Nexperia has gone from being unknown to becoming the new focus of tension in the technological war between the West and China. The company, with Chinese capital but based in the Netherlands, has been intervened by the Dutch Government, which alleges national security reasons. And its impact could soon be felt in sectors as sensitive as automobiles and consumer electronics.
The movement is not minor: Nexperia controls an extensive network of factories and assembly centers in Germany, the United Kingdom, the Philippines, Malaysia and China, all important for the global semiconductor chain. Since the Netherlands took over governance of the company at the beginning of the month, a key question has arisen: how far does its control over those international operations really extend?
Different laws, one company: Nexperia, caught between Europe and China
The answer, at least in part, we already have. Nexperia operations in China have recalled that They work “independently” from the Dutch headquarters. A gesture that not only challenges this European authority, but adds a new layer of uncertainty to an industry that continues to suffer the consequences of the chip crisis.
The statement released by Nexperia China on October 17 through its official WeChat channel marks a turning point in the dispute. In the text, signed by all the group’s operating entities in the country, the company reaffirms its autonomy from the headquarters in the Netherlands and remembers that its activity is governed exclusively by Chinese legislation. The document clearly establishes that the legal representative has exclusive authority to make decisions and approve any instructions from abroad:
“Nexperia companies in China are independent companies that operate in accordance with national laws. The legal representative has exclusive authority to make decisions and approve any external instructions. No employee is obliged to follow orders coming from outside without their express consent.”
The Dutch headquarters, for its part, has denied this “independence” and has attributed it to unauthorized information and actions, which adds another chapter to the internal clash.
A ban on exporting their products from China has put European manufacturers on alert, especially the automotive industry, which depends on Nexperia chips for the operation of numerous electronic components. The European Automobile Manufacturers Association (ACEA) warned last week that the situation could cause production stops if supply is not restored in the coming weeks. According to the organization, current stocks would barely cover a few assembly cycles and approving new suppliers would take months, a period incompatible with market demand.
One of Nexperia’s facilities in Guangdong
Nexperia’s weight in the semiconductor chain is best understood by looking at how its production is organized. Although the headquarters and operational management are located in the Netherlands, much of the group’s added value comes from Asia. Its assembly and test plants in China, the Philippines and Malaysia manage enormous production volumes that supply both the Asian market and Europe.
The coming weeks will be marked by the search for a fragile balance between regulators and governments. Nexperia has confirmed that it is in talks with China’s Ministry of Commerce to reverse the export blockade, while the Netherlands retains control of its governance. The question is whether the company will be able to operate normally. without violating either of the two legal frameworks. For now, the signals are mixed: production continues, but under an environment of uncertainty that leaves manufacturers waiting for a quick outcome.
Images | Nexperia
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