Dutch chipmaker Nexperia's Chinese unit resumes supply: One condition that may have ‘solved’ matter

The Chinese subsidiary of Dutch chipmaker Nexperia has reportedly resumed supplying semiconductors to local distributors, ending a halt in shipments which was triggered by a recent ownership dispute and a Chinese export ban.

However, the normalcy in operations comes with a major condition that signals a move toward greater autonomy for the Chinese unit, the report added.According to a report by news agency Reuters, the temporary halt on shipments – imposed after Beijing blocked Nexperia from exporting chips on October 4 – has now partially lifted for domestic trade. The company reportedly said that all domestic sales must now be settled exclusively in Chinese yuan.

Previously, transactions were conducted using foreign currencies, such as the US dollar.

Payments in Yuan and growing independence

Citing sources briefed on the matter, the news agency said that the requirement for yuan settlement—confined only to domestic sales—is intended to help the Chinese subsidiary stabilise local supply and operate more independently from its Dutch parent. The unit has reportedly instructed its distributors to also conduct subsequent transactions with their customers only in yuan.

This development follows the Dutch government seizing control of Nexperia on September 30 and removing its Chinese CEO, Zhang Xuezheng. The move was made over concerns that Nexperia's technology could be misappropriated by its Chinese parent company, Wingtech Technology.The rift is showing few signs of a quick resolution, the report said, adding that Nexperia, now under Dutch government control, is seeking alternative packaging partners outside China.

Furthermore, Nexperia has issued a warning to customers in China that it cannot guarantee the quality of products sourced from its Chinese subsidiary. A Nexperia spokesperson said the company had informed customers of potential risks but stopped short of advising them not to purchase the chips.In a strongly worded response on its WeChat account, the Chinese unit confirmed it was operating independently and that its “manufacturing and business activities are proceeding in an orderly manner.”