Tensions between Nexperia’s Netherlands headquarters and its China operations escalate. On November 5, Nexperia Netherlands issued an official statement addressing the ongoing dispute and reaffirming that ousted CEO Zhang Xuezheng has been suspended as a director and is no longer serving as CEO of Nexperia, clarifying rumors about his alleged reinstatement.
Nexperia Netherlands Accuses China Unit of Misconduct and Payment Refusal
Nexperia states that its China-based entities have ceased operating within the established corporate governance framework and are disregarding the lawful directives of Nexperia’s global management. As a result, on October 29, 2025, Nexperia announced that it had to suspend the direct supply of wafers to its facility in China.
As noted in its announcement, one reason for halting wafer shipments to the China plant is Nexperia China’s refusal to pay for the supplied wafers. The company adds that this is not an isolated case but part of a broader pattern of misconduct, including the misuse of corporate seals, creation of unauthorized bank accounts and redirection of customer payments, as well as issuing unauthorized letters with false information to clients.
Nexperia says that, given the ongoing situation, it cannot guarantee the intellectual property, technology, authenticity, or quality standards of products shipped from its China facility as of October 13.
Meanwhile, it also emphasizes that wafer shipments have not been completely halted and that all other Nexperia sites, including those in Europe and other parts of Asia, continue to operate normally.
U.S. Affiliate Rule Suspension
In its statement, Nexperia also expresses relief that U.S. authorities have suspended the so-called “Affiliate Rule” for one year. The rule extends export control restrictions to entities that are 50% or more owned by companies on the U.S. Entity List. The suspension is particularly significant for Nexperia, a wholly owned subsidiary of Wingtech, which was added to the BIS Entity List in December 2024.
Global Industry Reaction
Amid ongoing tensions between Nexperia’s Netherlands headquarters and its China operations, global automakers remain on high alert. According to Reuters, Germany is lobbying China on behalf of German customers affected by the blocked semiconductor maker Nexperia, a spokesperson for the economy ministry said.
In addition, according to sources cited by Reuters, Nissan Motor is set to scale back production of its best-selling Rogue SUV in Japan next week due to a chip shortage linked to Nexperia. The automaker reportedly plans to reduce output by around 900 units at its Kyushu plant in southwestern Japan during the week beginning November 10.
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(Photo credit: Nexperia)
