Nexperia Warns Carmakers Over Quality of Chips from Rogue China Unit

A technology company seized by the Dutch government has warned carmakers against buying microchips from its rogue Chinese division, saying it cannot vouch for their quality, James Titcomb reported for The Telegraph.

Around 70% of Nexperia's chips are sold to car manufacturers. (Photo: Nexperia) 

Nexperia said its Chinese unit was ignoring instructions and had refused to pay for components shipped from its European factories.

“Nexperia’s entities in China have stopped operating within the established corporate governance framework and are ignoring the lawful instructions of Nexperia’s global management,” the company said.

“Therefore, we cannot oversee if and when products from our facility in China will be delivered. Given the lack of transparency and oversight over the manufacturing processes, we cannot guarantee the intellectual property, technology, authenticity, and quality standards for products delivered from the Nexperia facility in China as of Oct. 13.”

The Dutch government took control of Nexperia — which is owned by Chinese tech giant Wingtech — at the end of September and removed its chief executive amid concerns that he was transferring money and technology to a separate Chinese company.

Nexperia’s power chips, known as MOSFETs, are crucial to the global car industry, powering dozens of vehicle functions from engine control to windscreen wipers, seats, and mirrors.

Around 70% of its chips are sold to car manufacturers. Beijing has responded to the seizure by blocking exports of Nexperia’s chips, which are produced in the U.K. and Germany but largely processed at a factory in China.