BEIJING, March 7 (GeokHub) — China’s commerce ministry warned on Saturday that tensions involving semiconductor firm Nexperia could trigger another global chip supply disruption, as a dispute between the company’s Dutch headquarters and its China-based operations intensifies.
The warning highlights growing concerns that friction surrounding the chipmaker could again affect industries heavily dependent on semiconductors, particularly the global automotive sector.
Production across the car industry was disrupted late last year when Beijing introduced export restrictions on semiconductors linked to Nexperia following a decision by authorities in the Netherlands to remove the company from the control of its Chinese parent firm, Wingtech.
Nexperia’s chips are widely used in vehicle electronics, making them a critical component for automakers worldwide.
Although the shortage eased after diplomatic talks between governments, tensions between the company’s Dutch leadership and its Chinese subsidiary have continued to worsen.
Corporate dispute deepens
The conflict centres on control of the company. Nexperia’s headquarters in the Netherlands supports the removal of Wingtech’s ownership stake, while the Chinese subsidiary has called for control to be restored.
China’s commerce ministry issued its warning shortly after the company’s packaging unit in China accused its Dutch parent of disabling internal accounts used by employees in the country.
According to the ministry, the move has created new obstacles for negotiations and disrupted the company’s normal business operations.
Officials said the situation could potentially destabilise global semiconductor production again if it is not resolved.
Netherlands entity disputes claims
Nexperia’s Dutch leadership acknowledged taking action related to internal systems but rejected claims that the move disrupted production at its assembly and testing facility in Guangdong province.
The company’s China-based subsidiary declared independence from the Dutch headquarters after the removal of Wingtech’s control last year, further deepening the rift between the two sides.
Since then, both entities have accused each other of negotiating in bad faith.
The Dutch headquarters has also suspended wafer shipments to the Guangdong facility, raising concerns that the dispute could eventually affect production.
