Nexperia Refutes Former CEO’s Claims About Chinese Operations and Unpaid Salaries

Tensions Escalate in Dutch-Chinese Semiconductor Power Struggle

Nexperia, the Dutch semiconductor manufacturer, has publicly refuted claims made by its recently-ousted Chinese CEO, Zhang Xuezheng, describing them as “factually incorrect and misleading.” The dispute centers around allegations that the company’s Dutch management was withholding salaries and that Chinese workers could operate independently, claims that Nexperia firmly denies.

“Claims have been made that Nexperia has not been paying salaries to its employees,” the company stated in an official response. “These statements are factually incorrect and misleading.” The company further affirmed that all its facilities are continuing to operate normally despite the ongoing leadership crisis.

The controversy stems from statements allegedly posted on an official Nexperia China WeChat page over the weekend, suggesting the Chinese unit could function as a standalone operation independent from Dutch oversight.

This public disagreement marks the latest development in what has become a complex geopolitical tug-of-war over the chipmaker’s future. The conflict began when the Dutch government unexpectedly intervened to take control of Nexperia, citing the need to protect vital technological assets from potential transfer to China. This decision came after reports emerged that Xuezheng had allegedly attempted to divert company resources and orders to benefit his privately-owned silicon manufacturing operation.

The situation deteriorated further when Chinese authorities responded by blocking exports from Nexperia’s Chinese facility, significantly disrupting the company’s global supply chain and escalating the dispute to an international level.

In an effort to defuse the growing crisis, Dutch Economy Minister Vincent Karremans, who now holds approval authority over all Nexperia management decisions as part of the government takeover, is scheduled to meet with his Chinese counterpart. Additionally, discussions with the European Commission are planned, potentially positioning the EU body as a mediator in the conflict.

Defending the Dutch government’s intervention during an appearance on the Buitenhof television program, Karremans explained, “Europe would have been 100% dependent for these sort of chips, in terms of knowledge, expertise and capacity, on foreign countries,” had no action been taken.

Nexperia’s strategic importance extends beyond its Dutch headquarters. The company is a significant player in the semiconductor industry, specializing in processors used across multiple sectors including consumer electronics, home appliances, agricultural equipment, and automotive technologies. While Nexperia’s products aren’t manufactured using cutting-edge lithography processes, the battle over its control represents a critical flashpoint in the broader U.S.-China trade tensions regarding semiconductor supply chain dominance.

The semiconductor industry has become increasingly central to global economic and national security concerns, with advanced chips powering everything from smartphones to military systems. Countries worldwide have recognized the strategic importance of maintaining domestic semiconductor capabilities, leading to increased government intervention in what was previously largely a private-sector domain.

Industry analysts view the Nexperia situation as emblematic of a fundamental shift in how nations approach technology sovereignty. With semiconductors forming the foundation of modern economies and defense systems, governments are increasingly willing to take extraordinary measures to secure their interests in the sector.

The outcome of this dispute could have far-reaching implications for international technology cooperation and trade relationships, potentially establishing precedents for how similar conflicts might be addressed in the future as nations worldwide reassess their technological vulnerabilities and strategic priorities.

As negotiations continue, the semiconductor industry watches closely, recognizing that the resolution of the Nexperia case may signal broader shifts in the global chip manufacturing landscape and international technological cooperation.