The semiconductor manufacturer Nexperia is facing a complex and increasingly precarious situation, effectively split into a Chinese subsidiary and the remainder of the company. While production has resumed at its Dongguan facility in China, a significant shift in payment structures has emerged, raising critical questions about control, financial independence and geopolitical vulnerability.
According to statements released to the Frankfurter Allgemeine Zeitung, customers purchasing chips from the Chinese operation are no longer routing payments through Nexperia Corp., the Dutch-based parent company headquartered in Nijmegen. Instead, payments are directed to accounts “outside our group” a direct outcome of pressure from local Chinese management. This deviation from standard operating procedures is occurring in the Chinese currency, further distancing the Dongguan facility from the rest of the organization.
Nexperia, a crucial supplier to numerous industrial sectors – particularly the automotive industry – currently generates approximately €2 billion in revenue annually. Its ownership history reflects a complex web of transitions, ultimately vesting in the hands of Chinese investor Zhang Xuezheng through his Wingtech group since 2019. This shift in ownership appears directly linked to the current predicament, fueled by escalating political tensions between the Netherlands, China and the United States, compounded by what sources describe as internal power struggles.
The arrangement presents a significant cause for concern. While the company insists this division isn’t immediately existential – “it doesn’t put us in danger” – the erosion of financial control and the creation of a functionally independent Chinese arm raises alarming questions about compliance with international trade regulations and potential for external influence on Nexperia’s strategic direction. The fact that products originating from Dongguan are priced lower than those manufactured in other locations further exacerbates the financial disparity, impacting overall revenue proportionality.
Currently, 50 billion chips out of a total annual production of 110 billion are manufactured for export from Dongguan. The remainder is destined for the Chinese domestic market. The separation of payment flows, combined with this production split, creates a scenario where Nexperia’s leadership in Nijmegen has limited visibility into and control over a substantial portion of its operations. The reliance on a Chinese subsidiary for vital components, alongside this increasingly fractured payment structure, exposes the company and its reliant industries to significant geopolitical risk and demands immediate and thorough investigation by regulatory bodies. The implications for supply chain security and Western technological independence are potentially severe.
