, the US warned that it would add Nexperia to the blacklist.
Karremans' order in September to invoke the act was issued on the same day that the US expanded the entity list to include Nexperia's operations in Malaysia and the Philippines. Its European arm was given a stay of execution until late November. But after the China-US summit in Busan on October 30, the expansion of the entity list was paused for a year.
Nonetheless, the dispute has simmered ever since.
In an interview with the Guardian last week, Karremans said he had no regrets over the act's invocation.
He added that he would do the same thing again if he had to, prompting yet further outrage from China's Ministry of Commerce.
Nexperia has operations in Europe and China. Photo: Reuters alt=Nexperia has operations in Europe and China. Photo: Reuters>
In the meantime, the Chinese and Dutch arms of the company remain at war, raising question marks over Nexperia's future viability.
The two sides of the business released furious statements last Friday, each accusing the other of stoking the crisis and corporate malpractice. Nexperia Europe is offering to ship wafers directly to its clients, bypassing Nexperia China, and accuses Dongguan of refusing to pay for wafers already shipped.
Nexperia China, meanwhile, slammed management in Nijmegen, the Netherlands, for "maliciously sabotaging Nexperia China's production and operations" by suspending wafer supplies, casting doubt on the quality of its products and failing to provide agreed-upon funding and support.
Nonetheless, car companies said this week that the chips were beginning to flow again.
On Tuesday, Honda Motor said it would gradually resume normal operations at its North American vehicle assembly plants from next week, suggesting that the production disruptions were subsiding.
EU sources say they are satisfied that the worst-case scenario has been averted, but still do not know how the company's future will be resolved.
The interconnectedness of the Chinese and European arms is seen as a major barrier to economic security, given the complete reliance of Europe's car industry on Nexperia chips.
With Beijing also restricting exports of rare earth minerals this year, discussions on how to reduce the EU's dependencies have been turbocharged. The bloc plans to launch a new law targeting critical minerals before the end of the year.
On Wednesday, its industry chief told the Financial Times that the EU would create a central body to coordinate the purchasing and stockpiling of critical minerals to stop the US buying up global supplies from "under our noses".
In Europe, the fear is that it could be left behind in a global rush to diversify away from Chinese supplies.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.
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