JAKARTA Nexperia BV, a central-based semiconductor company in the Netherlands that plays an important role in the global chip supply chain, welcomes the decision to lift the blockade of their chip shipments by the United States and China governments. This move is expected to bring fresh air to the world's automotive industry which was shaken by the scarcity of chips.
It is known that the Dutch government has taken control of Nexperia since last October, where since 2019 it is owned by Chinese company Wingtech. This move prompted Beijing to block Nexperia products from leaving China, especially since the company has a large production facility in China by producing around 50 billion chips per year.
As a large-capacity basic chipmaker, Nexperia holds vital positions in various industrial sectors, ranging from automotive, medical devices to defense. However, the seizure of control over the company sparked major concerns in Europe and caused significant disruption to the supply of these important components.
In an official statement released from Amsterdam on Sunday, November 2, as quoted by Reuters, Nexperia emphasized that their current main focus is maintaining supply stability for all its global customers. Even so, the company is reluctant to respond to a statement by its subsidiary in China signaling plans to accelerate its operational independence.
Meanwhile, the Dutch government announced that it is still continuing dialogue with the Chinese government and industry stakeholders in order to find a constructive path for the future of Nexperia.
SEE ALSO:
According to a Financial Times report, the Nexperia production chip packaged in China is widely used from 49 percent by European automotive companies, 86 percent in the medical device sector, 95 percent in the engineering sector, and almost all defense industries on the continent.
From another side, China's Nexperia expressed sharp criticism of the previous supply termination decision. The Netherlands' unilateral action of the Nexperia ignores customer interests and violates contractual agreements and the principles of commercial cooperation. This is a very irresponsible act, "wrote their official statement.
The company added that China's Nexperia currently has supplies of finished goods and goods in sufficient process to maintain shipping continuity until the end of the year and beyond.
A number of analysts in China assess that the self-separation measures from manufacturing networks and sales in the country are actually counterproductive.
"Decoupling relations with the Chinese supply chain will not be sustainable in the long term," said one analyst. "Ironically, this situation has accelerated China's efforts to achieve independence in the semiconductor sector and strengthen the resilience of the domestic industry."
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
