China issues a warning about potential global chip shortages as the Nexperia dispute intensifies once more
China’s commerce ministry on Saturday indicated the potential for another global semiconductor supply chain crisis stemming from “new conflicts” involving Dutch chipmaker Nexperia and its Chinese subsidiary.
In October, production throughout the global auto industry faced disruptions due to Beijing’s implementation of export controls on Chinese-made Nexperia chips, which are semiconductor components used in electronic systems, following The Hague’s seizure of the company from its Chinese parent, Wingtech. These chips are extensively utilized in the electronic systems of vehicles.
Although the chip shortage has lessened following diplomatic discussions, the tension between Nexperia’s headquarters in the Netherlands and its unit in China has grown stronger. The former advocates for the removal of Wingtech’s control, while the latter insists on its reinstatement.
On Saturday, Beijing issued a warning following accusations from Nexperia’s Chinese packaging division against its Netherlands-based headquarters for disabling office accounts for all employees in China. China’s commerce ministry stated in a release on its official website that this action has “provoked new conflicts and created new difficulties and obstacles for company-to-company negotiations.”
Advertisement · Scroll to continue “Nexperia Netherlands has significantly impacted the company’s usual production and operations, and if this leads to another global semiconductor production and supply chain crisis, the Netherlands must take full responsibility for it,” the ministry stated.
On Friday, Nexperia’s Dutch entity acknowledged the IT action but contested the Chinese subsidiary’s claim that it had impacted production at the company’s assembly and testing facility located in Guangdong province, China.
Nexperia’s Chinese subsidiary announced its independence from its Dutch parent following the removal of Wingtech’s control in September. Both parties have since exchanged accusations of insincere negotiations, while the Dutch headquarters has halted wafer supply to the Guangdong facility.
Attempts by Beijing, The Hague and Brussels to encourage a mediated resolution have not significantly alleviated the deadlock.
Beijing has criticized The Hague for failing to exert sufficient pressure on Nexperia’s headquarters in the Netherlands to reach a compromise or to conclude the court proceedings in Amsterdam that resulted in the transfer of Wingtech’s shares to a Dutch lawyer in October.
