Wingtecht responds to the open letter that Nexperia published on Thursday, in which the chipmaker calls on the Chinese branch to restore the supply chain. The Nijmegen company says it has tried to make contact via telephone, emails and proposals for meetings to resolve the problems, but that ‘meaningful’ responses were not forthcoming.
Export ban
Earlier this month, outgoing Minister of Economic Affairs Vincent Karremans (VVD) suspended his intervention at Nexperia. He took this measure out of fear that the Chinese parent company would remove parts from Europe. China subsequently banned exports of Nexperia from that country, causing supply problems for car manufacturers.
Nexperia under the magnifying glass again after revelations about the ministry letter: this is how it works
After Karremans’ postponement, Nexperia said it already needed the cooperation of its Chinese subsidiary to solve the chip shortages, but that the Chinese branch had not listened to management in the Netherlands for some time.
Inappropriate intentions
Nexperia in China is now demanding that the Dutch branch refrain from ‘inappropriate’ intentions to replace capacity in China. According to the Chinese branch, Nexperia Netherlands has plans to expand capacity in Malaysia and other countries.
Nexperia warns: chip production in China not yet on track
China has recently largely lifted the export ban. “Despite this, customers in various sectors are still reporting impending production stops. This situation cannot continue,” Nexperia said in the letter. The company urged China’s leadership to “immediately” move toward negotiations to restore the supply chain without delay.
“To avoid having to communicate through public statements and through our customers, we once again emphasize our willingness to engage directly in dialogue,” the letter continues. The company may want to do this through a ‘neutral, professional third party as a mediator to ensure structured negotiations’.