Warning from Nexperia: be cautious with chips from China

Nexperia, a European chip manufacturer, is warning its customers that it can no longer guarantee the quality of chips coming from its factory in China, writes the FD. The news illustrates the escalating battle for control of Nexperia. Most chips are produced in China and shipped to the rest of the world, but the European branch has now warned customers due to quality issues. This comes after China announced an export ban on Nexperia chips, despite them still coming onto the market.

Escalating control issue

Nexperia's warning to customers highlights the growing disagreement over control within the company. The fact that the company is openly expressing doubts about the quality of its own chips from China shows how deep the problems run. This is happening against the backdrop of an earlier export ban on Nexperia chips announced by China, which further complicates the situation. Despite the ban, the chips continue to appear on the market, raising questions about the enforcement and control of production and distribution.

No guarantee on Chinese chips

The European branch of Nexperia has indicated that it can no longer guarantee the quality of chips from the Chinese factory. This decision comes because Nexperia no longer has control over the production processes in China. This lack of control follows the recent interference by the Dutch Ministry of Economic Affairs at Nexperia's headquarters in Nijmegen, combined with reports in Chinese media that the Chinese part of the company does not have to comply with the new authority in the Netherlands. Nexperia chips are widely used, especially in the automotive industry, which increases the impact of this warning.

The automotive industry, a major customer of Nexperia chips, may directly experience the consequences of this quality warning. If there are quality differences between chips from China and other factories, this could cause problems in vehicle production and reliability, possibly resulting in recalls and warranty claims.

Political and economic dimensions

The issue surrounding Nexperia is not just an internal corporate conflict, but also has political and economic aspects. The intervention of the Dutch Ministry of Economic Affairs and the Chinese export ban show that broader interests are at stake. The conflict illustrates the growing tensions between Europe and China in the field of technology and economics, with chip production being a strategically important factor.