Nexperia China Unit Asserts Independence from Netherlands

Nexperia’s China unit has respected Chinese laws and has the right to operate independently, it said, after the Netherlands announced that talks had begun to try to ease tensions over export controls, Che Pan and Brenda Goh reported for Reuters.

Nexperia’s chips, which are not sophisticated, are needed in large volumes. (Photo: Nexperia)

As Nexperia became entangled in trade frictions between the U.S. and China, the Dutch government on Sept. 30 took control of the company, which makes chips for carmakers and consumer electronics. It cited concerns about the possible transfer of technology to Nexperia’s Chinese parent company, Wingtech.

Days later, on Oct. 4, China’s Commerce Ministry blocked Nexperia from exporting chips from China.

Nexperia’s China unit recently said on its official WeChat account that all of its employees continued to work under the instructions of the China unit. Its employees have the right to reject any “external instructions” not consented to by its Chinese legal representative, it added.

Salaries and bonuses would continue to be paid by Nexperia China, not by Nexperia Netherlands, the statement said.

The tensions have led to worries in the global automotive and electronics industries about chip shortages that could disrupt production.

Nexperia’s chips, which are not sophisticated, are needed in large volumes. The company’s biggest manufacturing site is in Hamburg, Germany, but more than 70% of its chips are shipped back to China to be packaged in Dongguan, a manufacturing hub in southern Guangdong province.