Tensions are escalating at Nexperia as a dispute between its Dutch headquarters and Chinese subsidiary intensifies. Chinese media reported that Nexperia's China branch claimed in a letter that the parent company had suspended local employees' work account access and stopped salary payments. In response, Nexperia China released an open letter on October 19, 2025, assuring staff that wages, bonuses, and benefits would continue to be paid directly by the Chinese subsidiary, not by the Dutch parent company.
The South China Morning Post noted that the letter marks a renewed struggle for control over Nexperia's operations between the Dutch government and Wingtech Technology, the Chinese owner of its mainland business.
Reuters reported that Nexperia headquarters stated on October 19, 2025, that Chinese employees still had access to company platforms and continued to receive regular pay. A day earlier, Nexperia China asserted its right to operate independently of the Dutch parent firm.
China subsidiary asserts independence
In its letter, Nexperia China emphasized that operations, pay, and benefits remain stable. The company said production continues as normal and pledged to protect daily operations from any external disruption.
The Chinese subsidiary reiterated that it operates as an independent legal entity and told staff to follow directives from Nexperia China. It added that employees could disregard any instructions not authorized by the company's legal representative, stressing its ability and responsibility to safeguard staff interests and workplace stability.
Dutch HQ denies allegations
Nexperia's Dutch headquarters told Reuters it was aware of claims from within the Chinese branch alleging that both Nexperia and the Dutch government had exited the Chinese market and that factories were now run by a new entity. The headquarters called these statements "factually incorrect and misleading," denying any unpaid wage allegations.
Production disruptions raise supply concerns
Chinese media reported that Nexperia's Dongguan plant had restricted shipments since the National Day holidays and plans to adopt a "four-days-on, three-days-off" schedule next week. Traders confirmed growing concerns about product shortages and rising prices.
Wingtech Technology, owner of Nexperia's China operations, said the division is pursuing "independent self-rescue" efforts by mobilizing domestic supply chains to meet customer demand. However, the company admitted that full localization remains challenging due to technology transfer and customer certification hurdles.
Nexperia is reportedly seeking regulatory exemptions, though the timeline for resuming normal shipments remains unclear.
Article edited by Jerry Chen
