China has been accused of stealing sensitive semiconductor technology from a British factory in an attempt to move production to the mainland, according to claims reported by The Times UK. The allegations have further strained relations between Beijing and Europe amid growing concerns over national security and technological dependence on China.
Wingtech, a Chinese technology conglomerate, is accused of transferring confidential manufacturing data from Nexperia’s semiconductor plant in Stockport, Greater Manchester. Nexperia, a Dutch company and a subsidiary of Wingtech, was seized by Dutch authorities last month following what officials described as “serious administrative shortcomings.” The Netherlands invoked Cold War-era national security laws to take control of the firm and dismissed its Chinese chief executive, Xuezheng Zhang.
Dutch investigators now suspect that Xuezheng illegally moved trade secrets from the Manchester site to a facility he owns in China. According to officials cited by the NRC newspaper, Wingtech is alleged to have appropriated specialist techniques used in the production of power chips—known as Mosfets—manufactured at the Stockport plant. These chips, while not cutting-edge, rely on precision processes designed to maximize efficiency. It is believed that Wingtech sought to replicate these techniques at its Chinese subsidiary, WSS, and then close its European operations.
The Times UK reported that the Dutch government’s intervention has prompted Beijing to retaliate by blocking Nexperia’s Chinese operations from exporting semiconductor chips, a move that could disrupt car manufacturing in the UK and across Europe. The standoff underscores the escalating geopolitical tensions surrounding semiconductor technology, which has become a critical front in the global competition for economic and military advantage.
Matt Western, Labour MP and chair of the UK’s joint committee on national security strategy, said the allegations were deeply troubling. “In the UK, as in Europe, some of our most critical supply chains are highly exposed to malicious actors,” he told Politico. “It’s vitally important that we ensure businesses have all the tools they need to reinforce resilience.” Western confirmed that his committee would examine the issue as part of its ongoing inquiry into national security strategy.
Wingtech has denied all allegations of theft, insisting that its collaboration with WSS was a legitimate business decision aimed at improving efficiency and competitiveness within the semiconductor industry. “The process was conducted with transparency and in full compliance with the company’s internal governance procedures and the support of external legal counsel,” a company spokesperson said. The firm added that there was “no ‘technology transfer’ or ‘technology theft’ as alleged,” arguing that Nexperia and WSS are part of the same corporate group and therefore have no reason to “steal” from one another.
The Dutch ministry of economic affairs declined to comment on the specific allegations but confirmed that Xuezheng’s actions had undermined European production capacity. It accused him of misusing financial resources for personal gain and transferring intellectual property rights to entities outside the Nexperia group.
The controversy comes amid heightened scrutiny of Chinese investments in European technology sectors. In 2022, then–business secretary Sir Grant Shapps forced Nexperia to divest most of its stake in Newport Wafer Fab, Britain’s largest microchip manufacturer, citing national security risks. That facility has since been sold to U.S. electronics giant Vishay Intertechnology.
As Europe reassesses its dependence on foreign-controlled semiconductor supply chains, the claims against Wingtech and Nexperia highlight the growing intersection of industrial competition, security policy, and international diplomacy—one that could reshape the future of global chip production.
