Nexperia Europe faces supply risk as Shanghai factory sparks potential company split
A modern chip factory in the far southeast of Shanghai has become central to a growing conflict between Nexperia’s European management and Chinese CEO Zhang Xuezheng, with the facility’s role threatening a split between the Chinese and European branches of the company. Such a split could leave Nexperia Europe without critical chip supplies, according to FD.
The Shanghai plant is operated by Wingsky Semi, a company under Zhang’s holding Wentianxia, which also owns Nexperia parent Wingtech. Wingsky and Wingtech are effectively sister companies. Founded five years ago, Wingsky produces chips for the automotive industry but does not design them, manufacturing them for other companies.
The conflict escalated this week when Nexperia’s Dutch offices suspended wafer shipments—semi-finished chips essential for final production—to the Shanghai facility. Interim CEO Stefan Tilger said the suspension is “a direct consequence of local—Chinese—management adhering to agreed payment obligations.” European Nexperia factories supply the half-finished chips to the Chinese plant, where final assembly takes place.
Volkswagen warned Thursday it has only a week’s supply of Nexperia chips, which control functions like windshield wipers and side windows. Each European car contains 350 to 500 of these chips. The conflict now threatens widespread production stoppages across Europe and risks a permanent division between Nexperia Europe and its Chinese operations.
On September 30, Caretaker Minister Vincent Karremans of Economic Affairs (VVD) invoked the Availability of Goods Act to freeze operations at Nijmegen-based Nexperia. Since the order, Chinese parent company Wingtech has been unable to move any parts or machinery from the facility.
One day later, the Enterprise Chamber of the Amsterdam Court of Appeal intervened in Nexperia, suspending the company’s director-owner and placing its shares under independent management. The Dutch government said the timing of the two actions was coincidental.
