UPDATE: In a shocking turn of events, Chinese billionaire Zhang Xuezheng, also known as “Wing,” faces serious allegations of orchestrating a high-stakes heist that jeopardizes the European car industry. The accusations have led to an unprecedented seizure of assets from his technology firm, Wingtech, and the semiconductor company Nexperia, which was acquired in 2019.
JUST ANNOUNCED: The Dutch government invoked a Cold War-era law to take control of Nexperia, a crucial supplier of semiconductor chips for modern vehicles. Reports indicate that Zhang was attempting to transfer key technologies to a Chinese entity, potentially crippling car production across Europe. As of now, car manufacturers, including Volkswagen, are scrambling as chip supplies dwindle. Volkswagen warns it has enough chips to last only until the end of next week.
The situation escalated when Dutch authorities removed Zhang from his position as CEO and initiated a seizure of Nexperia’s assets. Officials allege that Zhang misused company resources for personal gain, claiming he placed $200 million in orders with his other company, WingSky Semi, far exceeding Nexperia’s actual needs. This has sparked national security concerns in the UK, where Nexperia employs over 1,000 people at its Manchester facility.
In an official statement, Dutch officials labeled Zhang’s actions as “undermining production capacities within Europe,” stating that intervention was necessary to protect this vital technological ecosystem. The crisis has prompted Beijing to block exports of Nexperia products, increasing tensions between China and the Netherlands. Chinese staff have been instructed to disregard orders from their Dutch counterparts, further complicating the situation.
Zhang’s business saga is not without controversy. After being convicted of stealing trade secrets in 2005, he re-established himself with Wingtech, which rose to prominence by assembling devices for tech giants like Apple. However, his dealings have drawn scrutiny from both Western and Chinese regulators over the years.
As the semiconductor shortage continues to wreak havoc on the car industry, the implications of this crisis could be profound. If Nexperia’s technology has indeed been compromised, it may be too late to reverse the damage. The automotive sector, already grappling with supply chain challenges, now faces the looming threat of halted production lines.
Authorities in the Netherlands are closely monitoring the situation, while the UK government has expressed concern over national security implications. Zhang, who has not been publicly seen since the court ruling, remains at the center of this unfolding drama, with his future—and that of the European automotive industry—hanging in the balance.
As developments unfold, industry stakeholders are urged to stay alert. The repercussions of this situation could reshape the technological landscape and impact global supply chains for years to come.
