Nexperia microchips. The confrontation between Europe and China
12 February 13:45
A Dutch court has ordered an investigation into the mismanagement of chipmaker Nexperia, which has dealt a blow to its Chinese parent company Wingtech, according to "Komersant Ukrainian", citing Reuters.
“A Dutch court has ordered an investigation into the ineffective management of chip manufacturer Nexperia, which has dealt a blow to its Chinese parent company Wingtech,”
– Reuters
The battle for control of Nexperia has gone beyond the courtrooms and reached Brussels and Beijing, becoming one of the most prominent examples of modern corporate confrontations between the EU and China, which have affected global microchip supply chains for car manufacturing.
The rift between the European wafer manufacturing division and its Chinese parent company, as well as its Chinese packaging subsidiary, remains unresolved.
“The situation at Nexperia primarily requires stability so that Nexperia can restore its internal relations, production processes, and customer deliveries,” said the Amsterdam Enterprise Chamber.
During the investigation, which is expected to last several months, the emergency measures introduced in October will remain in force: the removal of Wingtech’s former CEO and founder Zhang Xuezhen and the temporary transfer of shareholder voting rights to an administrator appointed by the Dutch court.
Wingtech currently has limited chances of regaining control of Nexperia before the completion of the expansion of packaging capacity in Malaysia, which should ensure the supply of non-Chinese microchips to customers.
Wingtech said it regrets the court’s decision but promises to continue to seek the restoration of its full shareholder rights by all legal means available.
In the context of current events, the situation with Nexperia highlights the sensitivity of global microchip supply chains and the importance of stable management to maintain market and customer confidence.
“We hope to start a constructive and meaningful dialogue with the Chinese authorities as soon as possible,” said a Nexperia spokesperson.
On September 30, Dutch authorities took Nexperia under state control due to concerns about technology leakage. China imposed export restrictions. Later in October, Nexperia’s Chinese division resumed supplying semiconductors to distributors in China. On October 31, Reuters reported that Nexperia had suspended shipments of wafers, which are used as the basis for chip production, to its Chinese factory.
Due to the political conflict between the Netherlands and China over Nexperia, a critical shortage of microchips has arisen in the European automotive industry.
