Bloomberg reported on December 22 that Yang Mu, chairman of Zhaojin Technology, stated in an interview that the judicial action taken by the Dutch government against Zhaojin Technology has substantially violated the investment protection agreement signed between China and the Netherlands in 2001. The actions of the Dutch government and local executives to drive out legitimate shareholder Zhaojin Technology are described as "deliberate and unjustified intervention."
Yang Mu warned that unless Zhaojin Technology regains control over NXP Semiconductor, global chip supply will continue to face risks, saying, "Every day the dispute continues will further harm the global supply chain, international investment confidence, and shareholder interests."
This is Yang Mu's first exclusive interview with an international media outlet since the NXP Semiconductor incident became public in October. She joined Zhaojin Technology in 2019 and was appointed chairman in July of this year.
Yang Mu denied the false claim of "unlawful technology transfer to China" and demanded the restoration of Zhaojin Technology's control over NXP Semiconductor. She stated bluntly that the joint goal of the Dutch government and some local executives is to "push Zhaojin Technology out" which has held a controlling stake in NXP Semiconductor since its acquisition in 2019.
Yang Mu, Chairman of Zhaojin Technology, Zhaojin Technology
Bloomberg said that this statement highlights the internal divisions within NXP Semiconductor, raising concerns about the stability of key components supply in the automotive and consumer electronics industries. NXP Semiconductor's production model involves transporting wafers from Europe to Asia for back-end packaging and testing, with its largest production base located in China, which is currently not cooperating with NXP (Netherlands).
The report pointed out that although relations between China and the Netherlands were eased at the government level mid-month, conflicts at the corporate level continue. This impact has spilled over to downstream parts of the supply chain. Japanese automaker Honda recently warned that due to chip shortages, some of its factories in China and Japan may have to temporarily shut down.
The direct trigger of the entire dispute originated on September 30 when the Dutch government ordered the "forced takeover" of NXP Semiconductor under the pretext of "national security." Subsequently, a Dutch corporate court ruled to suspend Zhang Xuezhen, founder of Zhaojin Technology, from his position as CEO of NXP Semiconductor, and transferred Zhaojin Technology's voting rights to a trustee appointed by the court. The Chinese operations of NXP severed ties with NXP (Netherlands), and the latter unilaterally stopped supplying wafers to the Guangdong factory.
This effectively split the company into two parallel systems: one controlled by the management designated by the Dutch court, and the other, located in China, aligned with Zhaojin Technology's stance. Due to the need for wafers by NXP (China) and the need for post-processing capacity by NXP (Netherlands), neither side can fully replace the other, leading to a supply chain deadlock.
Yang Mu emphasized that the current global supply disruption "directly and solely" stems from the Dutch "unilateral and unexpected" cutoff.
She pointed out that the Dutch government's actions, including supporting lawsuits against Zhaojin Technology, have violated the investment protection agreement signed between China and the Netherlands in 2001. Zhaojin Technology submitted a dispute notice on October 15 this year, and if the issue is not resolved within six months, it will consider initiating international arbitration to claim damages, which could include an estimated $8 billion valuation of NXP Semiconductor.
A spokesperson for the Dutch Ministry of Economic Affairs declined to comment, stating that the case has been referred to the corporate court, and previous government orders have been suspended.
At a parliamentary hearing on December 4, Karremans, the Dutch minister of economic affairs who initiated the NXP Semiconductor incident, was criticized by MPs as "reckless," "hasty," and "inexperienced," and repeatedly questioned "why he failed to anticipate the Chinese response."
Karremans kept defending himself, claiming the decision was "carefully considered with sufficient basis, and all risks and information were taken into account and carefully weighed." He argued, "(We believed) the likelihood of Chinese export controls was low because such measures are tools for non-proliferation."
According to reports, this debate was arranged at the explicit request of the Dutch parliament before Karremans' scheduled visit to China. However, on the 2nd, Karremans wrote to the parliament, canceling his original trip to China, citing scheduling conflicts. He also stated that if necessary, he would still visit China soon, with the new date to be determined.
Meanwhile, several Dutch MPs indicated that the cancellation of his trip was actually due to the Chinese refusal to meet with him.
In a letter to the Dutch parliament on the 2nd, Karremans tried to shift blame. He released a timeline of the intervention, claiming the decision was made jointly by Dutch Prime Minister Mark Rutte, Deputy Prime Minister, Foreign Minister, Defense Minister, and Trade Secretary on September 25. However, he admitted that the Netherlands informed Britain, Germany, the United States, and China only after taking action.
Dutch media nu.nl criticized that "Karremans' intervention triggered a diplomatic dispute."
Zhaojin Technology announced on November 28 that it had filed an appeal to the Dutch Supreme Court regarding the decision by the Dutch corporate court to strip its subsidiary NXP Semiconductor of control. However, Reuters analysis suggests that the Dutch Supreme Court is unlikely to make a ruling this year.
The core dispute between the parties concerning "technology transfer" centers around a wafer plant plan proposed in 2020 - Shanghai Dingtai Jiangxin Technology Co., Ltd. According to the original plan, Wenti Group, the controlling shareholder of Zhaojin Technology, participated in the project as the investment entity.
Yang Mu stated that this plan has long been part of NXP's global strategy and had been approved by the current Dutch management involved in the dispute center.
"Ironically, the executives who initially signed the agreement are the same three people now accusing Zhaojin Technology of misconduct," Yang Mu added. These executives "used their dominant position as temporary management to significantly increase their own salaries."
NXP (Netherlands) denied the accusations and responded innocently, expressing hope for "constructive cooperation" with NXP (China) and Zhaojin Technology.
As the dispute continues, Reuters reported on December 19 that it obtained a letter sent by NXP (China) to distributors at the beginning of this month, stating that the company has finalized 2026 IGBT wafer capacity with local suppliers and is accelerating the verification of Dingtai Jiangxin Technology's wafer products to ensure "adequate supply." Data shows that IGBT product revenue accounted for approximately 0.1% of NXP Semiconductor's total revenue in 2024.
In the letter, NXP (China) stated that Dingtai Jiangxin Technology will supply 12-inch automotive-grade IGBT wafers, and its Shanghai-based production base currently has a monthly capacity of 30,000 wafers. In addition to Dingtai Jiangxin Technology, NXP (China) will also purchase 8-inch IGBT wafers from Shanghai GAT Semiconductor and United Nova Technology. However, the letter did not disclose the exact quantity of wafer supplies locked in.
It is reported that NXP (Netherlands) plans to expand the packaging and testing capabilities of its factory in Malaysia. Yang Mu stated that this move by NXP (Netherlands) demonstrates "clear intentions to decouple from China."
Despite mutual accusations, Zhaojin Technology still believes there is a solution to the problem. Yang Mu said that as long as Zhaojin Technology regains normal control over NXP, this crisis can be quickly resolved, adding, "We still expect to lead NXP to achieve greater achievements."
On December 22, the spokesperson for China's Ministry of Commerce answered questions regarding the NXP Semiconductor issue. The spokesperson stated that according to the information, the heads of Zhaojin Technology and NXP Netherlands held the first round of negotiations last week, explaining and clarifying the issues they were concerned about, and agreed to continue communication. The Chinese side called on relevant companies to negotiate on issues of control and restoring the supply chain, and to genuinely restore the global semiconductor supply chain.
The spokesperson reiterated that the root cause of the NXP Semiconductor issue is the improper administrative intervention by the Dutch government in business operations. There is a Chinese proverb, "The person who tied the bell must untie it." To completely eliminate global concerns about chip shortages, the Dutch government should immediately revoke the administrative order, urge the former executives of NXP Netherlands to withdraw their lawsuit from the corporate court, create favorable conditions for enterprise negotiations, and quickly restore chip supply to Chinese and foreign automakers in China, and fulfill its due responsibility to restore the safety and stability of the global semiconductor supply chain.
This article is an exclusive contribution from Observer, and without permission, it cannot be reprinted.
Original: toutiao.com/article/7586709010796020262/
Statement: This article represents the views of the author alone.