China’s commerce ministry warned on Saturday that fresh tensions between Dutch semiconductor company Nexperia and its Chinese subsidiary could trigger another global chip supply chain crisis.
The global auto industry faced disruptions in October after Beijing imposed export controls on Nexperia chips produced in China, following a move by authorities in Netherlands to take control of the firm from its Chinese parent Wingtech Technology. Nexperia’s semiconductors are widely used in vehicle electronic systems. Although the chip shortage later eased through diplomatic talks, tensions between the company’s Dutch headquarters and its China-based unit have since escalated. The Netherlands-based leadership has supported removing Wingtech’s control, whilst the Chinese subsidiary has demanded that it be reinstated.
Beijing’s latest warning came a day after Nexperia’s packaging arm in China accused the Dutch headquarters of disabling office system accounts for all employees in the country.
In a statement published on its official website, China’s commerce ministry said the move had sparked fresh disputes and created new hurdles for negotiations between the parties. It also accused Nexperia’s Dutch headquarters of seriously disrupting the company’s normal production and operations, warning that if the dispute results in another global semiconductor supply crisis, the Netherlands would bear full responsibility.
In response, Nexperia’s Dutch entity said it did not deny taking IT-related action but rejected claims from the Chinese subsidiary that the measures had disrupted operations at the firm’s assembly and testing facility in Guangdong Province.
The dispute intensified after the Chinese subsidiary declared itself independent from the Dutch parent in September following the removal of Wingtech’s control. Since then, both sides have accused each other of negotiating in bad faith, whilst the Dutch headquarters has halted wafer supplies to the Guangdong plant.
Attempts by officials in China, the Netherlands, and the European Union to mediate a solution have so far failed to break the deadlock. Beijing has also criticised the Netherlands for not doing enough to encourage compromise from Nexperia’s headquarters or halt legal proceedings in Amsterdam that transferred Wingtech’s shares to a Dutch lawyer in October.
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