Executive managers from Dutch chipmaker Nexperia faced the company’s Chinese owner in an Amsterdam court Wednesday in an on-going dispute that's causing semiconductor shortages for automakers.
The details: A three-judge panel in the Netherlands heard arguments regarding whether a deeper investigation is needed into allegations of mismanagement against Wingtech (Nexperia’s owner), reports Reuters.
Top European executives at Nexperia also claim that Wingtech is sharing intellectual property with the Chinese government.
Meanwhile, Wingtech is dismissing any wrong-doing and argues that control of the subsidiary must be returned to ensure its survival.
Why it matters: The prolonged disruption at Nexperia is translating into production cuts, delayed builds, fewer optioned units, and shifting availability by model and trim. And these conditions could ripple through dealership inventory planning, order timing, and customer expectations on the showroom floor.
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But between the lines: Automakers are scrambling to find supply chain workarounds that can keep semiconductors (microchips that facilitate electronic circuits) flowing.
The Chinese-based arm of Nexperia is using a stocked supply of wafers (key components of semiconductors) to ride out the dispute, sources close to the company told the Financial Times.
And it has also found local suppliers in China to provide the wafers.
Several companies are now acquiring the wafers directly from European-based Nexperia locations, then shipping them to China through Hong Kong for final assembly.
However, automotive executives are warning that they still face a shortage of chips in the long-term.
Case in point: Honda is extending production suspensions at three of its Chinese manufacturing facilities.
Bottom line: With Nexperia’s future tied up in court, chip risk is back on the radar. Dealers should watch OEM communications closely, assume some trims or tech packages could see renewed supply pressure, and be ready to pivot customers to in-stock or simpler configurations if production hiccups reappear in the months ahead.
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