Still possible chipmaker Nexperia could reunite with Chinese operations, CEO says

Nexperia Considers Reuniting Chinese Operations Amid Finance Uncertainty

By Nathan Vifflin

Geopolitical Tensions and Corporate Developments

Nexperia's Split and Potential Reunification

MUNICH, Nov 10 (Reuters) - Nexperia BV could still reunite with its Chinese operations, the Dutch chipmaker's chief executive told Reuters on Tuesday, even though, more than a year after geopolitical tensions split the company, the two sides now have separate businesses.   

If the split becomes permanent, however, Nexperia's Chinese parent Wingtech Technology should be compensated, interim CEO Stefan Tilger said in an interview on the sidelines of the electronica 2026 conference in Munich.

"They are the economic owner of the shares of the company, and they can't exercise control right now. But it doesn't mean, of course, that they shouldn't be compensated fairly if a sale process should happen," he said. 

Role of Wingtech and Dutch Authorities

With Tilger focused on running the business, he said negotiating a long-term solution was up to Wingtech's board and two Dutch court-appointed officials.

Nexperia's Operational Challenges and Market Response

Replacing Lost Chinese Capacity

NEXPERIA REPLACING LOST CHINESE CAPACITY, CAN'T MEET DEMAND

Nexperia makes simple chips widely used in cars and consumer electronics. Its corporate rupture was triggered by Dutch state intervention last year, aimed at preventing the company from moving operations to China.

A Dutch court separately suspended then-CEO Zhang Xuezheng, citing suspected mismanagement, and stripped Wingtech of control. 

Impact on Global Supply Chains

The subsequent standoff between the Netherlands and China over Nexperia sparked a near-crisis for global carmakers that threatened production and laid bare supply chain risks in the industry.

The Netherlands later suspended its intervention. But the company split along national lines, and Wingtech and Nexperia remain embroiled in lawsuits.

Proposals and Future Prospects

Last week, Wingtech said it had rejected a proposal by the court appointees under which it would control Nexperia's Chinese operations while outside investors would take a controlling stake in the international business.

Tilger said he believed Dutch and European authorities would accept reunification of the company, provided Europe's economy and industry faced no risk. 

"I don't think there's anything against also holding an equity stake in the Chinese operations," he said.

Financial Performance and Strategic Shifts

Expansion and Revenue Growth

Nexperia has, in the meantime, expanded operations in Malaysia to replace Chinese packaging capacity, he said. However, the company's production was "still insufficient to meet the demand levels in the market," he added. 

Nexperia is also benefiting from customers seeking to secure products with a supply chain that is not exposed to China, Tilger said.

Quarterly Results

Excluding the Chinese units it no longer controls, Nexperia reported third-quarter revenue of $389 million, up 9.3% from the previous quarter, with $55 million in operating cash flow.

(Reporting by Nathan Vifflin; Writing by Toby Sterling; Editing by Joe Bavier)