German media: The Nexperia dispute affects German companies

Beijing says that Nexperia's supply interruption is entirely the responsibility of the Netherlands. The Dutch side, however, stated that dialogue between the two governments is still ongoing. German automotive supplier Bosch has prepared to shorten employee working hours due to a shortage of chips.

Regarding the controversy surrounding Nexperia, on Tuesday, November 4, the Chinese Ministry of Commerce stated that China had announced on November 1 that it would exempt exports that meet certain conditions and strive to promote Nexperia (China) to resume supply. "But the Dutch side continues to act unilaterally and has not taken any practical measures to solve the problem."

The Chinese Ministry of Commerce said that Nexperia (Netherlands) announced on October 26 that it would stop supplying wafers to Nexperia (China), causing the latter to be unable to produce normally, "for which the Dutch side should bear full responsibility."

Netherlands: Dialogue is still ongoing

A spokesperson from the Dutch Ministry of Economic Affairs told Reuters on Tuesday that dialogue between the two governments is still ongoing. "We are in contact with Chinese authorities and our international partners to achieve a constructive solution for Nexperia and our economy."

Most of Nexperia's chips are produced in Europe, but 70% are packaged in China.

Some of the Chinese state-owned company, Wintech Technology, acquired Nexperia in 2018 for 3.6 billion US dollars.

On September 30 this year, the Dutch government took over Nexperia on grounds of national security. Zhang Xuezhen, the former CEO of Nexperia and founder of Wintech Technology, was suspended from his position.

Previously, the US and EU claimed progress

Last week, after the meeting between the leaders of the US and China, the White House announced that Beijing "will take proper measures to ensure that Nexperia's factories in China resume trade."

This Monday, EU Trade Commissioner Maros Sefcovic stated that negotiations related to Nexperia involving the Netherlands and the Chinese government "have made progress," but did not disclose details.

Bosch Company's Chip Shortage

Meanwhile, German automotive parts supplier Bosch is affected by a shortage of chips. The company's factories in Ansbach and Salzgitter have applied to the local labor office for "short-time work," which means shortening employees' working hours when needed.

A Bosch spokesperson said, "Our expert team is closely exchanging views with Nexperia, one of our suppliers of electronic components. In addition, we are also communicating with affected customers and other suppliers as well as upstream suppliers."

"The current situation is still a big challenge for us," he said. To reduce the impact on production, Bosch is also using other sources of supply.

Sources: DW + Reuters + DPA + AP

Original: www.toutiao.com/article/1847875920711683/

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