The Ministry of Commerce of China has raised the possibility of another crisis in the global semiconductor supply chain due to “new conflicts” between the Dutch chipmaker Nexperia and its Chinese subsidiary.
Production activities across the global automotive industry were disrupted in October, when Beijing imposed export controls on Nexperia chips manufactured in China after The Hague confiscated the company from its Chinese holding Wingtech. Nexperia’s chips are widely used in the electronic systems of cars.
Although the chip shortage eased after diplomatic negotiations, the conflict between Nexperia’s Dutch headquarters and its China-based unit only intensified. The Dutch side supports the measure that removed Wingtech’s control, while the Chinese side demands that control be restored.
The warning from Beijing on Saturday came a day after the Chinese packaging arm of Nexperia accused the Dutch headquarters of disabling the office accounts of all employees in China.
“This has triggered new conflicts and created new difficulties and obstacles for negotiations,” said the Ministry of Commerce in a statement posted on its official website.
“Nexperia Netherlands seriously disrupted the production and normal operation of the company and, if this triggers again a global semiconductor production crisis and the supply chain, the Netherlands should bear full responsibility for it,” the ministry added.
In a statement on Friday, the Dutch arm of Nexperia did not deny the IT action, but contested the Chinese subsidiary’s claim that this had affected production at the company’s Guangdong assembly and test facility in the Chinese province.
The Chinese subsidiary of Nexperia responded to the removal of Wingtech’s control in September by declaring itself independent of its Dutch parent. Since then, the two entities have exchanged accusations of bad-faith negotiations, while the Dutch parent suspended wafer supply to the Guangdong factory.
Beijing, The Hague and Brussels’ efforts to pressure both sides to reach a mediated solution have done little to resolve the stalemate.
James Whitmore