Seized Chip Company Races to Split from China

A chipmaker dramatically taken over by the Dutch government is preparing to rapidly step up production outside Beijing’s orbit.

The seizure of Nexperia has already sparked a diplomatic row between Beijing and The Hague. (Photo: Nexperia)

Nexperia, which the Netherlands seized from its Chinese owner last month, is seeking to double production at its site in Malaysia amid a Beijing trade embargo that threatens to bring car manufacturing to a standstill, James Titcomb reported for The Telegraph.

The company’s chips, which are critical to car production, are manufactured in the UK and Germany, but 80% are finished in China.

Beijing has blocked exports of the finished chips, threatening supply and leaving Europe with access to only a fraction of those completed in Malaysia and the Philippines.

Nexperia now plans to double capacity at its facility in Seremban, Malaysia, over the next eight months, according to job postings and LinkedIn updates from company executives.

The plan is unlikely to prevent disruptions in the car industry over the coming weeks, but it could ease long-term concerns if the dispute continues.

The seizure of Nexperia has already sparked a diplomatic row between Beijing and The Hague. Wingtech, Nexperia’s Chinese owner, warned last week that the Dutch company faced an “existential threat,” with hundreds of jobs at risk.

The Hague seized Nexperia over concerns that CEO Xuezheng Zhang was moving intellectual property and operations outside Europe and misusing company funds for his “self-enrichment.”

Wingtech has denied the allegations and demanded that Zhang — who has been replaced as chief executive — be reinstated.

The seizure also comes amid fears that Nexperia could be affected by the U.S. blacklisting of its Chinese parent company.