Nexperia navigates China challenges, supply chain tested

Nexperia has provided an update on its ongoing operational and governance challenges following the Dutch government’s decision to temporarily suspend a control order under the Goods Availability Act.

The company welcomed the move, citing “positive developments” and constructive dialogue between Dutch and Chinese authorities aimed at restoring supply chain stability. However, Nexperia cautioned that a full normalisation of its supply chain still requires active cooperation from its entities in China.

Enterprise Chamber ruling remains in force

Nexperia emphasised that the Enterprise Chamber ruling remains in effect. Thus, Zhang Xuezheng remains suspended and is not acting as CEO. Voting rights in shares indirectly held by Wingtech Technology remain under administration by an independent administrator and cannot be exercised by Wingtech.

Interim CEO Stefan Tilger continues to lead day-to-day operations, supported by COO Achim Kempe, CLO Ruben Lichtenberg, and non-executive director Guido Dierick, appointed by the Enterprise Chamber.

Supply chain resilience and operational disruptions

Nexperia detailed in the statement ongoing challenges in maintaining operational continuity, stressing that it has not stopped wafer shipments altogether. The company said it continues to deliver wafers directly to customers and is implementing alternative supply chain solutions to mitigate disruptions.

“Dedicated teams are working continuously to identify and implement viable paths forward,” the company said. These measures will remain in place until a normal supply chain with a full turnkey flow can be restored.

"All other Nexperia sites—including those in Europe and other parts of Asia—continue to operate as normal. In parallel, we are working with the highest priority to expand capacity at our other locations, and we expect to achieve this in phases over the course of 2026," the company states.

Nexperia noted that its Chinese entities have been acting outside the established corporate governance framework. Examples cited include refusal to accept payments for wafers, misuse of corporate seals, creation of unauthorised bank accounts, and issuing letters containing false information.

Despite all this, the company says that it continued direct wafer shipments throughout October 2025, even under Chinese export restrictions. Nexperia believes that its Chinese facilities should have sufficient stock to continue operations for several months and cautioned that any shipment failures are fully the responsibility of local management in China.