Beijing: Dutch chip firm Nexperia stated late Thursday that it has made numerous attempts to re-establish dialogue with Nexperia's entities in China but has not received any "meaningful" response. In an open letter, Nexperia expressed its desire for constructive collaboration and has been actively seeking an open dialogue to restore the regular supply of goods.
According to Anadolu Agency, Nexperia has made several formal and informal attempts to reconnect with its Chinese entities through direct outreach methods such as calls, emails, and proposed meetings. The company extended various offers to collaborate on mutually beneficial solutions and even issued formal correspondence to demand the performance of rights. Despite these efforts, the company has not received a constructive response.
Nexperia has urged the Chinese entities to engage constructively to restore the disrupted supply chain, emphasizing the importance of this collaboration for all parties involved, including its customers. The lack of progress has led Nexperia to issue a public statement highlighting the urgency of the situation.
The company's commitment to transparency, business continuity, and the interests of its global customers, suppliers, employees, and stakeholders remains steadfast. However, the ongoing dispute has significantly impacted its operations.
The situation escalated after Beijing imposed an export ban on chips produced by Nexperia's factories in China, following the Dutch government's decision on Sept. 30 to temporarily control Nexperia. This measure was taken under a 1952 law that allows the government to block or reverse company decisions that could threaten national or European production. The decision was justified by Wingtech during the transfer of technology and production facilities to China.
Despite the Dutch government's announcement on Nov. 19 to suspend "state intervention" against Nexperia after constructive talks with China, the company's supply chain remains disrupted. A memo sent to customers on Oct. 17 revealed that Nexperia's European headquarters had cut off access to employees' computers in China and suspended salary payments.
The halt in exports from Nexperia's Chinese unit has caused supply issues for many manufacturers, particularly automotive suppliers. Nexperia, which manufactures most of its products in Hamburg, Germany, and ships them to China for distribution, produces billions of chips for cars and electronic devices. Recent shortages of these components have threatened automakers' supply chains, leading to production delays.