Dutch chipmaker Nexperia denies Chinese unit's claims of independence
What's the story
Nexperia, a Dutch chipmaker, has confirmed that its employees in China continue to have access to company platforms and receive their salaries as usual. The statement comes after the company's China unit claimed its right to operate independently from the Dutch parent company. "We are aware of a message circulated by individuals at Nexperia China falsely claiming that Nexperia and the Dutch government have abandoned the Chinese market," said Nexperia.
Independence claim
China unit asserted right to operate independently
On Saturday, Nexperia's China unit asserted its compliance with Chinese laws and its right to operate independently. This was after the Netherlands announced that talks had begun to ease tensions over export controls. The statement on its official WeChat account said all workers continue to work under the unit's instructions and may reject any "external instructions" not approved by its Chinese legal representative.
Payment responsibility
Dutch government took control on September 30
The statement from Nexperia's China unit also said that salaries and bonuses will continue to be paid out by them, not the Dutch parent company. This comes amid US-China trade tensions, which have led the Dutch government to take control of Nexperia on September 30 and remove its Chinese CEO Zhang Xuezheng. The move was prompted by fears of potential technology transfer to Wingtech, Nexperia's Chinese parent company.
Operational challenges
Nexperia blocked from exporting chips from China
Just days after the Dutch government took control, China's commerce ministry blocked Nexperia from exporting chips from China on October 4. The company has attributed these challenges to the "unauthorized actions" of its former CEO Zhang, who has been suspended by a competent court and no longer represents Nexperia. Despite these issues, Nexperia remains committed to its employees and customers in China.
Production impact
Potential chip shortages feared due to geopolitical tensions
Nexperia's chips, while not technically sophisticated, are produced in large volumes. The company's largest manufacturing site is in Hamburg, Germany. However, over 70% of its chips are sent back to China for packaging in Dongguan, a manufacturing hub in southern Guangdong province. This has raised fears of potential chip shortages disrupting production across the global automotive and electronic industries.