"Nexperia, the EU-based automotive chipmaker at the centre of a geopolitical dispute, has suspended supplies to its Chinese factory, stepping up a trade war that threatens to halt production at carmakers around the world. The company wrote to customers this week informing them all supplies to a Chinese plant had been suspended. In September, the Netherlands used national security laws to take control of the chipmaker, citing concerns that its Chinese owner, Wingtech Technologies, was planning to shift intellectual property to another company it owned."
"China responded by halting exports from all Nexperia's factories in China, prompting warnings this week that the embargo would force production lines at EU car factories to close within days. An extended blockade threatens the supply chain, because many Nexperia products manufactured in Europe including the wafers from which chips are cut were previously shipped to the Chinese factory for packaging and distribution."
Nexperia suspended shipments to its Dongguan factory after local management reportedly failed to meet contractual payment terms. The Netherlands used national security laws to take control of Nexperia in September and removed Wingtech's chairman amid concerns about intellectual property transfers. China halted exports from all Nexperia factories in response, creating warnings that EU car production lines could close within days. Many wafers and components made in Europe were sent to the Chinese plant for packaging and distribution, increasing the risk of a wider supply-chain disruption. Nexperia continues shipments from a smaller Malaysian plant and says shipments could resume if payments are made.
Read at www.theguardian.com
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