Chinese Firm Accused of Stealing British Microchip Secrets Amid Dutch Takeover Crisis

A major row has erupted in the European semiconductor sector following allegations that a Chinese-owned technology conglomerate, Wingtech, misappropriated trade secrets from Britain as part of an intended offshoring of microchip production. Dutch government officials contend that Wingtech orchestrated the transfer of production techniques developed at the Nexperia facility in Stockport, Greater Manchester, to a company subsidiary in China, according to reports circulated in the Dutch media.

The Dutch government made headlines last month by seizing control of Nexperia from Wingtech using national security laws modelled on Cold War era provisions. In tandem, the company’s chief executive, Xuezheng Zhang, was removed from operational duties. This move has prompted a regulatory stand-off, with Chinese authorities subsequently blocking Nexperia’s Chinese operations from exporting semiconductors, a standoff with repercussions for automotive supply chains.

At the centre of the matter are so-called Mosfet power chips, integral to automotive electronics, whose manufacturing process has reportedly been painstakingly refined in the Manchester plant for maximum efficiency. Dutch authorities claim that Mr Zhang facilitated the “improper transfer of production capacity, financial resources and intellectual property rights to a foreign entity” putting the European plant’s continued existence in jeopardy. There were stated plans to shift chip production to a subsidiary named WSS in China and shutter parts of the European operation.

Wingtech maintains that collaboration between WSS and Nexperia was a strategic, transparent move to improve operational efficiency and competitiveness within the global semiconductor industry. A spokesperson noted that all processes were transparent and subject to oversight, including the chief executive’s abstention from votes given his links to the Chinese entity.

The Dutch ministry of economic affairs voiced concern that knowledge leakage could seriously undermine future production capabilities in Europe. These concerns prompted the immediate replacement of Mr Zhang with Stefan Tilger, Nexperia’s chief financial officer, and the installation of government oversight at Nexperia’s helm. The extent to which national and global automotive supply lines will be impacted by the dispute is now the subject of significant industry scrutiny.

While Nexperia’s core semiconductor wafers are produced in Manchester and Hamburg, much of the final assembly historically takes place in Dongguan, China. The regulatory standoff has escalated, with Nexperia’s Chinese staff instructed to disregard directives from their Dutch parent, deepening corporate discord. Wingtech has argued that Nexperia will be rendered unviable if it remains under Dutch government control, predicting a loss of customers and market confidence.

The takeover, and the circumstances surrounding it, reflect mounting international anxieties over the security of technology supply chains. European authorities remain adamant that control of strategic industrial knowledge must not be allowed to slip beyond their jurisdiction, a stance likely to shape the industry’s structure and governance in years ahead.