Little-known chip company in global spotlight

The management of Nexperia is causing a lot of controversy. Photo: Bloomberg .

On September 30, the Dutch government announced that it had taken control of Nexperia, citing the Supply of Goods Act of 1952. This move is aimed at limiting influence from China, as Nexperia is currently owned by Wingtech Technology Group, a company on the US trade blacklist.

A day earlier, Washington expanded its export controls to include companies with more than 50% of their shares owned by blacklisted companies, drawing Nexperia into the vortex of trade tensions between the US and China.

In response, on October 4, Beijing banned Nexperia China and its subcontractors from exporting finished components abroad. About 70% of Nexperia’s products are assembled at its factory in Dongguan, Guangdong.

Tensions continued to flare when Netherlands-based Nexperia fired John Chang, its Vice President of Global Sales and Marketing. Nexperia China immediately declared the decision “unlawful” and accused the Western European country of spreading false information to customers.

In an internal letter to employees, the Chinese branch's management affirmed that they would not follow instructions from the Dutch headquarters, emphasizing autonomy in the domestic market.

The split between the two managements has raised concerns about disruptions to the chip supply chain, especially in the auto industry. The Japan Automobile Manufacturers Association (JAMA) said Nexperia had warned parts companies about possible delays in deliveries. Volkswagen Group also expressed similar concerns, saying the incident could affect production plans.

In China, many of Nexperia's customers are closely monitoring the Dongguan factory situation due to concerns about supply risks, according to Caixin magazine.

Natixis economist Gary Ng said the tensions “could lead to new disruptions and even trade restrictions.” He said Nexperia could seek a compromise to maintain stable operations.

However, Dutch officials insist that the country does not want to escalate tensions. Prime Minister Dick Schoof stressed that the takeover of Nexperia was not intended to “oppose China” but was the result of “management errors”.

A Nexperia representative in the Netherlands said the company still sees the Chinese market as a key focus. “Our operations, people and customers in China remain very important to us. Nexperia hopes to find a suitable solution soon,” the person said.

Source: https://znews.vn/cong-ty-chip-vo-danh-thanh-tam-diem-toan-cau-post1597232.html