New Delhi, Jan 15 (IANS) Europe’s legal and political conflict with China over control of chipmaker Nexperia has disrupted cooperation between raised longer-term questions about stability within global supply chains, a report said on Thursday.
The report from Investment Monitor said the conflict between Nexperia’s Holland‑based company and a key manufacturing site in China’s Guangdong halted production at multiple car manufacturing plants.
“As countries jockey for control over different stages of the semiconductor value chain, it’s going to lay out these potential breaking points,” the report cited Georgetown University Center for Security and Emerging Technology senior data research analyst Jacob Feldgoise.
Guangdong facility had produced about 50 billion units annually, roughly half of the company’s output before the dispute.
Semiconductor manufacturer Nexperia is a Dutch subsidiary of Wingtech Technology, a Shanghai-based electronics firm partly owned by the Chinese government.
A Dutch court placed Nexperia under trustee supervision in October, stripping parent Wingtech Technology of ownership rights and suspending founder Zhang Xuezheng as chief executive, Investment Monitor said citing a Bloomberg report.
The Dutch court placed Nexperia under the supervision following allegations of improper technology transfers and resource diversion.
Wingtech appealed before the Dutch Supreme Court denied any wrongdoing and negotiated with trustees but political tensions have persisted, the report said. Some banks withdrew financing to the company, including an unused $800 million credit line, it added.
Both organisations took steps to prepare for future operations independently and the Dutch side committed approximately $300 million to expanding production capacities outside China, aiming for 90 per cent non-Chinese output by mid-2026. Expansion efforts focus on facilities in Malaysia and the Philippines.
“Honda temporarily halted production at multiple plants and Volkswagen sought alternative sourcing options. ZF Friedrichshafen reduced output due to shortages of critical components,” the report said.
Major customer Robert Bosch reportedly took measures to maintain supply by transporting wafers from Europe to China, which turned out costly and unsustainable, it added.
European governments plan for subsidies for semiconductor backend production outside China, while Chinese carmakers are pressuring domestic authorities to secure reliable supplies, it noted.
–IANS
aar/
