(Bloomberg) — Nexperia warned that customers across industries are facing impending production halts, while calling on its Chinese unit to take concrete steps to re-establish dialog.
The Dutch chipmaker, which has lost the cooperation of its Chinese subsidiary since the Netherlands government took action to gain influence over decision making, said it welcomed efforts by Chinese authorities to facilitate the resumption of exports but its customers were “still reporting imminent production stoppages.”
“This situation cannot persist,” Nexperia wrote in an open letter to Nexperia’s entities in China on Thursday. The company designs and makes essential semiconductors for the automotive and consumer electronics sectors. Carmakers from Asia to Europe have raised alarm about disruption of its output.
The Dutch government last week suspended an order that gave it powers to block or revise decisions at Nijmegen-based Nexperia. Dutch Economic Affairs Minister Vincent Karremans had called it a “show of goodwill,” noting that discussions with Chinese authorities were continuing.
Nexperia said in its letter that it had made repeated attempts to directly communicate with its subsidiary through calls, emails, proposed meetings and even “formal correspondence to demand performance of rights,” but did not receive “any meaningful response.”
The Dutch company also pushed its Chinese unit to engage in talks either through email or a “neutral, professional third-party mediator” to restore predictable supply flows.
Wingtech Technology Co., the chipmaker’s Chinese owner, did not immediately respond to an email requesting comment. It has asked for the restoration of its full control and shareholder rights over Nexperia in the Netherlands.
Earlier on Thursday, the Chinese government urged the Netherlands to take concrete actions to resolve concerns around Nexperia and to bring back stability to the global supply chain.
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