The Dutch government opens direct talks with Beijing over the fate of Nexperia

The Dutch government is opening direct talks with Beijing over the fate of Nexperia, the Chinese-owned chipmaker at the heart of a growing diplomatic fight that’s shaking up global car production.

Vincent Karremans, the Netherlands’ economy minister, said on Sunday that he will meet a senior Chinese government official within days to figure out how to end the dispute.

The confrontation began when the Dutch government seized control of Nexperia NV, a key supplier of chips used in cars, on September 30, triggering China’s retaliation, which just happened to be a ban on exports of the company’s finished products.

The two sides are now scrambling to prevent a supply chain crisis that could hit automakers worldwide, from Volkswagen to BYD.

Karremans said the Chinese “have the impression that we are teaming up with the Americans,” but insisted the intervention was about protecting Europe’s technology, not about politics.

Karremans explained that the move was meant to stop Zhang Xuezheng, Nexperia’s former Chinese CEO, from transferring operations and intellectual property out of Europe.

“This is being discussed at the highest level,” Karremans said during an interview on Dutch TV show Buitenhof, confirming that Dutch diplomats have been in constant contact with their Chinese counterparts as talks intensify.

China bans exports as chip supply fears grow

The fight over Nexperia has put automakers on edge, because the company’s chips aren’t high-end semiconductors, but they’re mass-produced in huge numbers, mostly from its factory in Hamburg, Germany, before being shipped to China for packaging and distribution across the global auto industry.

With China now blocking exports, European carmakers are warning of shortages that could stall production if new suppliers aren’t found soon. “We have a mutually dependent relationship,” Karremans said. “Everyone has an interest to solve this together.”

Nexperia, which posted $331 million in profit in 2024, is one of Wingtech Technology’s most valuable assets, and it produces standard power and analog chips that every car on the road depends on, from simple sensors to control units.

For China, the ban is leverage, but for Europe, it’s a massive headache. Still, Chinese automakers also rely heavily on Nexperia’s output, creating pressure on both governments to find a middle ground before the crisis drags on.

Nexperia China rebels as management war escalates

While politicians trade statements, Nexperia China has gone rogue. Over the weekend, its management issued a letter to employees, telling them to “follow local management orders and ignore instructions from the Dutch head office.”

The message, shared on the company’s Chinese social media account, declared that Nexperia China was an “independent Chinese entity.” It said workers “have the right to reject external instructions” from Europe, and doing so “will not form any breach of work discipline or regulations.”

The directive applies to Nexperia’s packaging plant in Dongguan, which produces about 70 percent of the company’s annual output, as well as branches in Shanghai, Beijing, Shenzhen, and Wuxi. It also noted that salaries are paid locally, not by the headquarters in Nijmegen. The move openly defies Dutch control, setting up a direct confrontation between The Hague and Wingtech Technology, which bought Nexperia in 2019.

The rebellion follows the Dutch decision to oust Zhang Xuezheng from his post and take control of management, a step justified on national-security grounds. That decision led China’s Ministry of Commerce on October 4 to impose new export restrictions on Nexperia’s Chinese subsidiary and its subcontractors.

Workers at the Dongguan site told The Post last week that they’re worried about being caught in the political fight, describing the plant as “a bargaining chip” in a battle far bigger than them.

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