German media: Nexperia China accuses its Dutch headquarters of owing 1 billion yuan in payments

The Chinese subsidiary of Dutch semiconductor manufacturer Nexperia accused the headquarters of "extremely irresponsible" actions by suspending wafer supply, stating that it had not breached the contract and that the parent company owed 1 billion yuan in payments. With the new agreement between China and the United States, the Chinese Ministry of Commerce said it would consider granting exemptions for the export of eligible Nexperia products. The German government expressed cautious optimism about the prospects of easing the situation.

The Chinese subsidiary of Dutch chipmaker Nexperia stated on Sunday, November 2, that it has established "sufficient finished goods and work-in-process inventory," and that its supply chain remains safe and stable after the parent company stopped wafer supply, which is sufficient to meet order demands through the end of the year and beyond. The company has also begun seeking new wafer suppliers.

Reuters reported on Friday that a letter signed by Nexperia's interim CEO Stefan Tilger on October 29 stated that the supply of wafers to the packaging and testing factory (ATGD) located in Dongguan, China, was suspended starting October 26, citing "the local management's failure to fulfill its payment obligations."

"We cannot resume wafer deliveries as long as the contractual obligations are not fully fulfilled," the letter stated. Nexperia is currently seeking alternatives to ensure customers receive their chips.

In a statement released on Sunday, Nexperia's Chinese subsidiary stated that the headquarters' decision to suspend supplies was "unilateral" and "extremely irresponsible." The statement also added that the claims made by the Dutch parent company regarding contract payments were "misleading and highly deceptive," saying "Nexperia China did not breach the contract; on the contrary, the Dutch Nexperia currently owes ATGD 1 billion yuan in payments."

Penetration rules trigger crisis at Nexperia

At the end of September, the United States issued an export control penetration rule, imposing equal export controls on subsidiaries holding more than 50% of the shares of entities on the entity list.

On October 12, the Dutch government announced that due to concerns that key technologies could be transferred to the Chinese parent company Wingtech, it had taken control of and assumed responsibility for Nexperia on September 30.

Two days later, Nexperia stated publicly that "the Chinese Ministry of Commerce issued an export control notice prohibiting Nexperia China and its subcontractors from exporting specific finished components and subcomponents produced in China."

Nexperia is a major global semiconductor supplier, with its products widely used in electronic control units of automotive electronics systems and other fields.

The German Association of the Automotive Industry stated on Thursday that semiconductor shortages "could lead to severe production restrictions in the near term, or even shutdowns."

A glimmer of hope?

On October 30, the China-US economic and trade team reached a consensus during the Kuala Lumpur negotiations, including "the U.S. will pause the implementation of its September 29 export control penetration rule for 50% for one year. China will pause the implementation of related export control measures published on October 9 for one year and will study detailed implementation plans."

Two days later, on November 1, the Chinese Ministry of Commerce released a statement saying it would fully consider the safety and stability of domestic and international industrial and supply chains, and take into account the actual situations of enterprises, to grant exemptions for the export of eligible Nexperia products.

This statement was published on the official website of the Chinese Ministry of Commerce in the form of "Q&A with reporters." The statement emphasized "welcoming companies encountering actual difficulties to promptly contact the Ministry of Commerce or local commerce authorities," and also reiterated China's repeated position: "Improper intervention by the Dutch government in corporate internal affairs has led to the current chaos in the global supply chain."

New statements from the Netherlands

Nexperia in the Netherlands stated on Sunday that it welcomed recent statements from the Chinese and American governments aimed at removing obstacles to the export of its chips. However, the company refused to comment on the statement by its Chinese subsidiary announcing the acceleration of the independent process.

Nexperia said its current focus is ensuring a stable supply for its customers. The Dutch government also stated that it continues to engage with the Chinese government, other governments, and the industry on Nexperia's "future development direction."

Germany expresses optimism about resolving the dispute

The German Federal Ministry for Economic Affairs and Climate Action responded to a query from Deutsche Welle in Berlin, stating, "The latest reports from China are preliminary positive signs of easing the situation."

The ministry said, "The German government is closely monitoring the situation. We attach great importance to the situation of the affected companies and are conducting consultations with these companies and our Dutch and European partners in various forms on this matter."

However, the ministry also emphasized that a final assessment is not yet possible.

Sources: DW

Original: www.toutiao.com/article/1847677035360256/

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