China Warns Nexperia Feud Could Trigger New Global Chip Crisis

Nexperia
Designed for scale, Nexperia chips deliver dependable semiconductor solutions. [TechGolly]

Key Points:

  • China’s commerce ministry warns of a new semiconductor supply chain crisis.
  • The warning follows a severe internal conflict at Dutch chipmaker Nexperia.
  • The Chinese subsidiary claims the Dutch headquarters disabled employee IT accounts.
  • Tensions started last year when the Dutch government seized Nexperia from Wingtech.

China just issued a stark warning to the world. The commerce ministry says a bitter internal dispute at Dutch chipmaker Nexperia could spark another massive crisis in the global semiconductor supply chain.

The feud involves Nexperia’s headquarters in the Netherlands and its local unit in China. Tensions boiled over again on Friday. The Chinese packaging division publicly accused the Dutch office of suddenly disabling the computer accounts of every single employee working in China.

Chinese officials quickly responded on Saturday. The commerce ministry released a statement blaming the Dutch headquarters for provoking new conflicts and creating major roadblocks for negotiations. The ministry declared that if this computer lockout triggers another global chip shortage, the Netherlands will bear complete responsibility.

The Dutch side pushed back. While executives did not deny shutting off the computer accounts, they strongly disputed the idea that the action halted manufacturing. They claim the assembly and testing facility in Guangdong continues to operate normally.

This corporate drama actually started late last year. In September, the Dutch government stepped in and stripped control of Nexperia from its Chinese parent company, Wingtech. An Amsterdam court even transferred Wingtech’s shares to a Dutch lawyer. In retaliation, Beijing restricted exports of Chinese-made Nexperia chips, which temporarily crippled the global auto industry.

Since then, the Chinese subsidiary declared itself completely independent from its European bosses. The two sides constantly trade accusations of bad faith. To make matters worse, the Dutch office stopped sending essential silicon wafers to the Guangdong factory.

Diplomats from Beijing, Brussels, and The Hague have tried to fix the mess. However, these mediation attempts have failed to break the deadlock. Beijing currently accuses the Dutch government of refusing to force a fair compromise or stop the ongoing court cases.

EDITORIAL TEAM
EDITORIAL TEAM
Al Mahmud Al Mamun leads the TechGolly editorial team. He served as Editor-in-Chief of a world-leading professional research Magazine. Rasel Hossain is supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial expertise in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.
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