Categories: Business

Dutch chipmaker Nexperia urges Chinese units to help restore supply chain

By Kanjyik Ghosh (Reuters) -Dutch chipmaker Nexperia, whose supply chain was broken up when the Dutch government took over the company in September,  urged its Chinese units in an open letter on Thursday to help restore normal production. Nexperia's Dutch unit said in an open letter that it had made repeated and multiple attempts to restore dialogues but has failed to receive a response from its Chinese units. Nexperia makes billions of simple but ubiquitous chips for cars and other electronics and shortages have threatened automotive supply chains, leading to production slowdowns and halts. It manufactures most of its wafers in Hamburg, Germany, and then sends them to Dongguan, China to be packaged and sent on to customers. The Dutch government, on September 30, took control of Nexperia, which is headquartered in the Netherlands but owned by China's Wingtech , saying the move was necessary to prevent the company's former CEO from moving European operations to China from its current base in the Netherlands. In response, Beijing halted exports of Nexperia's finished products on October 4, a measure it has since partly relaxed. Separately, Nexperia's Chinese arm declared itself no longer subject to control by European management after the seizure and on October 26, the European side of the company stopped shipping wafers to it, citing non-payment. On Wednesday, China pushed for a company-led resolution following a call between China's commerce minister Wang Wentao and EU trade commissioner Maros Sefcovic. "Nexperia B.V. has made repeated and multiple attempts, both formal and informal, to re-establish the dialogue with Nexperia’s entities in China by means of direct outreach via calls, emails and proposed meetings," Nexperia's open letter stated. "Regrettably, Nexperia did not receive any meaningful response," it added. (Reporting by Kanjyik Ghosh in Barcelona; Editing by Leslie Adler and David Gregorio)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

Indianews Syndication

Recent Posts

UPDATE 2-UK Green Party declares Zionism is racism, angering Israel

(Adds further Israeli response in paragraphs 4-5, detail on antisemitism and Israel-Palestine conflict in paragraphs…

3 minutes ago

Replenishing crude and fuel stocks could take two years, Saudi Aramco CEO says

LONDON, Oct 5 (Reuters) - The squeeze on crude oil and refined fuels is set…

4 minutes ago

Polish regulator suspects Google abused dominant position in publisher payment talks

GDANSK, Poland, Oct 5 (Reuters) - Poland's antitrust watchdog said on Monday it suspected Alphabet's…

6 minutes ago

Romania sells 532.0 million lei of July 2028 bonds

Oct 5 (Reuters) - Romania sold more than planned 532.0 million lei ($111.89 million) worth…

10 minutes ago

RPT-ROMANIAN NAVAL AUTHORITY SAYS ROYAD MAMMADOV SHIP CAPTAIN IS INJURED, 13 CREW MEMBERS MISSING

RPT-ROMANIAN NAVAL AUTHORITY SAYS ROYAD MAMMADOV SHIP CAPTAIN IS INJURED, 13 CREW MEMBERS MISSING (The…

14 minutes ago

Brazil markets set to rally as Bolsonaro leads in first round vote

By Oliver Griffin, Luciana Magalhaes and Marcela Ayres SAO PAULO/BRASILIA, Oct 5 (Reuters) - Brazilian…

15 minutes ago