The letter indicates that the company implemented the suspension on October 26. Nexperia reportedly made this decision because the management of the Chinese organization was not adhering to contractual obligations.
China and the Netherlands are embroiled in a political conflict concerning Nexperia, which is headquartered in Nijmegen. The Dutch government has placed the company under guardianship to prevent the leakage of technology and intellectual property from Nexperia’s European division to China.
Beijing contends that the Netherlands has intervened unjustly and responded by imposing an export ban on Nexperia’s Chinese branch. This ban affects not only exports to the Netherlands but also to countries with significant automotive production, such as Germany, France, and Japan.
Nexperia is a relatively small chip manufacturer, yet it plays a crucial role in supplying the automotive industry. The majority of its products are processed in China before being sold to distributors.
Nexperia and its Chinese parent company, Wingtech, have not yet responded to the latest developments, according to Reuters. Previously, Wingtech denied the allegations made by the Dutch government and is seeking to have CEO Zhang Xuezheng regain control.
