China places export curbs on Nexperia after Dutch government takeover

Chipmaker Nexperia said Nexperia China and its subcontractors have been banned by Beijing from exporting products it makes in China.

The government of the Netherlands took control [https://seekingalpha.com/news/4503510-dutch-government-seizes-control-of-chinese-owned-chipmaker-nexperia] of Nexperia, which is owned by Chinese company Wingtech Technology, to address concerns about losing domestic access to crucial technology. The Dutch Ministry of Economic Affairs had invoked the Goods Availability Act "due to serious governance shortcomings at semiconductor manufacturer Nexperia."

Nexperia said [https://www.nexperia.com/about/news-events/press-releases/update-on-company-developments] that on Oct. 4, the Chinese Ministry of Commerce issued an export control notice prohibiting Nexperia China and its subcontractors from exporting specific finished components and sub-assemblies manufactured in China.

The company said it is engaging with the Chinese authorities to get an exemption from these restrictions and has deployed all available resources to that end. The company added that it is also in dialogue with all relevant national and local government authorities to mitigate the impact of this measure.

Nexperia noted that Zhang Xuezheng is no longer acting as its CEO.

The company noted that following an emergency hearing, the Dutch Enterprise Chamber on Oct. 7 concluded provisionally that there are valid reasons to doubt sound management at Nexperia under the leadership of Zhang Xuezheng. The Enterprise Chamber ruled Zhang Xuezheng to be suspended as a director.

Nexperia said CFO Stefan Tilger will be acting as interim CEO, Achim Kempe will continue to be the COO, and CLO Ruben Lichtenberg will function as the statutory director of Nexperia Holding B.V. and Nexperia B.V., together with Guido Dierick, who has been appointed by the Enterprise Chamber as non-executive director.

Nexperia added that the Enterprise Chamber ruled that substantially all voting rights on the shares in Nexperia, indirectly held by Wingtech, have been placed under the management of an independent administrator appointed by the Chamber.

Wingtech was placed on the U.S. "entity list" in December 2024. On Sept. 29 the United States Bureau of Industry and Security, or BIS, issued a rule extending U.S. export control restrictions to entities at least 50% owned by one or more entities on the U.S. Entity List.

Nexperia said it is affected due to its status as a wholly owned subsidiary of Wingtech. Nexperia added that the BIS rule provides for a 60-day grace period, and it is striving for an exemption from these rules by BIS.

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