A logo of Nexperia Photo: VCG

Nexperia China is a Chinese company with operations rooted in China and vision globally, and the company must comply with Chinese laws and regulations, the Chinese unit of Dutch chipmaker Nexperia said in a statement on Sunday, stressing that Nexperia China is fully capable, responsible and committed to safeguarding the rights and interests of all employees and will persist in fostering a secure working environment for everyone.

The company's statement came after media reports claimed that Nexperia has withheld access to work accounts and halted salaries for its employees in China, following the Dutch government's unreasonable interventions in Dutch chipmaker Nexperia.

The Dutch Minister of Economic Affairs invoked the Goods Availability Act on September 30, due to serious governance shortcomings at semiconductor manufacturer Nexperia, according to a statement on the Dutch government website on October 12.

The Goods Availability Act allows The Hague to intervene in private companies to ensure the availability of critical goods in preparation for emergency situations.

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.

Wingtech, founded in 2006, acquired a controlling stake in Nexperia in the late 2010s.

China's Ministry of Commerce on Thursday slammed the Netherlands for meddling the operations of Nexperia, saying that the Dutch side has violated market principles.

"China firmly opposes the Dutch side's overstretching the national security concept and direct intervention in the company's internal affairs," said He Yongqian, spokesperson for the ministry, adding that China will take necessary measures to resolutely safeguard the lawful rights and interests of Chinese enterprises.

"With Wingtech holding 100 percent stakes in Nexperia, the Dutch chipmaker should make strategic decisions under the guidance of the Chinese company. The Dutch government's taking control of Nexperia is as shocking as robbery," Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, told the Global Times on Sunday.

The Dutch government's random intervention in a private company's operations through administrative measures is rare internationally, and has severe negative impacts on globalizations, bilateral economic and trade cooperation between the two countries, as well the long-term development of world economy, Xiang said.

In accordance with Chinese laws including the Company Law, a company is a corporate legal person, and no individual or entity is allowed to abuse their rights to harm the interests of the company or its shareholders, the Sunday statement read

At all times, Nexperia China is a Chinese company that operates and makes decisions independently. The legal representative holds the ultimate authority to represent the company's will and is fully responsible for all operational decisions. Directors, supervisors and senior executives bear a duty of loyalty and due diligence toward the company, according to the statement.

In accordance with Chinese laws guiding labor affairs, all employees of Nexperia China are obligated to comply with the company's labor discipline and fulfill work requirements as required. Therefore, all employees continue to work under the company's instructions, the statement said.

In addition, Nexperia has withheld access to work accounts and halted salaries for its employees in China, according to local news reports citing a letter from the Chinese unit of the Dutch chipmaker, South China Morning Post reported on Saturday.

For any external instructions (even transmitted via Outlook, Teams, etc.) that are not approved by its Chinese legal representative, company employees have the right to reject these instructions, without violating labor discipline or legal provisions, the statement read.

Currently, the company's business operations are proceeding normally, with all tasks advancing in an orderly manner, according to the statement.

The board of directors and management of the company remain fully committed to ensuring normal operations and will not permit any external forces to disrupt the company's operations or harm its employees' interests. All employees of Nexperia China have set up labor relations with the company, and their salaries, bonuses and other benefits will continue to be paid out by Nexperia China, not Nexperia Netherlands, the statement said.

Nexperia China is fully capable, responsible and committed to safeguarding the rights and interests of all employees and will persist in fostering a secure working environment for everyone, read the statement.

After Nexperia China's statement, some netizens on Chinese social media platforms expressed support for the firm, with some voicing backing for the Chinese unit's decision to resist "reckless orders" from the Dutch headquarters in the name of supply chain security.

On major Chinese online platforms such as RedNote and X-like Sina Weibo, a growing number of users have voiced support for Nexperia China's move to use legal means to defend the rights of its China-based employees, viewing it as a reassuring step against what they call "robbery-like acts" by the Netherlands.