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Semiconductor industry

Dutch Chipmaker Nexperia Denies Unpaid Salaries for Chinese Employees, Contradicting Earlier Statement

Strategic Insights

— 1 min read

A dispute has erupted between Nexperia, a Dutch chipmaker, and its Chinese unit after the company denied that employees in China have not received their salaries. Nexperia stated that it is aware of a message circulating among its employees falsely claiming that the company and the Dutch government have abandoned the Chinese market. The company clarified that any assertions about unpaid salaries are "factually incorrect and misleading." This statement comes after the Dutch government took control of Nexperia on September 30, citing concerns about possible technology transfer to the company's Chinese parent, Wingtech.

Key Takeaways:

  • Nexperia's Chinese unit claimed to comply with Chinese law and have the right to operate independently, stating that employees continue working under its instructions and may reject "external instructions" not approved by its Chinese legal representative.
  • The notice posted on Nexperia China's official WeChat account said that salaries and bonuses will be paid by Nexperia China, not Nexperia Netherlands.
  • The dispute stems from actions taken by the Dutch government, which removed Nexperia's Chinese CEO, Zhang Xuezheng, citing concerns about possible technology transfer to Wingtech.
  • Nexperia manufactures chips for automakers and consumer electronics, with its largest manufacturing site in Hamburg, Germany, and more than 70% of its chips shipped to China for packaging in Dongguan, a manufacturing hub in Guangdong province.
  • America exerted pressure on the Dutch government to take over Nexperia, with American officials warning that Nexperia's CEO, Zhang Xuezheng, would likely need to be replaced for the company to be removed from the US "entity list."
  • The Dutch government cited "serious governance shortcomings" as the reason for taking control of Nexperia, although court documents revealed that American officials played a key role in the decision.

Statistics:

  • September 30: The Dutch government took control of Nexperia and removed its Chinese CEO, Zhang Xuezheng.
  • October 4: China's commerce ministry blocked Nexperia from exporting chips.
  • More than 70% of Nexperia's chips are shipped to China to be packaged in Dongguan, a manufacturing hub in Guangdong province.
  • The US "entity list" imposes strict export restrictions on companies suspected of engaging in activities contrary to US national security or foreign policy interests.

Sources:

  • Reuters - No date mentioned
  • Times of Israel ("The Times of Israel") - timesofisrael.com (note: for reprint rights)

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