Dutch semiconductor manufacturer Nexperia has publicly appealed to its Chinese subsidiaries to resume engagement and help re-establish normal production flows, following months of disruption triggered by a government takeover in the Netherlands.
In an open letter yesterday (27 November), Nexperia’s Dutch operation said it had made “repeated and multiple attempts” to restore communication channels with its China-based entities but had so far failed to secure a response.
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The company supplies high volumes of standard chips used widely across automotive and electronics applications.
Interruptions to its output have added to pressure on carmakers and other industrial customers, with component shortages contributing to reduced production and temporary factory stoppages.
Nexperia’s production model relies on wafer manufacturing primarily at its site in Hamburg, Germany. These wafers are then shipped to a facility in Dongguan, China for packaging before being dispatched to customers worldwide.
The Netherlands took control of Nexperia in September this year, citing concerns that its Chinese owner Wingtech planned to shift European production to China, posing risks to European economic security.
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By GlobalDataAuthorities in The Hague said the intervention was intended to prevent the former chief executive from shifting European operations from the Netherlands to China.
Following the move, Beijing halted exports of Nexperia’s finished products from China in October, though those restrictions have since been partially eased.
Tensions escalated further when Nexperia’s Chinese subsidiary announced it no longer considered itself under the authority of European management after the Dutch takeover.
Last week, Wingtech called for its authority over Nexperia to be fully reinstated.
In its open letter, the Dutch unit of Nexperia said: “Nexperia B.V. has made repeated and multiple attempts, both formal and informal, to re-establish the dialogue with Nexperia’s entities in China by means of direct outreach via calls, emails and proposed meetings.”
“Regrettably, Nexperia did not receive any meaningful response,” the letter added.
Nexperia originated in 2017 when NXP sold its Standard Products unit to JAC Capital and Wise Road Capital for $2.75bn. In late 2019, Wingtech Technology acquired a controlling stake for $3.6bn.
