Nexperia Warns of Imminent Production Halts as China Standoff Continues
Dutch semiconductor firm Nexperia has issued a stark warning that its customers across multiple industries are facing imminent production stoppages due to an ongoing dispute with its Chinese subsidiary.
Key Takeaways:
- Nexperia customers report imminent production halts across automotive and electronics sectors
- Company has lost cooperation from Chinese subsidiary since Dutch government intervention
- Multiple communication attempts have failed to resolve the standoff
Production Crisis Looms
In an open letter to its Chinese entities on Thursday, Nexperia stated it “welcomed efforts by Chinese authorities to facilitate the resumption of exports” but emphasized that customers continue reporting “imminent production stoppages.”
The company designs and manufactures essential semiconductors for automotive and consumer electronics sectors, with carmakers from Asia to Europe already raising alarms about potential supply disruptions.
Communication Breakdown
Nexperia revealed it has made repeated attempts to communicate with its subsidiary through calls, emails, proposed meetings, and formal correspondence demanding “performance of rights,” but received “no meaningful response.”
The Dutch firm has pushed for talks via email or a “neutral, professional third-party mediator” to restore predictable supply flows.
Political Context
The standoff began after the Netherlands government took action to gain influence over decision-making at Nexperia, leading to the loss of cooperation from the Chinese subsidiary.
Last week, the Dutch government suspended an order that gave it powers to block or revise decisions at the Nijmegen-based company. Dutch Economic Affairs Minister Vincent Karremans called this move a “show of goodwill” while discussions with Chinese authorities continue.
Wingtech Technology Co., Nexperia’s Chinese owner, did not immediately respond to requests for comment. The company has sought restoration of its full control and shareholder rights over Nexperia in the Netherlands.
Meanwhile, the Chinese government has urged the Netherlands to take concrete actions to resolve concerns around Nexperia and stabilize the global supply chain.
