Beijing urges calm as Dutch Nexperia probe fuels chip fears

This followed the Dutch government’s use of a Cold War-era law to take control of the company.

China has called on the Netherlands to help stabilise the global semiconductor supply chain following a Dutch court ruling that deepened a corporate governance crisis at Nexperia, the Chinese-owned chipmaker at the centre of an increasingly bitter geopolitical row.

Beijing's Ministry of Commerce issued the appeal on Friday, urging "the smooth, stable operation of the global semiconductor supply chain" after the Enterprise Chamber of the Amsterdam Court of Appeal ordered a formal investigation into the policy and conduct of Nexperia Holding and Nexperia, and upheld sweeping interim measures including the suspension of the company's Chinese chief executive and the transfer of nearly all its shares to a court-appointed administrator.

A ministry spokesperson said restoring the smooth, stable operation of the global semiconductor supply chain was "of utmost urgency" and served "the common interests of the industry internationally, including in China and the Netherlands." Beijing called on the Dutch side to "create favourable conditions" for firms from both countries to resolve their internal disputes through "constructive negotiations."

The saga began in earnest when the Dutch government invoked Cold War-era legislation to effectively seize control of the company, sparking fury in Beijing, which responded by banning the re-export of Nexperia's chips. The chips are sent to China for finishing before being shipped to customers, and carmakers warned of major production problems as the components are critical to onboard electronics.

The dispute made world headlines last year when the Dutch government said it was taking the extraordinary step of seizing control of the company, citing fears that corporate governance concerns under Chinese ownership would result in the loss of technological capabilities vital to Dutch and European economic security.

At the heart of the case is the suspicion that chief executive Zhang Xuezheng used Nexperia to benefit affiliated companies within its Chinese parent group, Wingtech. Investigators will also scrutinise the company's dealings with the Dutch Ministry of Economic Affairs and other government bodies.

Following the October interim measures, divisions emerged within Nexperia's global organisation between Chinese operations and European and South-East Asian units, severely disrupting the production chain, triggering multiple financial and legal disputes and jeopardising customer deliveries.

Nexperia was spun off from Philips Semiconductors two decades ago and purchased in 2018 by Wingtech. In 2023, the British government blocked Nexperia's bid to acquire the Wales-based Newport Wafer Fab, citing national security risks.

Nexperia said its underlying business remains "healthy and resilient" and that it will fully cooperate with the investigation. The company is currently led by interim chief executive Stefan Tilger alongside a court-appointed non-executive director. The investigation is expected to take at least six months.