Nexperia says Chinese unit operating as usual as tensions with the Netherlands run high

Core Viewpoint - Nexperia's China unit asserts its independence and compliance with Chinese laws amid escalating trade tensions between the U.S. and China, following the Dutch government's intervention in the company [1][2]. Company Operations - Nexperia's China unit confirmed that all employees are operating under its directives and have the authority to reject external instructions not approved by its Chinese legal representative [3]. - Salaries and bonuses for employees in Nexperia China will continue to be disbursed by the China unit rather than Nexperia Netherlands [3]. Industry Impact - The ongoing tensions have raised concerns in the global automotive and electronics sectors regarding potential chip shortages that could disrupt production [4]. - Nexperia produces chips that, while not highly sophisticated, are required in large volumes, with over 70% of its chips being shipped back to China for packaging in Dongguan, Guangdong province [4]. - Major automotive companies like Volkswagen and BMW are actively assessing potential supply risks, although they report that production in Europe has not yet been affected [5].