China's commerce ministry warns that escalating internal conflict at chipmaker Nexperia risks triggering a new global semiconductor supply chain crisis. The dispute involves Nexperia's Dutch headquarters and its Chinese subsidiary, with the Dutch side supporting the removal of Chinese parent Wingtech's control and the Chinese unit demanding its restoration.
Recent actions, including the Dutch headquarters disabling office accounts for China-based employees, have intensified the conflict and stalled negotiations. China holds the Netherlands responsible for any resulting crisis, while the Dutch entity disputes claims that its IT actions have affected production.
The impasse persists despite diplomatic efforts, with the Chinese subsidiary declaring independence and the Dutch parent suspending key supplies.
Main Topics: China-Netherlands trade dispute, corporate conflict within Nexperia, global semiconductor supply chain risk, automotive industry impact.
China's commerce ministry on Saturday raised the possibility of another global semiconductor supply chain crisis due to "new conflicts" between Dutch chipmaker Nexperia and its Chinese subsidiary.
Production across the global auto industry was disrupted in October when Beijing imposed export controls on Chinese-made Nexperia chips after The Hague seized the company from âits Chinese parent â Wingtech. â Nexperia's chips are widely used in cars' electronic systems.
While the chip shortage has eased after âdiplomatic negotiations, the conflict between Nexperia's Dutch headquarters and its China-based unit has only âintensified, with the former supporting the removal of Wingtech's control and the latter demanding this be restored.
Beijing's warning on Saturday came a day after Nexperia's âChinese packaging arm accused Netherlands-based headquarters of disabling â office accounts âfor all employees in China.
"(This has) provoked new conflicts âand created ânew difficulties and obstacles for (company-to-company) negotiations," China's commerce ministry said â in a statement published on its official website.
"Nexperia Netherlands âhas seriously disrupted the company's normal production and operation, âand if this triggers a global semiconductor production and supply chain crisis again, the Netherlands must bear full responsibility for this," the ministry added.
In a statement on Friday Nexperia's Dutch entity did not deny the IT action, but disputed the Chinese subsidiary's allegation that this had affected production âat the company's assembly and testing facility in China's Guangdong province.
Nexperia's Chinese subsidiary responded to the removal of Wingtech's control âin September by âdeclaring itself independent â of its Dutch parent. Both entities have since traded accusations of bad-faith negotiating, while the Dutch headquarters has suspended wafer supply to the Guangdong plant.
Efforts from âBeijing, The Hague, and Brussels to push both to a mediated resolution have done little to resolve the impasse.
Beijing has accused The Hague of not doing enough to force compromise from Nexperia's Netherlands headquarters, or end court proceedings in Amsterdam that transferred Wingtech's shares to a Dutch lawyer in October.
Production across the global auto industry was disrupted in October when Beijing imposed export controls on Chinese-made Nexperia chips after The Hague seized the company from âits Chinese parent â Wingtech. â Nexperia's chips are widely used in cars' electronic systems.
While the chip shortage has eased after âdiplomatic negotiations, the conflict between Nexperia's Dutch headquarters and its China-based unit has only âintensified, with the former supporting the removal of Wingtech's control and the latter demanding this be restored.
Beijing's warning on Saturday came a day after Nexperia's âChinese packaging arm accused Netherlands-based headquarters of disabling â office accounts âfor all employees in China.
"(This has) provoked new conflicts âand created ânew difficulties and obstacles for (company-to-company) negotiations," China's commerce ministry said â in a statement published on its official website.
"Nexperia Netherlands âhas seriously disrupted the company's normal production and operation, âand if this triggers a global semiconductor production and supply chain crisis again, the Netherlands must bear full responsibility for this," the ministry added.
In a statement on Friday Nexperia's Dutch entity did not deny the IT action, but disputed the Chinese subsidiary's allegation that this had affected production âat the company's assembly and testing facility in China's Guangdong province.
Nexperia's Chinese subsidiary responded to the removal of Wingtech's control âin September by âdeclaring itself independent â of its Dutch parent. Both entities have since traded accusations of bad-faith negotiating, while the Dutch headquarters has suspended wafer supply to the Guangdong plant.
Efforts from âBeijing, The Hague, and Brussels to push both to a mediated resolution have done little to resolve the impasse.
Beijing has accused The Hague of not doing enough to force compromise from Nexperia's Netherlands headquarters, or end court proceedings in Amsterdam that transferred Wingtech's shares to a Dutch lawyer in October.
Meridiano
