Nexperia accused by parent Wingtech and Chinese unit of plotting to move supply chain

Core Viewpoint - Wingtech, the Chinese parent company of Nexperia, has accused its Dutch unit of attempting to create a non-Chinese supply chain and strip it of control, escalating tensions between the two entities [1][2]. Group 1: Company Disputes - Nexperia's Dutch unit has claimed that it has made repeated attempts to engage with its Chinese counterpart, which have been unsuccessful [2]. - The Dutch government seized Nexperia two months ago on economic security grounds, leading to a court ruling that stripped Wingtech of control [2]. - Nexperia's Chinese arm has declared independence from European management, which has halted wafer shipments to its plant in China [4]. Group 2: Supply Chain Implications - Beijing retaliated against Nexperia by halting exports of finished products on October 4, causing disruptions in global automotive supply chains [3]. - The Chinese unit has warned that supply chain disruptions could return if the control issue remains unresolved, indicating that the dispute is more than just a corporate control issue [6]. - Nexperia China has accused the Dutch unit of planning to source 90% of production outside China by mid-2026, which it views as an attempt to engineer a breakup [6]. Group 3: Communication Breakdown - Nexperia's Chinese arm has accused the Dutch unit of stifling communication by deleting email accounts of its employees and terminating their access to IT systems [5]. - Wingtech has stated that negotiations are untenable due to the Dutch unit's avoidance of the issue of legitimate control [5].

Nexperia accused by parent Wingtech and Chinese unit of plotting to move supply chain - Reportify