Hamburg – What began as a proud piece of European technology now threatens to become the stage for a power struggle between China and the West. In the Hamburg district of Lokstedt, the largest European factory of Nexperia – once part of Philips – is running at full capacity. But behind the gleaming cleanrooms and full order books, a storm of political pressure, fear and distrust is raging.
From Philips pride to Chinese ownership
The factory, which has existed for almost a century, grew into a key supplier of semiconductors for the European automotive industry. When Nexperia came into Chinese hands a few years ago, through its parent company Wingtech, alarm bells started ringing across Europe. And now, in 2025, those concerns appear to be becoming reality.
China is slowly tightening the screws: exporting "simple" chips to Europe is being made more difficult, factories fear supply problems, and thousands of jobs are at stake.
CEO suspended, factory in uncertainty
The Dutch Enterprise Chamber suspended the Chinese CEO Zhang Xuezheng. His successor, the German Stefan Tilger, warns that the tensions between China and the West are keeping the company in a stranglehold. "The entire chip industry is globally interconnected. Remove one link, and everything grinds to a halt," he says anxiously.
Meanwhile, the European automotive industry – dependent on Nexperia's chips – risks literally coming to a standstill. Alternatives are hard to find.
Hamburg cherishes its factory
The city of Hamburg is fond of Nexperia. The factory provides work to more than 1,600 people, and according to the local government contributes to "European chip sovereignty". Yet the streets around the factory are buzzing with rumours. "What if China pulls the plug?" wonders one resident.
The factory is literally wedged between residential homes. Expansion is barely possible, but last year Nexperia nonetheless pumped 180 million euros into new technologies using materials such as silicon carbide – an innovation that makes chips more efficient and more powerful.
German government investigates collaboration
But even scientific collaborations are now under scrutiny. The German research institute DESY, which helps Nexperia with chip development, is being investigated by the Ministry of Technology. The reason: they want to prevent sensitive knowledge from disappearing to China.
Unrest on the shop floor
Within the factory walls, the tension is palpably rising. After a ban on working from home, the scrapping of the collective labour agreement, and plans for new shift schedules, the situation came to a head. "China's influence is enormous and not positive," says one employee anonymously.
The union IG Metall speaks of growing stress and unrest. "People just want clarity," says official Patryk Krause. "But as long as the power struggle continues, everything remains up in the air."
Chips full of tension
Despite the chaos, the order books remain full. Demand for chips is greater than ever. But what happens if the tensions escalate further? One employee sums it up succinctly: "Our chips travel all over the world, but our future… that hangs by a thread."