UPDATE: In a shocking turn of events, the Dutch government has seized control of Nexperia, a pivotal semiconductor company owned by Chinese billionaire Zhang Xuezheng, amid serious allegations of technology theft that could cripple the European car industry.
Just announced, this unprecedented move follows accusations that Zhang’s technology giant, Wingtech, attempted to transfer critical technology from Nexperia to a separate entity, raising alarms over national security. The implications are dire: without access to Nexperia’s chips, which are essential for modern vehicles, car production across Europe may soon come to a halt.
According to reports, the Dutch authorities invoked a Cold War-era law to act against Nexperia, a company Zhang acquired for $3.6 billion in 2019. He has since been removed as CEO by a Dutch court, and his whereabouts are unknown. This drastic action reflects escalating tensions between the Netherlands and China, as Beijing has reportedly ordered local Nexperia staff to ignore directives from the Dutch government.
The global car industry is on high alert. Nexperia’s chips are crucial for electric vehicles, and industry giants like Volkswagen have warned they may run out of chips by the end of next week. The crisis has already sent shockwaves through the automotive supply chain, as manufacturers scramble for alternatives.
In a detailed statement, Dutch officials allege that Zhang was executing a plan to exploit Nexperia for personal gain, including transferring proprietary chipmaking technology to a company he controls, WingSky Semi. Reports indicate that this involved placing over $200 million worth of orders with WingSky, far exceeding Nexperia’s actual needs, while dismissing executives who raised concerns.
The backdrop to this crisis reveals a complex narrative of Zhang’s rise from humble beginnings in Meizhou, China, to becoming a billionaire with a fortune estimated at $1 billion. His company, Wingtech, started with just £10,000 and has since become a major player in the tech sector.
However, Zhang’s journey has been marred by legal issues, including a 17-month prison sentence for stealing trade secrets from a previous employer, ZTE. These past indiscretions have resurfaced amidst the current allegations, further complicating his situation.
In a world increasingly divided by geopolitics, Zhang has publicly lamented his predicament, stating that he feels trapped between conflicting national identities. He claims that globalization is a “historical inevitability,” yet recent events suggest a more complicated reality.
The UK government has joined the fray, monitoring developments closely as Nexperia plays a critical role in the local economy, employing over 1,000 people in Manchester. The potential fallout from these events could reverberate across the continent, affecting not only jobs but also the broader automotive supply chain.
As the situation continues to evolve, analysts are watching closely. The Dutch government is adamant that their intervention was necessary to protect vital production capacities in Europe and ensure that Zhang’s alleged mismanagement does not undermine the semiconductor ecosystem.
Officials have stated that they are committed to preserving this essential industry, but the clock is ticking. With Nexperia’s operations in jeopardy, the automotive sector is bracing for a possible crisis that could reshape the industry landscape.
Stay tuned for more updates on this developing story as authorities navigate this unprecedented challenge.
