Letters | The case for separating the Dutch and Chinese arms of Nexperia
Readers discuss the fight for control over the semiconductor company, the case of two skirt-wearing Malaysian women barred from entering a police station, and a potential ban on smoking at construction sites
China should apply the same principle to the Nexperia operations in Guangdong. Spinning off the plant into an entity governed entirely under Chinese law would mirror Europe’s approach and create a clean separation between the European and Chinese portions of Nexperia. No dramatic statement or retaliatory framing is needed; this approach merely applies Europe’s new logic to Asia. Nexperia Europe is now functionally divorced from its Chinese parent, and Dutch authorities have shown no interest in restoring the status quo ante.
To demonstrate restraint and maintain international credibility, China could place the proceeds of the Guangdong divestment in escrow on behalf of Wingtech. This would show that China is following a transparent, commercially recognisable process while ensuring the parent company is not deprived of its economic rights. The escrow mechanism would also counter any claim that China was nationalising assets; it would align with the structure Europe used in the Newport case.
A clean spin-off would stabilise the situation for all parties. Europe would retain its Dutch and British operations under governance structures it considers safe. China would preserve the operational integrity of the Guangdong facilities, supplied largely by domestic wafer manufacturers and serving both Chinese and international customers. The global semiconductor supply chain would benefit from clarity: two parallel entities, operating independently, each subject to its own jurisdiction rather than forced into a contested hybrid.