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In a sign of worsening disruption to the global semiconductor supply chain, the main Dongguan assembly plant of Nexperia – the China-owned, Netherlands-based chipmaker – has sharply scaled down production in recent days, reducing working hours and idling one third of the machines in one part of the production area. Three employees said in an interview with the South China Morning Post on Monday that the company had reduced monthly working hours, while another said his daily shift was operating at reduced hours. Another worker said around one-third of the machines on his production floor had been idle for about a week because of a shortage of wafers normally supplied by Nexperia’s fabs in Germany and the United Kingdom. “The machines rarely stopped. They were kept running even during holidays,” the worker said, adding that the stoppage was highly unusual. The disruption at the Dongguan site – which produces about 70 per cent of Nexperia’s products – follows the Dutch government’s seizure of control of the company from its Chinese parent, Wingtech Technology, late last month. In response, Beijing imposed export controls on products from the Dongguan factory, while Nexperia China publicly rejected directives from its Netherlands headquarters, declaring to employees and customers that it would continue operating independently. The stand-off between the Dutch head office and the Chinese plant has fuelled concerns of supply-chain disruption across the automotive industry, one of Nexperia’s key client bases from Europe to Japan. At the Dongguan complex, recruitment posters that previously hung outside the southeast gate – visible during a Post visit on October 16 – had been removed by Monday, suggesting a pause in hiring. Factory management had urged staff to “diligently perform their duties”, according to workers. In public letters to customers last week, Nexperia China said production was continuing “in an orderly manner” and reaffirmed that it was operating independently after rejecting the Dutch team’s decision to dismiss John Chang, vice-president of global sales and marketing. A Netherlands-based Nexperia spokesman told the Post on Monday that the company continued to supply the Dongguan site and hoped “to de-escalate matters soon”, adding that it “stands by its employees and customers in China”. Security guards at the Dongguan plant declined interview requests, while Wingtech did not respond to questions on Monday. The Dongguan facility has come under the spotlight amid reports that carmakers were facing delays linked to output reductions and Beijing’s recent export restrictions. Government officials on both sides have stepped in. In a phone call last week, Chinese Commerce Minister Wang Wentao urged Dutch Economic Affairs Minister Vincent Karremans to “promptly and properly” resolve the issue. Wang also accepted an “urgent” invitation to visit Brussels in the coming days, EU trade chief Maros Sefcovic said last week. Dutch Prime Minister Dick Schoof said on Thursday that the Netherlands’ seizure of Nexperia was not a “measure against China” but a response to alleged mismanagement by ousted CEO Zhang Xuezheng, who has remained silent on the matter in recent weeks.
