Nexperia Faces Allegations Of Plotting Supply-Chain Shift

Accused of planning to divert its supply chain, Nexperia comes under scrutiny from parent Wingtech and its Chinese unit.

Wingtech, the Chinese parent of Netherlands-based chipmaker Nexperia, accused its Dutch subsidiary of attempting to build a non-Chinese supply chain and permanently sever its control, deepening an already fraught corporate standoff. In a separate statement, Nexperia’s Chinese unit demanded that the Dutch business halt overseas expansion, including plans in Malaysia, urging it to “abandon improper intentions to replace Chinese capacity”.

The escalating accusations follow an open letter issued by Nexperia on Thursday, in which the company claimed repeated efforts to communicate with its Chinese arm had failed. Tensions have sharpened since the Dutch government seized Nexperia two months ago on economic security grounds, a move later upheld by an Amsterdam court, which stripped Wingtech of operational control.

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China responded by blocking exports of Nexperia’s finished chips on 4 October, disrupting global automotive supply chains. Although curbs were eased in early November and the Dutch government last week suspended the seizure after talks, the court ruling remains in effect, leaving the company split between European and Chinese leadership.

The rift intensified as Nexperia’s Chinese unit declared itself independent, prompting European management to halt wafer shipments to its China plant. The Chinese side accused the Dutch unit of stifling communication by deleting employee email accounts and cutting IT access, and alleged the Dutch business was engineering a breakup, citing a US$300 million Malaysian expansion and a goal of sourcing 90% of production outside China by mid-2026.

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Wingtech warned that supply-chain disruptions could re-emerge unless control issues are resolved, describing the dispute as a major threat to industrial security across multiple countries.

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Vidushi Saxena
Vidushi Saxena
Vidushi Saxena is a Journalist at EFY, with a strong interest in news reporting, in-depth research, and developments shaping the business and technology landscape.

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