ISTANBUL
Dutch chip firm Nexperia stated late Thursday that it has made numerous attempts to re-establish dialogue with Nexperia’s entities in China but has not received any "meaningful" response.
In an open letter, Nexperia said it continues to seek a constructive collaboration with Nexperia’s entities in China and has been requesting an open dialogue to find a path forward to restoring the regular supply of goods.
"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, various offers to collaborate on mutually beneficial solutions and even formal correspondence to demand performance of rights," it said.
Nexperia urged the Chinese entities to respond to its outreaches and engage "constructively" and with a view to restoring the supply chain, as this is in the interest of all parties involved, including its customers.
It stated that since the efforts had been unsuccessful, it was necessary to issue a public statement to emphasize the urgency.
"Nexperia remains fully committed to transparency, business continuity, and the interests of its customers, suppliers, employees, and stakeholders worldwide," it added.
Nexperia's China dispute, supply chain issues
Beijing imposed an export ban on chips produced by the company’s factories in China, following the Netherlands’ move on Sept. 30 to take temporary control of Nexperia under a 1952 law that allows the Dutch government to block or reverse company decisions that could endanger national or European production.
This decision was justified by Wingtech in the process of transferring its technology and production facilities to China.
On Nov. 19, the Dutch government announced that it had suspended "state intervention" against chipmaker Nexperia after constructive talks with China. However, Nexperia's supply chain has been disrupted since the Dutch government's intervention.
In a memo sent to customers on Oct. 17, Nexperia's Chinese unit stated that the company's European headquarters had cut off access to its employees' computers in China and suspended salary payments.
With the Beijing government halting exports from the company's Chinese unit, many manufacturers, particularly automotive suppliers that Nexperia supplies chips to, have faced supply issues.
Nexperia manufactures most of its products in Hamburg, Germany, and ships them to China for distribution.
Owned by China's Wingtech, the company produces billions of simple but widely used chips for cars and other electronic devices. Shortages of these components have recently threatened automakers' supply chains, leading to production delays.