A positive signal: CEO of Nexperia: Reintegration with Chinese operations remains possible. Tilg, interim CEO of Dutch semiconductor manufacturer Nexperia, told Reuters on November 10 that although the company has been separated from its Chinese operations and now operates independently, future reintegration remains a possibility. If the separation becomes permanent, Nexperia’s Chinese parent company, Wanxiang Technology, should receive compensation. He believes European and Dutch authorities would accept such reintegration as long as it does not pose risks to Europe’s economy or industrial base.
This is indeed a positive signal—but it should not be prematurely interpreted as reconciliation. The shift is not due to a sudden change of heart by Dutch regulators, but rather mounting practical pressures. Nexperia Netherlands is currently expanding production capacity in Malaysia to replace China-based packaging and testing capabilities, yet Tilg himself acknowledged that current output still falls short of market demand. Nexperia’s chips are widely used in automotive electronics, with major OEMs like Volkswagen and BMW heavily reliant on its supply. A forced, permanent split would first impact Europe’s domestic supply chain most severely.
The core issue lies in Nexperia China’s demonstrated ability to operate independently. Since the supply cutoff in October 2025, the Chinese unit has established a fully self-reliant domestic supply chain within less than a year, achieving small-scale production on its 12-inch wafer platform. MOSFET and logic IC products have also achieved full localization of their supply chains within China. In essence, the Dutch side now faces a difficult dilemma: it cannot cleanly sever ties, yet dares not retain full control. This explains why the signal of potential reintegration has emerged.
However, actual reintegration remains unlikely. The so-called “dual-circle” proposal—under which Wanxiang would retain control over Nexperia China while external investors take majority stakes in overseas operations, leaving Wanxiang with only minority ownership—has already been rejected by Wanxiang. The proposal, put forward by the court-appointed administrator in the Netherlands, was explicitly declined in writing by Wanxiang, which deemed it a de facto expropriation driven by geopolitical discrimination. Even more strikingly, Nexperia Netherlands has filed a lawsuit in Amsterdam district court against Wanxiang and related entities, seeking damages of $2 billion, alleging breach of contract and unfair competition due to the establishment of a localized supply chain in China.
Tilg’s remarks, fundamentally, serve as a strategic signal from management. He is signaling to stakeholders that complete decoupling from China carries excessive costs, and reintegration is not an unacceptable option. Yet he also clarified that the authority to negotiate long-term solutions rests with Wanxiang’s board and the Dutch court-appointed officials; his role is limited to daily operations. At present, the short term likely remains locked in a stalemate of “separate operations and ongoing litigation.” The door to reintegration remains open—but the key is not in Tilg’s hands, but in the balance between Dutch regulatory decisions and the tangible needs of Europe’s industrial ecosystem.
Original: toutiao.com/article/1881530803899657/
Disclaimer: The views expressed in this article are those of the author alone.