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Chip Giant Nexperia's Global Supply Chain in Crisis
28 Nov
Summary
- Nexperia urges Chinese units to restore chip production amid dialogue failures.
- Dutch government seized Nexperia control to prevent European operations relocation.
- China's halt on Nexperia exports impacts automotive supply chains significantly.
Nexperia, a Netherlands-based chip manufacturer, is grappling with a severe disruption to its global supply chain. The company has issued an open letter to its Chinese entities, imploring them to help normalize production. Nexperia reports that despite multiple formal and informal attempts, including calls, emails, and proposed meetings, no meaningful response has been received from its Chinese operations.
The current crisis stems from the Dutch government's seizure of control over Nexperia on September 30. This action was deemed necessary to prevent the company's former CEO from relocating European operations to China. In retaliation, Beijing imposed a halt on Nexperia's finished product exports starting October 4, though this measure has since been partially eased.
Further complicating matters, Nexperia's Chinese arm declared itself independent of European management following the government takeover. This led to the European side stopping wafer shipments to China on October 26 due to non-payment. China has since called for a company-led resolution, underscoring the complex international dimension of this dispute.
