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Nexperia in war of words despite US-China trade truce

The Dutch headquarters and its China arm trade accusations of misconduct and misinformation, clouding prospects for supply chain stability

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A view of wafers on a production line of Dutch semiconductor company Nexperia. Photo: Reuters
Coco Fengin GuangdongandXiaofei Xuin Paris

The semiconductor stand-off between China-owned Nexperia’s Dutch headquarters and its Chinese operations has escalated into a war of words, with both sides accusing the other of undermining supply chains and spreading misinformation.

The clash – which has placed a cloud over crucial semiconductor supplies for the global car industry – intensified on Wednesday despite a trade truce between Beijing and Washington that temporarily eased some export controls, a move that had been expected to stabilise the sector.
Nexperia’s head office in the Netherlands said in a statement that it could no longer “guarantee the authenticity and quality standards of products delivered from the Nexperia facility in China” after October 13, as it had “lost transparency and oversight over the manufacturing processes” at its largest assembly plant in Dongguan.
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The southern Chinese site accounts for about 70 per cent of the company’s global output.

The Dutch headquarters said that “direct” wafer supply to the Dongguan facility had been suspended and said it was “offering alternative supply chain solutions” through its non-China plants.

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It added that it “continued to act in full compliance with the Dutch government order” and noted that former CEO Zhang Xuezheng had been removed from the board.

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