The supply chain challenges faced by Nexperia have intensified after the Dutch government stepped in earlier this year, prompting the company to urge its Chinese units to restart communication and restore normal operations. The chipmaker said in an open letter that it attempted several times to reconnect with its China based entities but did not receive any reply.
Nexperia, which is headquartered in the Netherlands and owned by China based Wingtech, manufactures chips used in cars and consumer electronics. Its production process involves creating wafers in Hamburg and sending them to Dongguan in China for packaging. Tensions rose after the Dutch government acted on September 30 to prevent the company’s former chief executive from shifting European operations to China.
Following the government’s intervention, China halted exports of Nexperia’s finished products on October 4, though some of these restrictions have been partly lifted. The situation became more complex when Nexperia’s Chinese arm stated that it was no longer under European management. In response, the European side stopped shipping wafers to China on October 26 due to unpaid invoices.
In the latest development, China called for a company led solution after a discussion between its commerce minister Wang Wentao and the EU trade commissioner Maros Sefcovic. Both sides stressed the need for Nexperia’s operations to stabilise and for internal cooperation to resume so the supply chain can return to normal activity.
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