A logo of Nexperia Photo: VCG

A spokesperson of China's Ministry of Commerce (MOFCOM) confirmed on Monday that Wingtech Technology, the Chinese parent company of Netherlands-based chipmaker Nexperia, and Nexperia BV held their first round of talks last week, urging the Dutch side to withdraw the administrative order, create favorable conditions for corporate consultations, and restore chip supplies to both Chinese and foreign automobile makers.

The spokesperson made the comments when asked by media regarding some recent media reports that wafer inventories at Nexperia's Dongguan plant are at relatively low levels, causing chip shortages for both Chinese and foreign automobile manufacturers, and about the progress of consultations between Wingtech Technology and Nexperia BV after holding their first round of talks last week. 

It is understood that the heads of Wingtech Technology and Nexperia BV held a first round of consultations last week, during which they explained and clarified issues of mutual concern and agreed to maintain further communication, the spokesperson said.

The Chinese side called on the relevant companies to engage in consultations on issues related to control rights and the restoration of the supply chain, and to take practical steps to restore the global semiconductor production and supply chain, said the spokesperson.

Acting in a responsible manner toward the global semiconductor production and supply chain, the Chinese government has taken concrete measures to grant exemptions for the export of compliant chips intended for civilian use, thereby creating the necessary conditions for keeping the semiconductor supply chain stable and unimpeded, the spokesperson said, noting that at the same time, the Chinese side has urged the companies concerned to resolve their internal disputes through consultations as soon as possible.

The MOFCOM reiterated that the root cause of the Nexperia issue lies in improper administrative intervention by the Dutch government in corporate operations.

As a Chinese saying goes, "To untie the bell, you need the person who tied the bell." To fundamentally eliminate concerns among relevant companies worldwide about chip shortages, the Dutch government should immediately rescind the administrative order and urge former senior executives of Nexperia BV to withdraw the lawsuit from the enterprise court, said the ministry spokesperson.

The Dutch government should also create favorable conditions for corporate consultations and restore chip supplies as soon as possible to both Chinese and foreign automobile manufacturers, including those in China, thereby fulfilling the Dutch side's due responsibility in safeguarding the security and stability of the global semiconductor production and supply chain, said the spokesperson.

Global Times