The Semiconductor Game: The Counterattack of RMB Settlement and Its Strategic Significance

From the freezing of assets in the Netherlands to the reversal of RMB settlement, a game for control over semiconductors.

Author: Industry Observer, October 2025

At the end of September, the Dutch government froze the assets of Nexperia and suspended its Chinese CEO in an attempt to seize control. However, the Chinese Ministry of Commerce quickly retaliated by banning Nexperia China from exporting chips produced in China.

Now the situation has reversed. Nexperia China has resumed supply, but with one condition: all transactions must be settled in RMB.

This is China’s countermeasure in the semiconductor game, which not only cuts off the Netherlands’ control over the flow of funds but also strengthens the independent operation of the Chinese region, promoting the use of RMB in the semiconductor supply chain.

1. Game Reversal: From Asset Freezing to RMB Settlement

1. The Freezing by the Netherlands and China’s Countermeasure

On September 30, the Dutch government froze the assets of thirty entities under Nexperia based on the “Materials Supply Act,” suspended Zhang Xuezheng from his CEO position, and transferred the equity to a third party for custody, ultimately appointing foreign directors to gain voting rights.

Behind this series of actions is the influence of the United States. In June, U.S. officials clearly told the Dutch government that for Nexperia to be exempt from the entity list, the Chinese CEO must be replaced.

The Chinese Ministry of Commerce responded swiftly, announcing on October 4 that Nexperia China and its subcontractors were prohibited from exporting finished components produced in China.

2. The Key: Chinese Production Capacity

This countermeasure hit Nexperia at its core. Nexperia’s design and wafer manufacturing are in Europe, but packaging is done in Dongguan, China. The Dongguan factory accounts for 70% of global capacity; without the Chinese factory, Nexperia’s global supply chain would be disrupted.

The Dutch government aimed to control Nexperia but found itself countered. Journalists visiting the Dongguan factory discovered that shipments had been restricted, and the factory was preparing to implement a “four days on, three days off” schedule, not due to a lack of orders, but because of raw material supply issues.

3. The Counterattack of RMB Settlement

Nexperia China began to resume supply to the domestic market, but new rules were established: all transactions must be settled in RMB.

This action cut off the Netherlands’ control over the flow of funds. Settling in USD means money flows through the international banking system, which the Dutch government can monitor and freeze. By using RMB, the money circulates within China’s banking system, beyond Dutch control.

“If the Netherlands wants to play dirty, we will play openly.” — An insider from Nexperia

2. The Deep Game of RMB Settlement

1. Regaining Financial Control

RMB settlement is superficially just a change of currency, but in reality, it is about regaining control. Nexperia China stated that the labor relations of domestic employees are with the domestic company, and salaries and bonuses are paid by the domestic company, not by the Dutch entity.

This means financial independence. The Netherlands has frozen Nexperia’s overseas assets but cannot freeze the accounts in the Chinese region. Domestic funds are managed domestically, and the Dutch government cannot intervene.

2. Strengthening Market Control

In the first half of the year, 48% of Nexperia’s revenue came from the Chinese region. This market is too significant for the Netherlands to afford to lose. Now that the Chinese region is using RMB for settlement, it effectively secures this market.

Need to place an order? RMB. Distributors want to take goods? RMB. Suppliers need payment? RMB. Nexperia China’s cash flow is entirely circulating domestically.

3. Promoting the Internationalization of RMB

The semiconductor industry is a high-tech sector with large transaction amounts and a complex supply chain. Promoting the use of RMB in this field is tantamount to advancing the internationalization of RMB.

Nexperia’s clients are not only domestic companies but also many branches of multinational corporations in China. These companies must use RMB to procure goods. Over time, the share of RMB in semiconductor transactions will increase.

China is using the Nexperia case to promote the use of RMB in the technology supply chain. This is not an emergency measure but a strategic move to change the rules of the game.

3. The U.S.-Netherlands Alliance and China’s Breakthrough

1. U.S.-Led Political Maneuvering

The initiator of this game is the United States. In June, U.S. officials approached the Dutch government and clearly stated that for Nexperia to be exempt from the entity list, the Chinese CEO must be replaced.

The U.S. does not want a Chinese person to control such a large semiconductor company. Nexperia is a Chinese enterprise that spent over 30 billion yuan acquiring Nexperia in 2018.

2. The Netherlands’ Execution and Internal Coordination

The Dutch government acted quickly, and within a week, the Dutch court made three consecutive rulings: suspending Zhang Xuezheng from his CEO position, transferring equity to a third party for custody, and appointing foreign directors to gain voting rights.

More notably, the urgent request was submitted by foreign executives within Nexperia — the Chief Legal Officer, Chief Financial Officer, and Chief Operating Officer. They jointly approached the Dutch court, claiming that the company had issues and requested an investigation.

Source: Public documents from the Amsterdam court

3. China’s Precise Countermeasure

The Chinese Ministry of Commerce understood the situation clearly and responded quickly and accurately. By prohibiting Nexperia China from exporting chips produced in China, it directly hit Nexperia’s core — 70% of its packaging capacity is in China.

The Dutch government aimed to control Nexperia but found itself countered. Without Chinese factories, Nexperia’s global supply chain would be disrupted.

“This is not a business decision; it is a political maneuver.” — Industry analysts comment on the U.S.-Dutch actions

4. The Chain Reaction in the Global Supply Chain

1. The U.S. Automotive Industry at the Forefront

The impact of this game has already spilled over, with the U.S. automotive industry feeling the pressure first. Several automotive manufacturing organizations in Europe and the U.S. have issued warnings that the chip supply disruption caused by the China-Netherlands dispute will soon affect U.S. automotive production.

Nexperia’s power semiconductors are crucial for automotive electronics. Battery management, charging control, and motor drive for electric vehicles all rely on Nexperia’s chips. The electronic systems of traditional fuel vehicles also extensively use Nexperia products.

2. The Netherlands’ Pressure and Willingness to Dialogue

The Dutch government has started to feel anxious. The Minister of Economic Affairs of the Netherlands stated that he would engage in dialogue with China within a few days. The Netherlands also realizes that the situation has escalated.

The logic of the semiconductor industry is straightforward: design, manufacturing, and packaging are all indispensable. Nexperia’s design and wafer manufacturing are in Europe, while packaging is in China. If both sides continue to confront each other, neither can produce a complete product.

3. Customer Choices and Market Forces

How will European and American customers choose? They will pressure the Dutch government to make concessions. This is the brilliance of China’s countermeasures — not a head-on confrontation but cutting off the source of the problem.

China has a vast domestic market. Nexperia China operates independently, supplying domestic customers, which poses no short-term issues. The Netherlands has technology but lacks Chinese production capacity, leaving global customers without goods.

The pressure is on the Dutch side. By controlling overseas operations, they have lost the Chinese market. To resume supply, they must accept China’s rules. This is a case of using their own tactics against them.

5. Strategic Insights and Future Outlook

1. Self-Control of Key Technologies

The Nexperia incident has taught everyone a lesson: key technologies and core production capacity must be in our own hands. Self-control is not just a slogan; it is a survival rule.

China’s investment and pace of independent innovation in the semiconductor field are accelerating, and this game has further solidified that direction.

2. A New Path for RMB Internationalization

Promoting RMB internationalization through high-tech supply chains is a practical path. The large transaction amounts and long supply chains in high-end manufacturing industries make them ideal vehicles for advancing RMB internationalization.

The Nexperia case may become a model for future promotion in more high-tech fields.

3. The Wisdom of Game Theory in Globalization

In today’s deeply interconnected globalization, the industrial chain has formed a pattern of “you have me, I have you.” The game is no longer a zero-sum game but a test of the wisdom and determination of all parties involved.

China’s countermeasures do not sever the global supply chain but ensure its own voice and initiative within it.

“You freeze my assets, I will operate independently. If you want to choke me, I will choke your production capacity first.” — Industry analysts

Conclusion: The Game is Far from Over

The game surrounding Nexperia is far from over, but the counterattack of RMB settlement has already changed the rules. This is not only a struggle for corporate control but also a microcosm of the global semiconductor supply chain’s restructuring.

China’s countermeasures demonstrate confidence and wisdom in the high-end manufacturing sector — not direct confrontation, but leveraging its key position in the supply chain to redefine the rules.

In the future, as China continues to break through in high-tech fields, similar games will continue. But the Nexperia case has proven: with core technologies and key production capacity, one has the confidence to engage in the game.

Independent innovation + key production capacity + RMB settlement, the combination of these three elements constitutes China’s new strategy in the high-tech sector game.

Reference Information: International Electronic Business, Observer Network, Sina Finance, and other public reports.

This article is based on public information analysis and represents the author’s views only.