China Warns of Global Chip Shortages as Nexperia Row Worsens

China’s commerce ministry has raised the possibility of another global semiconductor supply chain crisis due to “new conflicts” between Dutch chipmaker Nexperia and its Chinese subsidiary, Eduardo Baptista reported for Reuters.

While the chip shortage has eased after diplomatic negotiations, the conflict between Nexperia’s Dutch headquarters and its China-based unit has intensified.(Photo: Nexperia)

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 its Chinese parent Wingtech. Nexperia’s chips are widely used in cars’ electronic systems. While the chip shortage has eased after diplomatic negotiations, the conflict between Nexperia’s Dutch headquarters and its China-based unit has intensified.

The Dutch headquarters supports the removal of Wingtech’s control, while the China-based unit has demanded that it be restored.

Beijing’s warning came a day after Nexperia’s Chinese packaging arm accused its Netherlands-based headquarters of disabling office accounts for all employees in China.

“(This has) provoked new conflicts and created new difficulties and obstacles for company-to-company negotiations,” China’s commerce ministry said in a statement published on its official website.

“Nexperia Netherlands has seriously disrupted the company’s normal production and operations, and if this triggers a global semiconductor production and supply chain crisis again, the Netherlands must bear full responsibility,” the ministry added.