A critical management stalemate between Dutch semiconductor firm Nexperia and its Chinese parent company Wingtech Technology continues to disrupt global chip supplies, despite diplomatic interventions from both Dutch and Chinese authorities.
The crisis erupted in late September when the Dutch government invoked the Goods Availability Act to temporarily seize control of Nexperia, citing supply chain security concerns. This triggered immediate retaliation from Beijing, which halted all chip exports from Nexperia’s mainland Chinese factories.
Tensions temporarily eased in November when Dutch Economic Affairs Minister Vincent Karremans announced the suspension of government intervention as a “constructive step” toward dialogue with China. Beijing responded by granting limited exemptions for qualified civilian chip exports, providing minimal relief to strained supply chains.
However, the core management dispute remains unresolved. Nexperia’s Dutch leadership, under interim CEO Stefan Tilger, has prevented original chief executive Zhang Xuezheng from resuming control. This deadlock has kept Nexperia’s Chinese factories from restarting full production, extending uncertainty for global customers.
In a dramatic development, Nexperia issued an open letter on Thursday urging its China-based entities to “immediately resume constructive dialogue” and respond to outstanding communications. The company revealed numerous unanswered emails, rejected meeting requests, and stalled decision-making processes that have hindered stabilization efforts.
The letter warned that continued communication breakdown is “unsustainable and detrimental to all stakeholders,” putting customers and suppliers at significant risk. Nexperia proposed employing a neutral external mediator to break the deadlock.
Wingtech Technology responded forcefully on Friday, accusing Nexperia’s letter of containing “misleading allegations and false information.” The Chinese company asserted it has repeatedly expressed willingness to negotiate the restoration of its “lawful control rights” through multiple channels, contrary to Nexperia’s claims of silence.
The parent company presented three formal demands: cessation of factual distortions, constructive proposals on restoring lawful control rights, and immediate dedicated consultations on the control-rights issue. Wingtech has also appealed to the Netherlands’ Supreme Court regarding decisions that stripped it of control.
Analysts note the Dutch government’s seemingly contradictory position—suspending ministerial intervention while maintaining court rulings that prevent Chinese shareholders from regaining control. Chinese commentators have accused the Dutch side of “saying one thing and doing another.”
The dispute has escalated to the highest levels of EU-China relations. Chinese Commerce Minister Wang Wentao discussed the matter with EU Trade Commissioner Maros Sefcovic, maintaining that the disruption “originated with the Dutch side” while urging concrete solutions. Both sides agreed to encourage renewed negotiations between the parties.
Industry observers present two potential scenarios: continued supply suspension if Wingtech cannot regain control, or management restructuring and legal challenges if Chinese control is restored. The outcome will significantly impact global semiconductor availability and EU-China trade relations.