Nexperia parent accuses Dutch unit of plotting supply chain break with China

Wingtech claims its Nexperia subsidiary in Europe is conspiring to build a non-Chinese supply chain and permanently strip Wingtech of control over the chipmaker. Nexperia China, which has declared itself independent, has also demanded that the Dutch side halt overseas expansion, including a planned 300-million-dollar investment in Malaysia, calling it a move to bypass Chinese capacity.

The dispute has escalated sharply since the Dutch government in late September seized governance of Nexperia on economic-security grounds, a move followed by an Amsterdam court decision suspending Wingtech’s control. The Dutch government shelved the intervention last month after talks in Beijing, but the court ruling remains in effect, although Wingtech is filing an appeal, NRC reported last week (link in Dutch).

Despite some signs of the conflict cooling, Nexperia’s supply flows haven’t been fully restored. The firm has publicly appealed to Chinese entities to restore a dialogue, claiming private requests go unanswered. The Chinese unit said this claim is misleading, citing blocked access to IT systems, Reuters reports.

Citing sources, Bits&Chips previously reported that the European arm of Nexperia is mulling expansion of its assembly and test facilities outside China. Both the Malaysian and Philippine plants were constructed with excess factory floor space, which could be utilized to ramp capacity relatively quickly.