FILE PHOTO: Flags fly next to a logo of Nexperia at the facade of its factory amidst a shortage of chip supply caused by a diplomatic standoff between China and Netherlands over the company, in Dongguan, Guangdong province, China, November 7, 2025. REUTERS/Maxim Shemetov/File Photo
| Photo Credit: Maxim Shemetov
(New throughout, adds details and background)
By Kanjyik Ghosh
Nov 27 (Reuters) –
Dutch chipmaker Nexperia, whose supply chain was
broken up when the Dutch government took over the company in
September, urged its Chinese units in an open letter on
Thursday to help restore normal production.
Nexperia’s Dutch unit said in an open letter that it had
made repeated and multiple attempts to restore dialogues but has
failed to receive a response from its Chinese units.
Nexperia makes billions of simple but ubiquitous chips for
cars and other electronics and shortages have threatened
automotive supply chains, leading to production slowdowns and
halts.
It manufactures most of its wafers in Hamburg, Germany, and
then sends them to Dongguan, China to be packaged and sent on to
customers.
The Dutch government, on September 30, took control of
Nexperia, which is headquartered in the Netherlands but owned by
China’s Wingtech, saying the move was necessary to
prevent the company’s former CEO from moving European operations
to China from its current base in the Netherlands.
In response, Beijing halted exports of Nexperia’s finished
products on October 4, a measure it has since partly relaxed.
Separately, Nexperia’s Chinese arm declared itself no
longer subject to control by European management after the
seizure and on October 26, the European side of the company
stopped shipping wafers to it, citing non-payment.
On Wednesday, China pushed for a company-led resolution
following a call between China’s commerce minister Wang Wentao
and EU trade commissioner Maros Sefcovic.
“Nexperia B.V. has made repeated and multiple attempts,
both formal and informal, to re-establish the dialogue with
Nexperia’s entities in China by means of direct outreach via
calls, emails and proposed meetings,” Nexperia’s open letter
stated.
“Regrettably, Nexperia did not receive any meaningful
response,” it added.
(Reporting by Kanjyik Ghosh in Barcelona; Editing by Leslie
Adler and David Gregorio)
Published – November 28, 2025 08:53 am IST
