Nexperia Denies Claims of China Exit, Confirms Operations and Salaries Remain Normal

Dutch chipmaker Nexperia has refuted rumors suggesting it has withdrawn from the Chinese market, confirming that its employees in China continue to receive salaries and have full access to company systems. The company’s statement followed claims from its China unit that it has the right to operate independently from its Dutch parent company.

“We are aware of a message circulated by individuals at Nexperia China falsely claiming that Nexperia and the Dutch government have abandoned the Chinese market,” the company told Reuters. “Any statements about unpaid salaries are factually incorrect and misleading,” it added.

The controversy began after Nexperia China announced on its WeChat account that it operates under Chinese law and that its employees follow only internal directives approved by its Chinese legal representative. The unit emphasized that salaries and bonuses are being paid by Nexperia China, not its Netherlands-based parent.

Tensions have escalated since the Dutch government took control of Nexperia on September 30, removing its Chinese CEO, Zhang Xuezheng, over concerns of potential technology transfers to its Chinese parent company, Wingtech. In response, China’s commerce ministry blocked Nexperia from exporting chips from China on October 4.

Nexperia accused its former CEO of “unauthorized actions” and clarified that Zhang has been formally suspended by court order. The company reiterated its commitment to serving both employees and customers in China, despite ongoing geopolitical tensions between the U.S. and China.

Industry experts warn that the dispute could lead to chip shortages affecting global automakers and electronics manufacturers. While Nexperia’s chips are not considered highly advanced, they are essential components used in large volumes. Volkswagen and BMW have acknowledged monitoring potential risks but confirmed their European production remains unaffected.