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Dutch Takeover of Nexperia Linked to Alleged Dismantling of European Operations

Reuters reports describe design transfers to China that preceded the CEO's court suspension.

Overview

  • The Netherlands placed Nexperia under state oversight on Sept. 30, and a Dutch court suspended CEO Zhang Xuezheng on Oct. 1 over governance concerns.
  • Four sources cited by Reuters say Zhang planned to cut about 40% of European staff, close an R&D site in Munich, and had already moved chip designs and machine settings from Manchester to a Wingtech plant in China.
  • The same sources said equipment from Nexperia's Hamburg facility was slated for relocation to China, reinforcing fears of a broader shift of production.
  • China's Ministry of Commerce blocked exports of Nexperia products from China on Oct. 4, while the company's China unit resumed domestic sales and increased operational independence.
  • Automakers in Europe, the United States and Japan warned of potential production issues because Nexperia's widely used legacy chips are mostly fabricated in Europe but about 70% are packaged in China.