Nexperia, a Dutch chipmaker that's found itself at the center of a geopolitical crisis, has denied claims by its former CEO that its Chinese division is now operating as an independent entity.

The company has also denied allegations that it has failed to pay employee salaries, claiming that its recently ousted CEO, Zhang Xuezheng, was actively spreading "falsehoods" after the Dutch Ministry of Economic Affairs took control of the firm last week, according to a statement [1]obtained by Bloomberg.

Based in the Netherlands, the Chinese-owned chipmaker produces components for, among other things, electronic control units (ECUs) used in automobiles. Last week, Dutch authorities [2]took control of the firm under the nation's Goods Availability Act, amid allegations that Nexperia's leadership had planned to transfer sensitive chip technologies to its Chinese parent Wingtech Technologies.

[3]

Under the rules, the Dutch Minister of Economic Affairs was granted the ability to block or reverse corporate decisions deemed harmful to the company's interests.

[4]

[5]

The Dutch government's decision appears to have been influenced by Uncle Sam. "On 29 September 2025, the United States Bureau of Industry and Security issued a rule extending US export control restrictions to entities at least 50% owned by one or more entities on the US Entity List," Nexperia explained in an earlier [6]statement .

While not mentioned specifically, Nexperia, as a wholly owned subsidiary of Wingtech, was subject to the rules.

[7]

The situation has since spiraled into a geopolitical crisis after China's Ministry of Commerce [8]issued export controls late last week, prohibiting Nexperia's Chinese subsidiary and its subcontractors from shipping specific components and sub-assemblies.

While most chips produced by Nexperia are made at its plant in Hamburg, Germany, final packaging and assembly are done in China.

The situation was further muddied over the weekend after Nexperia's Chinese unit reportedly told employees in an internal memo to disregard instructions from headquarters, adding that the company would be operating as an independent Chinese enterprise moving forward.

[9]

The debacle has already caught the attention of European automakers, who are no doubt having flashbacks to COVID-era supply chain disruptions.

In a [10]statement issued by the European Automobile Manufacturers' Association, which includes the likes of BMW, DAF, Fiat Chrysler, Ford, Honda, Jaguar Land Rover, and Renault, to name a handful, the group warned that the Dutch government's actions regarding Nexperia could result in a shortage of automotive semiconductors.

[11]Nvidia still needs Taiwan even as TSMC ramps Blackwell production in Arizona

[12]Carmakers fear chip crunch as Dutch sanctions hit Nexperia

[13]ASML shrugs off China slump with faith in AI-fueled chip demand

[14]Inside the belly of the beast: A technical walk through Intel's 18A production facility at Fab52

This wouldn't be the first time that the US had pressured Dutch authorities to limit the transfer of chip technologies to China. The US previously [15]blocked Dutch semiconductor equipment manufacturer ASML from selling its most advanced extreme ultraviolet lithography equipment and later expanded the curbs to include older deep ultraviolet (DUV) litho kit. Both technologies are used extensively in the production of leading edge process technologies.

By comparison, most chips produced by Nexperia are manufactured using mature nodes.

The Register reached out to Nexperia for comment; we'll let you know if we hear anything back. ®

Get our [16]Tech Resources



[1] https://www.bloomberg.com/news/articles/2025-10-20/nexperia-s-china-unit-says-staff-can-defy-dutch-headquarters?embedded-checkout=true

[2] https://www.theregister.com/2025/10/13/nexperia_special_measures/

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aPaw9SyD4wYQaPNbH3eOdAAAAJI&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aPaw9SyD4wYQaPNbH3eOdAAAAJI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aPaw9SyD4wYQaPNbH3eOdAAAAJI&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[6] https://www.nexperia.com/about/news-events/press-releases/update-on-company-developments

[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aPaw9SyD4wYQaPNbH3eOdAAAAJI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[8] https://www.theregister.com/2025/10/17/car_industry_nexperia_supply/

[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aPaw9SyD4wYQaPNbH3eOdAAAAJI&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[10] https://www.theregister.com/2025/10/17/car_industry_nexperia_supply/

[11] https://www.theregister.com/2025/10/20/nvidia_arizona_blackwell/

[12] https://www.theregister.com/2025/10/17/car_industry_nexperia_supply/

[13] https://www.theregister.com/2025/10/15/asml_q3_2025/

[14] https://www.theregister.com/2025/10/12/gelsingers_foundry_dream_lives_on/

[15] https://www.theregister.com/2022/07/05/us_expands_efforts_to_hamstring/

[16] https://whitepapers.theregister.com/