Beijing: Dutch semiconductor manufacturer Nexperia’s Chinese subsidiary has resumed supplying chips to local distributors, ending a temporary halt triggered by Beijing’s export restrictions following a complex ownership dispute. According to sources familiar with the matter, the resumption is limited to domestic trade, with all transactions now required to be settled in Chinese yuan, diverging from previous practices that used foreign currencies such as the U.S. dollar.
The move signals Nexperia’s effort to stabilize chip supply within China and operate with greater independence from its Dutch parent company. Distributors have also been instructed to conduct all customer transactions in yuan, aiming to streamline domestic operations and mitigate risks stemming from international tensions.
This development comes after a series of contentious actions involving both the Dutch and Chinese governments. On September 30, the Dutch government seized control of Nexperia and removed its Chinese CEO, Zhang Xuezheng, citing concerns that proprietary technology could be appropriated by Nexperia’s Chinese parent, Wingtech Technology. In response, China’s commerce ministry blocked exports from Nexperia’s Chinese operations on October 4, prompting a suspension of shipments from its Dongguan factory.
Amid these disruptions, Nexperia is actively seeking alternative packaging partners outside China, while simultaneously warning Chinese customers that it cannot fully guarantee the quality of chips sourced from its local subsidiary. Despite these warnings, the company has not advised against purchasing from the Chinese unit, reflecting the delicate balance it must maintain between business continuity and risk management.
The ongoing dispute has raised global supply chain concerns, particularly in the automotive sector where Nexperia’s chips are extensively used. The German economy ministry has scheduled discussions with automakers and suppliers to address potential disruptions. Meanwhile, Dutch and Chinese officials have reportedly engaged in talks, although no immediate resolution has been achieved.
As the situation unfolds, industry stakeholders are closely monitoring the implications for global semiconductor supply, highlighting the intricate interplay of technology, geopolitics, and trade in today’s interconnected market.