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SILICON SILIC CHIP www.siliconchip.com.au Publisher/Editor Nicholas Vinen Technical Editor John Clarke – B.E.(Elec.) Technical Staff Bao Smith – B.Sc. Tim Blythman – B.E., B.Sc. Advertising Enquiries (02) 9939 3295 adverts<at>siliconchip.com.au Regular Contributors Allan Linton-Smith Dave Thompson David Maddison – B.App.Sc. (Hons 1), PhD, Grad.Dip.Entr.Innov. Geoff Graham Associate Professor Graham Parslow Dr Hugo Holden – B.H.B, MB.ChB., FRANZCO Ian Batty – M.Ed. Phil Prosser – B.Sc., B.E.(Elec.) Cartoonist Louis Decrevel loueee.com Founding Editor (retired) Leo Simpson – B.Bus., FAICD Silicon Chip is published 12 times a year by Silicon Chip Publications Pty Ltd. ACN 626 922 870. ABN 20 880 526 923. All material is copyright ©. No part of this publication may be reproduced without the written consent of the publisher. Subscription rates (Australia only) 6 issues (6 months): $72.50 12 issues (1 year): $135 24 issues (2 years): $255 Online subscription (Worldwide) 6 issues (6 months): $52.50 12 issues (1 year): $100 24 issues (2 years): $190 For overseas rates, see our website or email silicon<at>siliconchip.com.au * recommended & maximum price only Postal address: PO Box 194, Matraville, NSW 2036. Phone: (02) 9939 3295. ISSN: 1030-2662 Printing and Distribution: 14 Hardner Rd, Mount Waverley VIC 3149 54 Park St, Sydney NSW 2000 2 Silicon Chip Editorial Viewpoint Dutch government fumbles with Nexperia In case you’re not aware, NXP Semiconductors, a major manufacturer of microcontrollers and other ICs, was spun off from Dutch electronics giant Philips in 2006. In 2015, NXP acquired Freescale Semiconductor, becoming one of the world’s largest automotive chipmakers. In 2017, NXP spun off its Standard Products division as a new company, Nexperia, which focuses on discrete semiconductors, logic devices and Mosfets. Nexperia was soon acquired by Chinese semiconductor firm Wingtech. Recently, the US Department of Commerce pressured the Dutch government to intervene in Nexperia due to concerns over its Chinese ownership. While Nexperia’s product line isn’t particularly sensitive, its enormous production volume and deep integration into global supply chains make it strategically important. The US demanded the removal of Nexperia’s Chinese CEO, Zhang Xuezheng, and threatened to restrict imports of Nexperia products if this didn’t happen. The Dutch government capitulated under this pressure and, on the 30th of September 2025, invoked their Goods Availability Act for the first time to intervene (see siliconchip.au/link/ac93), citing “serious governance shortcomings” and risks to the continuity of European semiconductor manufacturing. A Dutch court suspended the CEO and appointed a local director with decisive voting rights. The government claimed this would not affect day-to-day operations, but major decisions, like asset sales or leadership changes, could now be blocked or reversed by the Minister for Economic Affairs. Predictably, this has sparked internal disruption, and it seems the move may be backfiring. Nexperia’s Chinese operations have reportedly instructed staff to ignore directives from Dutch headquarters, creating a serious risk of fragmentation. Should China retaliate – for instance, by seizing control of Nexperia’s assets within China – the European side of the business would be left severely weakened. About 80% of Nexperia’s chips are assembled and tested in China, especially at its massive Guangdong facility, which handles over 50 billion units annually. While the situation continues to evolve, it highlights the fragility of international supply chains in a geopolitically tense world. I’m hoping, for everyone’s sake, that this volatile situation can be resolved and Nexperia can continue their production as normal. Ironically, in trying to safeguard European technological sovereignty, the Dutch government may have made its own semiconductor sector more vulnerable. Even if the US had cut Nexperia out of its domestic market, the fallout would likely have been more manageable. That scenario might have even shifted more production toward Europe – not less, as now seems likely. Nexperia’s products are humble yet critical: logic gates, diodes, Mosfets; the basic building blocks found in almost every piece of electronic hardware. Their strategic value comes not from cutting-edge tech, but from sheer scale and ubiquity. The current situation is a reminder that just about any large business can be at geopolitical risk. For engineers and supply managers alike, it reinforces the need to diversify sourcing and keep an eye not just on the price per unit, but on whether all the eggs are in one basket. by Nicholas Vinen Australia's electronics magazine siliconchip.com.au