Photo: VCG
Nexperia’s Chinese unit issued a statement on Sunday, saying that Nexperia Netherlands’ claim that “local management’s recent failure to comply with agreed contractual payment terms” is entirely fabricated and constitutes malicious defamation against Nexperia China’s management. It stressed that Nexperia Netherlands’ unilateral suspension of supply completely disregards customer interests ,severely violates contractual agreements and commercial cooperation principles, and gravely undermines customer trust, which is “an extremely irresponsible act.”
“At present, Nexperia China has established sufficient inventories of finished goods and work-in-progress, enabling stable and sustained fulfilment of customer orders through year-end and beyond,” the company said via its official WeChat account.
This response came after Dutch chipmaker Nexperia announced in a letter to its customers to suspend supplies of wafers to its Chinese assembly plant, which could exacerbate a supply squeeze that is worrying automakers worldwide, according to Reuters.
The letter, dated October 29 and signed by Nexperia interim CEO Stefan Tilger, said the October 26 suspension that affects its plant in Dongguan, South China’s Guangdong Province, was “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms,” according to the report. Nexperia China pointed out in its Sunday statement that such accusations are “entirely fabricated” and constitute “malicious defamation against Nexperia China’s management.”
To ensure long-term supply resilience, the Chinese unit has proactively initiated multiple contingency plans and are accelerating the qualification of new wafer supply sources, according to its statement.
The Dutch side’s absurd actions reflect a lingering sense of superiority among some European politicians and business elites, their near-hysterical behavior is an attempt to preserve an outdated sense of dominance, Ma Jihua, a veteran tech analyst, told the Global Times on Sunday.
“Cutting itself off from China’s manufacturing and sales network is a move that will prove unsustainable in the long run. Ironically, this episode will only accelerate China’s drive for self-reliance in the semiconductor industry and push domestic firms to strengthen technological reserves and supply chain resilience,” Ma added.
Shortly before this, Nexperia had restricted access to employees’ work accounts and suspended salary payments in China, following the Dutch government’s unjustified intervention in the company’s operations, according to media reports.
Meanwhile in a corporate filing dated October 13, lodged with the Shanghai Stock Exchange, Wingtech, the parent company of Nexperia, confirmed that the Dutch chipmaker was under temporary external management and had been asked to suspend changes to the company’s assets, business or personnel for up to a year.
Commenting on recent concerns over Nexperia, China’s Ministry of Commerce (MOFCOM) said on Saturday that improper intervention by the Dutch government in the company’s internal affairs has disrupted global industrial and supply chains.
As a responsible major country, China fully considers the security and stability of both domestic and global supply chains and welcomes companies facing real difficulties to reach out to the ministry or local commerce authorities, according to MOFCOM. The ministry will take into account their specific circumstances and grant export exemptions where applicable.
A Chinese expert recently slammed the Dutch side’s actions on Nexperia as “tantamount to robbery,” saying such arbitrary administrative interference in a private company’s operations is rare internationally and severely undermines globalization, bilateral trade between China and the Netherlands, and the long-term stability of the world economy.
The management team at Nexperia Netherlands have demonstrated severe dereliction of duty in decision-making, putting personal interests over the company’s overall interests, according to the statement. “This action gravely violates professional ethics and corporate governance requirements. They must bear legal responsibility for the losses inflicted upon the company and its employees,” said the statement Nexperia China released on Sunday.
Nexperia China has not breached any contracts; on the contrary, Nexperia Netherlands currently owes ATGD more than 1 billion yuan ($140 million) in outstanding payments, it said.
The unilateral suspension of supply by Nexperia Netherlands will not alter our commitment to product quality and fulfilling customer promises, the statement said, adding that Nexperia China will continue to maintain timely and transparent communication with our customers and kindly requests your continued trust and support.
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