Dutch semiconductor company Nexperia issued a statement on November 5th stating that it has suspended the supply of wafers to its Chinese factories due to its subsidiary in China refusing to pay for the goods. Nexperia is owned by Wingtech Technology Co. in China and mainly supplies power control chips for car manufacturers from Volkswagen Group to BMW Group. The company notified customers on October 29th that it will cease direct supply of wafers to its assembly plants located in China.

Nexperia stated in a statement late on Wednesday that its entities in China have ceased operating within the established corporate governance framework and have ignored instructions from global management.

Nexperia claims that we are unable to monitor when and if products from Chinese factories can be delivered. Due to the lack of transparency and supervision in the production process, we cannot guarantee the intellectual property, technology, authenticity, and quality standards of the products delivered from Nexperia's China factory starting from October 13th.

The Dutch government implemented controls on Nexperia at the end of September due to concerns that Wingtech was weakening the chip manufacturer and threatening the supply of critical components. In response, China has imposed restrictions on the export of Nexperia products, which has put the automotive industry's supply chain at risk and forced car manufacturers to slow down production.

Nexperia stated on Wednesday that the Chinese subsidiary's refusal to pay for wafer shipments to its factories is not an isolated case. The company accuses its Chinese subsidiary of using the company seal of Nexperia China entity without justifiable reasons or explanations; Open unauthorized bank accounts and instruct customers to transfer funds to these accounts; Unauthorized letters containing false information were also sent to customers, subcontractors, third-party suppliers, and employees.

In addition, Nexperia expressed satisfaction with the one-year suspension of the so-called "related party rules" by the US authorities. This rule has expanded US export control restrictions to entities on the US Entity List that hold 50% or more of the shares. Nexperia is a wholly-owned subsidiary of Wentai Technology Co., Ltd. ("Wentai"), which was listed as an entity on the U.S. Department of Commerce's Bureau of Industrial Security (BIS) Entity List in December 2024, so the "related party rules" may have had an impact on it.

Regarding the rumors and speculations about Zhang Xuezheng's reinstatement as CEO, Nexperia stated that the company confirms that according to the ruling of the corporate court on October 7, 2025, Zhang Xuezheng has been suspended from his position as a director. Therefore, Zhang Xuezheng will no longer serve as the CEO of Nexperia.

In addition, the Chamber of Commerce ruled that almost all voting rights of Nexperia shares indirectly held by Wentai Technology have been entrusted to independent managers designated by the Chamber of Commerce for management.

The following is the original statement:

Company Development Update

November 5, 2025

Nexperia released an important update today, outlining recent developments that have impacted its global operations, corporate governance, and supply chain. The company is committed to maintaining transparency, ensuring business continuity, and safeguarding the interests of global customers, suppliers, employees, and stakeholders.

Geopolitical development and supply chain recovery

Nexperia is pleased that the US authorities have suspended the implementation of the so-called 'related party rule' for one year. This rule has expanded US export control restrictions to entities on the US Entity List that hold 50% or more of the shares. Nexperia is a wholly-owned subsidiary of Wentai Technology Co., Ltd. ("Wentai"), which was listed as an entity on the U.S. Department of Commerce's Bureau of Industrial Security (BIS) Entity List in December 2024, so the "related party rules" may have had an impact on it.

We also welcome China's commitment to facilitate the resumption of exports for Nexperia's Chinese factories and subcontractors, ensuring that critical traditional chips can continue to supply the global market. We hope to see more details about the conditions, standards, and procedures for relaxing export restrictions as soon as possible.

Operation interruption

Despite taking these proactive measures, Nexperia's entities in China have ceased to operate within the established corporate governance framework and have disregarded the legitimate instructions of Nexperia's global management.

Therefore, we are unable to monitor when and if products from Chinese factories can be delivered. Due to the lack of transparency and supervision in the production process, we cannot guarantee the intellectual property, technology, authenticity, and quality standards of the products delivered from Nexperia's China factory starting from October 13th.

Therefore, due to Nexperia China's refusal to pay for wafer payments, Nexperia announced on October 29, 2025 that it had to suspend direct wafer supply to its factories in China. This chargeback is not an isolated case, but also includes:

Using the company seal of Nexperia China entity without justifiable reasons or explanations;

Open unauthorized bank accounts and instruct customers to transfer funds to these accounts;

Sending unauthorized letters containing false information to customers, subcontractors, third-party suppliers, and employees.

supply chain resilience

A dedicated team is working urgently to identify and implement feasible ways forward, with the goal of promoting product supply in a sustainable manner.

Please note that Nexperia has not completely stopped wafer shipments. We are providing alternative supply chain solutions to minimize disruptions and maintain delivery continuity as much as possible. All other production bases of Nexperia, including those located in Europe and other parts of Asia, are operating normally. All products produced by Nexperia outside of China use genuine Nexperia wafers and certified materials, and are produced in accordance with Nexperia standard specifications, manufacturing processes, and quality systems applicable to the relevant products, and all use Nexperia's intellectual property. Therefore, these products are completely authentic and comply with relevant standards. These products have been delivered to our customers and will continue to be delivered.

Similarly, we believe that the situation can be eased as soon as possible, which is in the best interests of all parties. We will continue to fully invest in our business in China and respect our dedicated Chinese employees, who are an indispensable part of Nexperia's success. Nexperia's business in China, including its production activities in Dongguan, remains crucial to its long-term strategy and success.

Clarification on the identity of the CEO and media speculation

Nexperia has noticed rumors and media speculation about Zhang Xuezheng's reinstatement as CEO. The company confirms that according to the ruling of the Enterprise Court on October 7, 2025, Zhang Xuezheng has been suspended from his position as a director. Therefore, Zhang Xuezheng will no longer serve as the CEO of Nexperia.

In addition, the Chamber of Commerce ruled that almost all voting rights of Nexperia shares indirectly held by Wentai Technology have been entrusted to independent managers designated by the Chamber of Commerce for management.

Any opposite statement is incorrect.

Comply with the orders of the Dutch government

Nexperia will continue to fully comply with the orders of the Dutch government. This command aims to ensure Nexperia's production capacity and technology in Europe, without affecting normal production or daily operations. However, strategic decisions such as relocating company departments or dismissing executives require government approval, which is valid for up to one year.

About The Author

This is reported by Top Components, a leading supplier of electronic components in the semiconductor industry

They are committed to providing customers around the world with the most necessary, outdated, licensed, and hard-to-find parts.

Media Relations

Name: John Chen

Email: salesdept@topcomponents.ru

This is reported by Top Components, a leading supplier of electronic components in the semiconductor industry. They are committed to p with the most necessary, outdated, licensed, and hard-to-find parts.

Media Relations Name: John Chen

Email: salesdept@topcomponents.ru