Although the move will give some comfort to customers that the clash over Nexperia between China and the Netherlands is easing, supply chain issues have not yet been resolved.
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DUTCH POSITIVE ABOUT MEASURES TAKEN BY CHINA
The Dutch government said intervention was needed to prevent Nexperia’s former CEO from moving its operations to China. Beijing responded by halting exports of Nexperia’s finished products on October 4, a measure it has since partly relaxed.
Dutch Economy Minister Vincent Karremans said in a statement on Wednesday that the decision was a gesture of goodwill, adding that talks will continue.
“We are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world,” he said in a statement.
Meanwhile, European Union trade chief Maros Sefcovic welcomed the move, saying it would help stabilize supply chains.
Nexperia manufactures most of its wafers in Hamburg, Germany, and then sends them to Dongguan, China to be packaged and sent on to customers.
STALEMATE CONTINUES TO THREATEN SUPPLIES
After the Dutch state intervention, Nexperia’s Chinese arm declared itself no longer subject to control by European management and on Oct. 26, the European side of the company stopped shipping wafers to it, citing non-payment.
That stalemate continues to threaten supplies, although the Chinese side is now selling down stockpiles of chips it has previously processed, offering temporary relief to customers. Nexperia said it was preparing a reaction.
Separately, a Dutch court in October ordered the removal of ex-Nexperia CEO and Wingtech founder Zhang Xuezheng, citing alleged mismanagement.
A spokesperson for Wingtech, which oversees Nexperia’s Chinese operations, said it “strongly rejects these accusations” and the Dutch government should end participation in the case, which was brought by the company’s European managers.
“The ministry should now file a letter with the (court), explicitly withdrawing its support for the proceedings,” the spokesperson added.
The next step in the legal process will be hearings on a formal investigation into mismanagement, a spokesperson for Amsterdam’s Enterprise Court said.
No date has been set.
Reporting by Toby Sterling, Rachel More, and Bart Meijer; Editing by Jane Merriman and Alexander Smith
Our Standards: The Thomson Reuters Trust Principles.
