Dutch PM: Nexperia measures target CEO mismanagement, not China

The measures the Netherlands has taken against chipmaker Nexperia are “about the CEO’s mismanagement, and are not measures against China,” said caretaker Prime Minister Dick Schoof ahead of the EU summit in Brussels.

Last week, caretaker Minister of Economic Affairs Vincent Karremans prevented the transfer of technology from Nexperia’s European facility in Nijmegen to China. After CEO Zhang Xuezheng of the Chinese parent company Wingtech was dismissed, China halted exports to the European plant.

The suspension means the Nijmegen factory can no longer guarantee chip deliveries to European automakers. Schoof said the dispute “reveals the vulnerability of Europe and its companies,” adding, “However, it was a case of mismanagement, and action had to be taken.”

Schoof emphasized the importance of “resolving the situation as quickly as possible.” Karremans has held discussions with ministers from both Europe and China about the dispute.

According to sources, Nexperia’s Chinese subsidiary has resumed semiconductor deliveries to local distributors. The company had previously suspended all shipments when Beijing blocked exports amid an ownership dispute.

Under the limited domestic restart, all sales to distributors will now be made in Chinese yuan. Previously, transactions had been conducted exclusively in foreign currencies such as the U.S. dollar, the sources said.

Japanese auto parts makers have been warned that a Dutch chip producer may no longer be able to ensure deliveries, the Japan Automobile Manufacturers Association (JAMA) reported. The association did not name the company, though it is possibly Nexperia.

JAMA noted that the chip is a critical component and that the supply disruptions will have a “serious impact” on global production by Japanese automakers. Members include Toyota, Honda, and Nissan. The association’s chairman said members are collaborating with auto parts manufacturers to address the issue.