The Chinese Ministry of Commerce warned of the possibility of a new global crisis in semiconductor supply chains, against the backdrop of an escalating dispute between the Dutch chip manufacturer Nexperia and its subsidiary in China.
The ministry said, in a statement published on its official website, that what it described as “new disputes” between the company’s headquarters in the Netherlands and the Chinese branch may lead to the disruption of global chip production, which may have a negative impact on industrial supply chains, especially in the automotive sector.
The global auto industry witnessed production disruptions last October, when Beijing imposed restrictions on the export of chips produced by the company after the authorities in the Netherlands confiscated the company from its Chinese owner, Wingtech Technology. Nexperia chips are widely used in automotive electronic systems.
Although the chip shortage eased after diplomatic negotiations, the dispute between the company’s headquarters in the Netherlands and its unit in China escalated again, as the Dutch headquarters supports removing Wingtech from control, while the Chinese branch demands the return of this control.
Beijing’s warning came a day after the company’s packaging unit in China accused the headquarters in the Netherlands of disrupting the work accounts of all employees in China, which it said had escalated disputes and created new obstacles to negotiations between the two parties.
The Chinese Ministry of Commerce added that the company’s headquarters in the Netherlands “seriously disrupted normal production and operational processes,” warning that if this led to a new crisis in chip production and global supply chains, the Netherlands “will bear full responsibility.”
For its part, the Dutch company did not deny taking technical measures related to information systems, but it denied that this had affected production at its assembly and testing facility in the Chinese province of Guangdong.
The company’s Chinese unit declared its independence from the headquarters last September, after Wingtech was removed from control of the company, while the two parties have since exchanged accusations of obstructing negotiations, and the Dutch headquarters also stopped supplies of silicon chips to the Chinese factory.
Diplomatic efforts in which Beijing, The Hague and Brussels participated have not yet succeeded in reaching a solution to the existing dispute between the two parties.
