Citing sources, Reuters indicated he planned to cut 40% of the European workforce and close a Munich R&D facility. Before his suspension on October 1, Zhang had already transferred sensitive information from the UK plant to China and was preparing to move equipment from Hamburg.
This situation has led to a standoff between China and the Netherlands, raising alarms among car manufacturers in Europe, the U.S., and Japan about potential chip shortages, as Nexperia’s chips, while basic, are crucial for automotive electronics. The Dutch government cited governance issues for its takeover on September 30.
Following this, on October 4, China blocked exports of Nexperia’s products. Despite this, Nexperia’s Chinese division is moving towards independence and resuming sales domestically. The Dutch government is hopeful for negotiations that could restore a unified Dutch-Chinese structure for the company.
