Nexperia planned to sell some European fabs, lawyer reveals
Nexperia owner explored the possibility of selling some of its factories in Europe and downsize its operations in the Old Continent.
Published on January 14, 2026
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The Chinese owner of Dutch chipmaker Nexperia explored selling its European factories by the end of 2025, according to the company's lawyer, who was heard today at the Dutch Enterprise Chamber, reports national broadcaster NOS.
However, other Nexperia executives were not informed about this plan, codenamed 'Project Rainbow'. The lawyer also revealed that Nexperia undertook significant downsizing of its European operations, transferring activities and systems to China, despite the company's policy of not being perceived as a Chinese company. The Dutch Enterprise Chamber is now considering whether further investigation into this alleged mismanagement is needed.
Nexperia's Project Rainbow
The lawyer represents Wingtech CEO Zhang Xuezheng, also known as Mr. Wing. Wingtech is Nexperia's parent company. The representative stated that 'Project Rainbow' was initiated to mitigate the risk of Nexperia being added to the U.S. blacklist. This project involved investigating the potential sale of Nexperia's factories in Hamburg and Manchester. However, Mr. Wing's lawyer claimed that the sale was deemed unrealistic and not pursued further.
Today's hearing at the Dutch Enterprise Chamber stems from interventions made last fall regarding the chipmaker. The court is now evaluating whether further investigation into potential mismanagement by Wing is warranted. Wing himself was absent from the hearing, with his lawyer citing his inability to attend due to recent events. The Nexperia works council expressed its desire to have Wing present in court.
What happened in the past months with Nexperia
Nexperia, a Dutch chipmaker, found itself at the center of an international dispute in 2025. In response to concerns that crucial knowledge and production facilities might be lost to Europe, the Dutch caretaker Minister of Economic Affairs, Karremans, invoked a Cold War-era law in late September 2025 to assume control of Nexperia.
This decision prompted three board members to file a case with the Enterprise Chamber, alleging that CEO Wing was acting against Nexperia's interests, including by placing substantial orders with another company of his. The judge shared these concerns, resulting in Wing's suspension and the deprivation of the Chinese owner's shares.
This action triggered a significant conflict with China, resulting in a ban on Nexperia's chip exports from China and causing considerable disruptions for automakers globally. In November, the Dutch government decided to suspend its intervention.
To be continued
Despite the resolution of major chip shortages for the automotive industry and Nexperia's resumption of chip deliveries, the company's future remains uncertain. The court's verdict on the matter is not expected today. The Enterprise Chamber may also adopt temporary measures to prevent further damage to Nexperia.