Nexperia Says Clients Still Reporting Imminent Production Halts
(Bloomberg) — Nexperia warned that customers in several industries face looming production halts and called on its China unit to take concrete steps to restore dialogue.
The Dutch chipmaker, which has lost cooperation with its Chinese subsidiary since the Dutch government moved to gain influence in decision-making processes, said it welcomed efforts by Chinese officials to facilitate the resumption of exports but that its customers “are still reporting that production will be stopped soon.”
“This situation cannot continue,” Nexperia wrote in an open letter to Nexperia’s affiliates in China on Thursday. The company designs and manufactures basic semiconductors for the automotive and consumer electronics industries. Automakers from Asia to Europe were alarmed about production cuts.
The Dutch government last week suspended an order giving it the power to block or change decisions at Nijmegen-based Nexperia. Dutch Minister of Economic Affairs Vincent Karremans stated that negotiations with Chinese officials are continuing and described this as a “show of goodwill”.
In its letter, Nexperia said it had made repeated attempts to communicate directly with its subsidiary through calls, emails, proposed meetings and even “official correspondence to request fulfillment of rights” but had not received “any meaningful response.”
The Dutch company also forced its China unit to participate in talks via email or a “neutral, professional third-party mediator” to restore predictable supply flows.
Wingtech Technology Co., the chipmaker’s Chinese owner, did not immediately respond to an email seeking comment. It sought full control over Nexperia in the Netherlands and the return of shareholder rights.
Earlier on Thursday, the Chinese government called on the Netherlands to take concrete steps to resolve concerns over Nexperia and restore stability to the global supply chain.
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