Nexperia has warned customers it can no longer guarantee the quality of chips produced in its Chinese factories, escalating a control battle over the semiconductor firm. The Dutch entity of the company stated it lost control over manufacturing processes in China after the Chinese operation declared it would no longer follow directives from the Netherlands headquarters.
This conflict began on October 1st when the Dutch government forcibly took control of Nexperia, a subsidiary of China's Wingtech. In response, China's commerce ministry issued an export ban on specific finished components from Nexperia. The Chinese operation has since instructed employees to only follow domestic company orders.
The dispute is now directly impacting the automotive industry. Reports suggest that if quality discrepancies exist between chips from different plants, it could lead to production faults, vehicle recalls, and warranty claims, potentially forcing automakers to stop using Nexperia chips from China. This is critical because Nexperia's facility in Dongguan handles approximately 70% of its packaging and contributes to about 50% of its global sales.
Supply shortages are already materializing. The European Automobile Manufacturers' Association (ACEA) has warned of severe disruptions to car manufacturing in Europe, with German media reporting potential production halts for the Volkswagen Golf.
ICgoodFind: This corporate struggle highlights significant vulnerabilities in the global auto chip supply chain, demanding close industry attention.
