Did China try to move Dutch chip technology home? Inside the Nexperia row

In September this year, Dutch authorities seized Nexperia, a chipmaker owned by Chinese firm Wingtech, citing fears that key research and intellectual property would be moved to China

When Chinese technology firm Wingtech bought Dutch chipmaker Nexperia in 2019, the deal seemed routine. But five years later, that acquisition has evolved into a geopolitical showdown, triggering Dutch state intervention, factory disruptions and diplomatic tensions stretching from Washington to Beijing.

 

The Netherlands’ intervention in semiconductor maker Nexperia has escalated into a technology and diplomatic dispute after years of warnings that Beijing-linked ownership could pose security risks, according to The New York Times (NYT). Former Nexperia chief executive Frans Scheper now says the risks were visible early, offering a rare insider account of how China’s ambitions to secure semiconductor technology came into conflict with Western governments. He outlined how Dutch officials were warned early but acted only years later.

 

What happened in the Nexperia row?

 

In September this year, Dutch authorities seized Nexperia, a chipmaker owned by Chinese firm Wingtech, under an emergency economic-security law, citing fears that key research and intellectual property would be moved to China. A court later removed Wingtech’s controlling shareholder, Zhang Xuezheng, as chief executive.

 

The NYT reported that the actions came after years in which officials received early warnings but did not act. Scheper told the newspaper that he had informed the government in 2019 that Zhang intended to shift knowledge and technology to China shortly after acquiring the company.

 

Nexperia produces basic chips used in cars and appliances and employs thousands of people in Europe, the United States and Asia.

 

Why did the Dutch government step in so late?

 

According to the NYT report, Dutch officials were aware as early as 2020 that Zhang had previously been convicted in China for stealing trade secrets, but no formal barriers to foreign tech takeovers existed until 2023.

 

The turning point came this year, when the US signalled export controls targeting majority-owned subsidiaries of firms on its “entity list”. Wingtech is already listed for allegedly helping China acquire restricted chip-making technology. Dutch authorities feared Nexperia could also be affected, disrupting European supply chains.

 

Court papers cited by the report showed that the Netherlands sought to insulate Nexperia from these restrictions by restructuring its ownership to increase independence. Zhang initially cooperated but later resisted, prompting escalation.

 

What is the dispute between Nexperia’s Dutch and Chinese units?

 

China briefly froze exports of Nexperia chips made in its factories after the Dutch seizure, forcing European carmakers to slow or suspend production.

 

Nexperia’s Dutch and Chinese entities are now accusing each other of misconduct. Dutch officials allege that the Chinese unit misused the company seal and created unauthorised bank accounts, while the Chinese arm said on social media that the Dutch side “disregards the facts” and attempted to cut China out of the supply chain, according to the NYT.

 

The Dutch ministry of economic affairs said it became aware in September of “advanced plans” to close or sharply scale back European sites.

 

China’s commerce minister has told European officials that the Netherlands should stop interfering in business decisions, according to a ministry summary cited by the report. Beijing has argued that The Hague is responsible for the chip supply disruption.

 

Analysts say the Dutch chip sector wants access to China’s market but is trapped between rising US restrictions and Beijing’s push for technological advantage.

 

Who is Zhang Xuezheng, and why is he under scrutiny?

 

Zhang spent more than a year in detention two decades ago for stealing software code from his former employer ZTE, netting more than 1.1 billion renminbi and forcing ZTE to shutter a product line. Last year, China’s securities regulator fined him and associated firms 18 million renminbi for failing to disclose share purchases.

 

Despite these risks, the report noted that Zhang pursued the Nexperia acquisition even though it exposed Wingtech to significant debt, with Chinese experts comparing the deal to “a snake swallowing an elephant” because the Dutch company was larger than its buyer.

 

Where does the Nexperia case stand now?

 

Washington, Beijing and The Hague have taken steps to ease tensions, including lifting the seizure order. However, the Dutch court ruling ousting Zhang as chief executive remains, and Wingtech has said it will appeal, leaving the future of the company and Europe’s role in the semiconductor power struggle unresolved.