Nexperia China Claims Dutch Headquarters Misleading Customers

A Chinese subsidiary of semiconductor manufacturer Nexperia has publicly defied its Netherlands-based headquarters, escalating a high-profile corporate dispute that threatens to disrupt global supply chains in the automotive and electronics industries.

Nexperia Shanghai, one of nine China-registered entities under the Dutch company, published an open letter to customers on its WeChat account Thursday, asserting its operational independence and accusing the parent company of spreading misinformation in an attempt to disrupt normal business operations in China.

“Nexperia China entities strictly adhere to Chinese laws, operating legally in compliance and independently,” the Shanghai unit stated in the bilingual message. The subsidiary assured customers that products manufactured in China meet all quality standards and that protecting client interests remains its “foremost priority.”

The public statement follows an internal letter issued to employees last weekend, instructing them to ignore directives from the Dutch headquarters. This rebellion came after reports that Nexperia’s head office had suspended Chinese employees’ access to work accounts and halted salary payments.

The corporate conflict erupted earlier this month when Dutch authorities seized control of Nexperia’s management, citing national security concerns. Officials ousted CEO Zhang Xuezheng, who is also the founder of Wingtech Technology, the Chinese company that owns Nexperia. The Dutch government’s intervention reflects growing Western concerns about Chinese control of critical technology infrastructure.

The dispute has already begun affecting manufacturing operations. Production has reportedly been disrupted at Nexperia’s largest assembly plant in Dongguan, Guangdong province, which accounts for approximately 70% of the company’s global output. According to Chinese financial newspaper National Business Daily, the facility is experiencing limited shipments and reduced employee workloads due to shortages of wafers normally supplied by Nexperia’s European fabrication facilities.

The impact may soon extend to global automotive supply chains. On Thursday, the Japan Automobile Manufacturers Association released a statement noting it had been informed by a Dutch chipmaker about possible disruptions in semiconductor deliveries that could affect its members’ global production operations. While the statement did not specifically name Nexperia, industry analysts have connected the warning to the ongoing dispute.

In response to the Dutch takeover, China’s Ministry of Commerce implemented countermeasures, barring Nexperia’s domestic units and subcontractors from exporting specific Chinese-made components. This restriction further complicates the company’s global operations, as Nexperia’s business model relies on the seamless movement of materials and products between its European and Asian facilities.

Diplomatic efforts to resolve the situation are underway. Chinese Commerce Minister Wang Wentao spoke with Dutch Minister for Economic Affairs Vincent Karremans on Tuesday, urging the Netherlands to “promptly and properly” resolve the issue while protecting Chinese investors’ rights. Wang has also accepted an invitation to Brussels for crisis talks, according to European Union trade chief Maros Sefcovic.

The conflict exemplifies the growing tensions in global semiconductor supply chains as geopolitical concerns increasingly influence corporate governance and international trade. Nexperia, which produces essential components for various electronic devices and automotive systems, occupies a critical position in global technology supply networks.

As both sides maintain their positions, the dispute threatens to further fragment the semiconductor industry along geopolitical lines, potentially accelerating efforts in both China and Western nations to reduce mutual dependencies in critical technology sectors.