Split Stemmed From Dutch Intervention and Court Ruling
Dutch chipmaker Nexperia produces basic chips widely used in automotive and consumer electronics products. Last year, to prevent Nexperia from moving its business to China, the Netherlands intervened, triggering the company's split. A Dutch court suspended then-CEO Zhang Xuezheng on grounds of alleged mismanagement and stripped Chinese parent company Wingtech Technology of control. The Netherlands and China subsequently deadlocked over Nexperia, at one point threatening global automotive production and exposing supply-chain risks in the automotive industry. Although the Netherlands later suspended its intervention measures, the company had already split in two along national borders, with each side now holding its own business, and Wingtech Technology and Nexperia remain mired in litigation.
Rejects Breakup Plan; Division of Labor Between Operations and Negotiations
Wingtech Technology said last week it had rejected a proposal put forward by court-appointed persons. Under that proposal, Wingtech Technology would control Nexperia's China business, while outside investors would take a controlling stake in the international business. Interim CEO Tilg told Reuters on the sidelines of electronica 2026 in Munich that he is focused on running the business, and that work on negotiating a long-term solution should be left to the Wingtech Technology board and two officials appointed by the Dutch court.
Reintegration Not Ruled Out but Europe Must Face No Risk
Tilg said Nexperia could still recombine with the China business. He believes the Dutch and European authorities will accept reintegration of Nexperia with its Chinese subsidiaries as long as the European economy and industry face no risk. He said there would be nothing wrong with simultaneously holding equity in the China business. However, if the split becomes permanent, Wingtech Technology should be compensated. He said Wingtech Technology is the economic owner of the company's shares, currently unable to exercise control, but should receive fair compensation if it enters into a sale process.
Malaysia Capacity Expansion Still Unable to Meet Demand
Meanwhile, Nexperia has expanded its Malaysia operations to replace Chinese packaging capacity and fill the Chinese capacity gap. However, Tilg added that output remains insufficient to meet market demand. He noted that customers seeking to ensure access to products with supply chains not affected by China have benefited Nexperia. Excluding the China business units no longer under its control, Nexperia's 第3季 revenue was 3億8900萬美元, up 9.3% from the previous quarter, with operating cash flow of 5500萬美元.