THE HAGUE, Netherlands (AP) — Lawyers for Dutch-based semiconductor maker Nexperia and its Chinese owners faced off in an Amsterdam courtroom Wednesday in a corporate mismanagement case that has sent shock waves through the global auto manufacturing industry. The hearing at the enterprise chamber of the Amsterdam Court of Appeal was called to decide if the judges should launch an investigation into alleged mismanagement at Nexperia. No immediate decision was expected. The power struggle at Nexperia emer ...

Core Viewpoint - Nexperia, a Chinese-owned Dutch chipmaker, is facing supply chain disruptions due to a standoff between its European operations and its Chinese packaging plant, prompting customers to seek temporary workarounds to alleviate chip shortages in the automotive market [1][2]. Group 1: Supply Chain Issues - A workaround is being developed by customers to bypass the conflict between Nexperia's European unit and its Chinese packaging facility, which is not a permanent solution and may not be feasible for smaller clients [2][3]. - The standoff was initiated by the Dutch government's seizure of Nexperia over concerns regarding technology transfer, leading to halted shipments of wafers from Europe to China [2][3][7]. Group 2: Impact on Automotive Market - The scarcity of Nexperia chips has negatively impacted the production of cars and parts, affecting major automakers and suppliers such as Volkswagen, Hella, Bosch, Aumovio, and Honda [2][4]. - The Chinese government has provided temporary relief by relaxing export controls on chips produced at the Dongguan plant, which may help alleviate some pressure on car manufacturers [5]. Group 3: Workaround Details - The workaround involves clients purchasing silicon wafers directly from Nexperia's factory in Hamburg and then transporting them to China for final packaging at the Dongguan plant [3][6]. - This approach treats Nexperia as two separate entities for production and packaging, addressing quality concerns while ensuring that both sides are compensated for their work [6]. Group 4: Current Operations - Nexperia halted wafer shipments to its Chinese subsidiary on October 26 due to nonpayment, and the Chinese arm is currently depleting its stockpiles of finished products [7]. - There are ongoing negotiations among various companies to secure exclusive production by sourcing wafers from Nexperia Europe for their own needs [7].

Core Viewpoint - The global chips supply crisis may lead to some automakers in Brazil halting operations within two to three weeks if no solution is found, prompting the Brazilian government to engage with Chinese authorities for resolution [1][3]. Group 1: Impact on Automakers - Some automakers in Brazil could be affected by the ongoing global chip supply crisis, although specific companies have not been identified [2]. - The potential shutdown of operations is linked to a standoff between China and the Netherlands regarding the chipmaker Nexperia, which has implications for the automotive sector [2][4]. Group 2: Government Response - Brazil's Vice President and Minister of Development, Industry, Trade and Services, Geraldo Alckmin, is actively involved in discussions to address the chip supply issue, having contacted both the Brazilian ambassador to China and the Chinese ambassador to Brazil [5]. - The local private sector is urging for dialogue between Brazilian and Chinese authorities to mitigate the impact of the chip supply crisis [5].