Nexperia funds misused to prop up CEO’s China venture
The Dutch govenrment took over Nexperia because of money misuse by the high management, NRC reports.
Published on October 14, 2025
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The Dutch government intervened at semiconductor manufacturer Nexperia after its Chinese parent company, Wingtech, and its CEO, Zhang Xuezheng ('Wing'), tried to dismiss the European management following a financial dispute, reports NRC. Wing sought to use Nexperia's resources to support his own struggling chip factory in China, WingSkySemi, even though it was not part of the Wingtech group. When Nexperia's co-directors confronted Wing about this, they were dismissed.
Nexperia, a semiconductor company headquartered in Nijmegen, Netherlands, produces chips for industries like automotive and consumer electronics. The Dutch government, concerned about the potential loss of crucial technological knowledge to Nexperia's Chinese parent company, Wingtech, intervened on October 12, 2025, by invoking the Goods Availability Act. This 1952 law, which had never been used before, allows the government to control corporate decisions in emergency situations. The Ministry of Economic Affairs stated there were "acute signals of serious administrative deficiencies and actions" at Nexperia. Following the government's intervention, Wingtech's shares declined sharply at the opening of Chinese stock markets.
Keeping WingSkySemi afloat through Nexperia
The conflict arose when Wing, also the CEO of Wingtech, sought to use Nexperia's funds to bolster WingSkySemi, his wafer-fabrication factory in Shanghai, China. WingSkySemi, a modern chip factory, had encountered financial difficulties in 2025 due to a lack of customers. Despite WingSkySemi not being part of the Wingtech group, Wing allegedly attempted to force Nexperia to place orders worth $200 million, even though Nexperia only needed wafers worth $70-80 million in 2025. This move was seen as a way to keep WingSkySemi afloat.
On September 4, 2025, Wing revoked the banking powers of three Nexperia financial executives, including the Chief Financial Officer (CFO), and granted authority to three individuals without specific financial experience. Nexperia's Chief Legal Officer (CLO), Ruben Lichtenberg, expressed serious concerns, stating that the actions didn't reflect good governance and were not in Nexperia's interest. When fellow board members confronted Wing about these actions, they were summarily dismissed.
Legal and political repercussions
Following the Dutch government's intervention using the Goods Availability Act, European board members appealed to the Enterprise Chamber, which then removed Wing from his executive authority and effectively froze the company. Wing sought diplomatic assistance from the Chinese government, resulting in an export restriction on Nexperia's factory in Dongguan, where chips primarily intended for the Chinese electronics market are manufactured. On October 13, 2025, the Court of Appeal in Amsterdam ruled to suspend Wing as a director, citing concerns about Nexperia's proper conduct. The court appointed G.R.C. Dierick as a non-executive director with a decisive vote and transferred shares to a trustee.
China has opposed the Dutch government's takeover, calling it an abuse of national security. The China Semiconductor Industry Association (CSIA) stated its opposition to the 'abuse of the concept of national security' to impose restrictions on overseas branches of Chinese companies. Nexperia is reportedly in discussions with Chinese authorities to lift the export restrictions. Wingtech has stated it will take action to protect its rights and seek government support.