Recently, the Dutch government froze the control of Nexperia, a Dutch subsidiary of China Wingtech Technology, based on national security reasons. The Chinese government simultaneously launched countermeasures and announced the implementation of exp...
Recently, the Dutch government froze the control of Nexperia, a Dutch subsidiary of China Wingtech Technology, based on national security reasons. The Chinese government simultaneously launched countermeasures and announced the implementation of export restrictions on Nexperia. Nexperia said on Sunday (19th) that its Chinese subsidiary is currently operating as normal, and employees can still use the company's internal platform normally and receive their salaries as scheduled.
Previous reports pointed out that all employees of Nexperia China issued a notice to Chinese customers on the 17th, stating that they received a notice from the Netherlands headquarters in the early morning that they would no longer be paid and all system permissions were completely blocked. The notice read, "Nexperia China is suffering from ruthless suppression that clearly violates the law and moral bottom line. The Chinese market has been abandoned by the current European management."
In this regard, Nexperia responded to Reuters, "We have noticed the information spread by some Nexperia China employees, falsely claiming that the company and the Dutch government have abandoned the Chinese market and that the factory has been operating under the name of a new entity. These claims are not true." The company emphasized that the remarks about "unpaid wages" are false and misleading.
Nexperia stated in China’s official WeChat announcement on Saturday (18th) that the unit abides by Chinese laws and has the right to operate independently in accordance with the law. All employees will continue to work according to the instructions of the Chinese subsidiary and can refuse any "external instructions" that are not approved by the Chinese legal representative. In addition, employee salaries and bonuses will be paid by China Nexperia, not the Dutch parent company.
As U.S.-China trade tensions escalated, the Dutch government took over Nexperia on September 30 and suspended Zhang Xuezheng, the Chinese-appointed CEO. The Dutch government said the move was to prevent technology transfer to Nexperia's Chinese parent company, Wingtech Technology.
The Chinese government immediately placed Nexperia’s packaging and testing plant in China on the export control list. Since Nexperia has a certain market share in the automotive chip market, its customers include Volkswagen, BMW, Mercedes-Benz and other first-tier European car brands. The controversy has also sparked concerns in the global automotive and electronics industries about possible chip shortages, which will affect production.
Volkswagen and BMW said they are assessing potential supply risks, but European production has not yet been affected.
Anshi pointed out that the current situation was caused by the unauthorized behavior of former CEO Zhang Xuezheng. He has been formally suspended by the court and has no authority to represent Nexperia. The company has notified the Dutch authorities of the relevant actions and emphasized that it remains committed to supporting employees and customers in China, but did not specify the unauthorized actions of the former CEO.
Two people familiar with the matter revealed that although Nexperia's technology is not the most advanced, it is widely used in various products, and its largest production base is located in Hamburg, Germany. However, more than 70% of the chips will eventually be shipped back to China and packaged at the packaging and testing factory in Dongguan, Guangdong.
Nexperia says Chinese unit operating as usual as tensions with the Netherlands run high Further reading: China restricts Nexperia exports, causing automotive supply chain to tremble
