By Che Pan and Wen-Yee Lee
BEIJING/TAIPEI (Reuters) – The Chinese unit of Dutch chipmaker Nexperia has resumed supplying semiconductors to local distributors, according to two people briefed on the matter, after previously halting all shipments when Beijing banned exports following an ownership dispute.
But as part of the resumption, which is limited to domestic trade, all sales to distributors must now be settled in Chinese yuan, the people said, whereas previously transactions only used foreign currencies such as the US dollar.
The Chinese unit also ordered distributors to transact with their customers only in yuan, in an apparent attempt to stabilize supply in China and operate more independently from its Dutch parent, one of the people said.
Nexperia, now under control of the Dutch government, produces large volumes of chips in the Netherlands widely used in the automotive industry and consumer electronics. Most are packaged in China and sold primarily to distributors.
Nexperia is now looking for alternative packaging partners outside China as the dispute with its Chinese subsidiary shows few signs of a quick resolution, the people said.
Nexperia also warned customers in China that it does not guarantee the quality of products sourced from its Chinese subsidiary, the second person said.
They spoke on condition of anonymity because of the sensitivity of the matter. The temporary suspension of sales and the resumption with settlements in yuan had not been previously reported.
A spokesperson for Nexperia declined to comment on the actions of its Chinese unit, saying its efforts to seek packaging partners outside China predated the dispute and were not part of a move away from its Chinese factory.
As for quality, the spokesperson said it had to inform customers about potential risks, but stopped short of saying they should not buy from its Chinese unit.
Nexperia’s Chinese unit did not respond to a request for comment.
THE DUTCH GOVERNMENT TAKES CONTROL
The Dutch government took control of Nexperia on September 30 and removed its Chinese CEO, Zhang Xuezheng, citing concerns that its technology could be hijacked by Nexperia’s Chinese parent, Wingtech Technology.
Court documents showed the seizure came after increasing US pressure on Nexperia after Wingtech was placed on a restricted export list, although Dutch authorities say governance deficiencies were the trigger.
On October 4, China’s Ministry of Commerce blocked Nexperia from exporting chips from China.
Following the order, Nexperia’s Chinese unit suspended shipments from its main Dongguan factory to all distributors, the first person said.