(MENAFN- Asia Times) The two-month-long confrontation between Nexperia's senior leadership and parent company Wingtech Technology remains locked in a stalemate, even as both the Chinese and Dutch governments signal a desire to dial down tensions.

In late September, the Dutch government invoked the Goods Availability Act to take temporary control of Nexperia, prompting Beijing to halt chip exports from the company's mainland factories.

The standoff eased only after Vincent Karremans, Minister of Economic Affairs in the Netherlands, said the Hague would suspend its order on November 19 as a“constructive step” in consultation with Beijing. China then granted limited exemptions for qualified civilian‐use exports, helping stabilise the supply chain.

However, the disputes have remained unresolved, with Nexperia's Dutch executives refusing to allow original chief executive Zhang Xuezheng to resume control. The ongoing management deadlock has kept Nexperia's mainland factories from restarting chip deliveries, extending uncertainty for global customers.

On Thursday, Nexperia made a fresh appeal for cooperation, releasing an open letter that urged its China‐based entities to“immediately resume a constructive dialogue” and respond to outstanding communications. The company said it had made“repeated and multiple attempts, both formal and informal” to re‐establish contact, only to be met with silence.

The company, currently led by interim Chief Executive Stefan Tilger, told its Chinese unit that Nexperia's leadership is“ready to meet you at any time and at any location.” It said the continued breakdown in communication was now putting customers and suppliers at risk, and was“unsustainable and detrimental to all stakeholders involved.”

The letter also details how unanswered emails, rejected meeting requests, and stalled decision‐making have hindered the company's ability to stabilize production and delivery schedules.

“We must jointly secure the continuity of our global supply chain,” it said, warning that further delays could deepen the disruption already felt across Nexperia's manufacturing ecosystem. As a path to resolution, Nexperia proposed the use of a neutral external mediator, stating it was open to“professional third‐party facilitation” should that help break the deadlock.

Chinese parent firm's response

In response, Wingtech Technology, Nexperia's parent company, said, in a statement on Friday, that

Wingtech concluded its statement with three formal demands:

• Stop distorting facts: Immediately cease misleading the public and acknowledge that the control dispute is the root cause of supply‐chain disruption.
• Respond to lawful claims: Provide constructive proposals on restoring our lawful control rights and protecting shareholder interests.
• Begin talks immediately: Engage in dedicated consultations on the control‐rights issue without delay to create the conditions needed to stabilize the global semiconductor supply chain.

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Wingtech also said on Friday that it has appealed decisions stripping it of control of its Nexperia chipmaking subsidiary to the Netherlands' Supreme Court.

Dutch motives questioned

After the Dutch government invoked the Goods Availability Act on September 30 to take temporary control of Nexperia, the Dutch Enterprise Chamber suspended Zhang and installed Tilger as interim chief executive on October 7. Tilger still leads Nexperia as of now.

Some Chinese commentators criticized the Dutch government for“eating its words” as the suspension of ministerial intervention did not automatically allow Zhang to return to his position or regain full authority.

“The Dutch side is still saying one thing and doing another. Even though the ministerial order has been suspended, the court rulings and emergency measures remain in force, and Chinese shareholders' control is still restricted,” says a Hubei-based columnist writing under the pen name Chunqiu.“No wonder the Dutch agreed so quickly; they stopped the ministerial intervention, but left a big landmine underneath.”

“When challenged, they can claim judicial independence and continue delaying the transfer of control,” he says.“The Dutch side must understand that the cause of the supply-chain chaos lies with them, and if they fail to act, this issue will harm the interests of the European Union (EU) member states, including the Netherlands itself.”

“Nexperia is clearly feeling the pressure,” the Securities Times said in a commentary.“In its open letter, it admits that major customers are warning of imminent production stoppages, so it is now urging the Chinese side to resume dialogue and restart the supply chain.”

The commentary said Nexperia should put forward a solution that genuinely respects facts and law, and that restores Wingtech's lawful control rights and complete shareholder interests.

On Wednesday, China's Commerce Minister Wang Wentao held a phone call with EU Trade Commissioner Maros Sefcovic to discuss the Nexperia dispute and broader trade issues.

Wang said the disruption“originated with the Dutch side” and stressed that China had taken practical steps to keep the industry stable. He urged the EU to press The Hague to offer a concrete, workable plan to help both sides restart internal negotiations.

Sefcovic thanked China for helping avert a wider semiconductor crisis, but agreed the issue was still unresolved. He said the EU was ready to work with Beijing to cool tensions. Both sides agreed to encourage the Dutch and Chinese entities of Nexperia to reopen talks and move toward a long‐term solution that restores supply‐chain stability.

Separately, Beijing has also sought to reassure and entice the EU with broader economic signals.

“China and the EU are highly complementary economically with deep convergence of interests,” Mao Ning, a spokesperson for China's Foreign Ministry, said in a regular media briefing on Wednesday.“We stand ready to continue stepping up economic and trade cooperation with the EU, and promoting the sound and steady development of China-EU relations.”

“We also hope the EU will honor its commitment to openness and seize the important opportunities offered by China's development,” she added.

Two scenarios

Some observers say two scenarios are now taking shape as stakeholders assess the path forward.

The outlook now hinges on whether Wingtech can regain control. If it cannot, shipments from Nexperia's China plants will likely remain suspended, pushing the Dutch‐led team to find alternative ways to keep customers supplied.

If Wingtech does regain control, senior executives in the Netherlands may lose their roles or authority, while the company could face renewed legal exposure under the Goods Availability Act and intensified pressure from the Dutch and US governments.

Nexperia's management has not responded to media inquiries about whether it intends to transfer control back to Zhang, or how it can ensure uninterrupted chip deliveries for customers.

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“After the acquisition of Nexperia in 2019, Wingtech adopted a semi‐autonomous management model,” says a Shandong-based columnist using the pen name“Doudou.”“Even though Zhang became Chief Executive, the company's enterprise resource planning (ERP), manufacturing execution system (MES), and core technical teams remained under the control of the European headquarters.”

He adds that such an arrangement created the hidden risks that eventually led to today's struggle for control.

Read: Dutch retreat on China's Nexperia signals faster chip decoupling

Follow Jeff Pao on Twitter at @jeffpao3

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