Nexperia BV Issues Key Update on Global Operations, Governance, and Supply Chain Developments

On November 5, Nexperia BV released an important update outlining recent developments impacting its global operations, corporate governance, and supply chain. The company reaffirmed its commitment to transparency, business continuity, and protecting the interests of its global customers, suppliers, employees, and stakeholders.

Geopolitical Developments and Supply Chain Recovery

Nexperia welcomes the decision by U.S. authorities to suspend implementation of the so-called “Affiliated Entity Rule” for one year. This rule would have extended U.S. export restrictions to entities in which a company listed on the U.S. Entity List holds 50% or more ownership.
As a wholly owned subsidiary of Wingtech Technology Co., Ltd. (“Wingtech”), which was added to the U.S. Bureau of Industry and Security (BIS) Entity List in December 2024, Nexperia could have been affected by this rule.

The company also appreciates China’s commitment to facilitating the resumption of exports from Nexperia’s Chinese manufacturing sites and their subcontractors—ensuring that essential legacy semiconductor products continue to reach the global market. Nexperia looks forward to receiving further details on the specific conditions, standards, and procedures for easing these export restrictions.

Operational Disruptions

Despite these positive policy developments, Nexperia’s entities in China have ceased to operate within the established corporate governance framework and are no longer complying with lawful directives from Nexperia BV’s global management.

As a result, Nexperia BV is unable to monitor when or whether products from its Chinese facilities will be delivered. Due to the lack of transparency and oversight in production processes, since October 13, Nexperia BV cannot guarantee the intellectual property integrity, technology, authenticity, or quality standards of products shipped from its Chinese factories.

Consequently, following the refusal by Nexperia China to pay for wafer deliveries, Nexperia BV announced on October 29, 2025, the suspension of direct wafer supplies to its manufacturing operations in China. This payment refusal is part of a broader pattern of irregularities, which include:

• Unauthorized use of Nexperia China’s corporate seal without proper justification or explanation;

• Opening unapproved bank accounts and directing customers to remit payments to them;

• Issuing unauthorized letters containing false information to customers, subcontractors, suppliers, and employees.

Supply Chain Resilience

Dedicated teams are working urgently to identify and implement sustainable solutions to maintain product supply and minimize disruption.

It is important to note that Nexperia has not completely halted wafer shipments. The company is establishing alternative supply chain pathways to ensure business continuity. All other Nexperia manufacturing sites—including those in Europe and other parts of Asia—remain fully operational.

Products manufactured outside of China are produced exclusively using genuine Nexperia wafers and certified materials, in full compliance with Nexperia’s design standards, process specifications, and quality management systems. These products are 100% authentic, conform to all applicable standards, and continue to be delivered to customers worldwide.

Nexperia remains confident that the current challenges will stabilize soon, in the best interest of all parties involved. The company continues to value its dedicated Chinese employees, who play an integral role in Nexperia’s success. Its operations in China, including the Dongguan facility, remain strategically important to Nexperia’s long-term vision.

Clarification on CEO Position and Media Speculation

Nexperia is aware of recent media speculation regarding the reinstatement of Wing Zhang (Xuezheng Zhang) as CEO. The company confirms that, pursuant to the ruling of the Enterprise Chamber on October 7, 2025, Mr. Zhang has been suspended from his duties as a director and therefore is no longer the CEO of Nexperia.

Furthermore, the Enterprise Chamber ruled that nearly all voting rights associated with Nexperia shares indirectly held by Yongtai Technology Co., Ltd. (“Yongtai”) are now under the management of an independent administrator appointed by the Chamber.
Any statements suggesting otherwise are incorrect.

Compliance with Dutch Government Directive

Nexperia continues to fully comply with the directive issued by the Dutch government. This directive aims to safeguard Nexperia’s manufacturing capacity and technological assets in Europe. It does not affect normal production or daily operations.
However, strategic decisions—such as relocating business units or terminating senior executives—require prior government approval. The directive will remain in effect for up to one year.