(MENAFN) Dutch semiconductor manufacturer Nexperia disclosed late Thursday that repeated attempts to restore communication with Nexperia's entities in China have yielded no "meaningful" response.

In an open letter, Nexperia said it continues to seek a constructive collaboration with Nexperia's entities in China and has been requesting an open dialogue to find a path forward to restoring the regular supply of goods.

"Nexperia B.V. has made repeated and multiple attempts, both formal and informal, to re-establish the dialogue with Nexperia's entities in China by means of direct outreach via calls, emails and proposed meetings, various offers to collaborate on mutually beneficial solutions and even formal correspondence to demand performance of rights," it said.

Nexperia urged the Chinese entities to respond to its outreaches and engage "constructively" and with a view to restoring the supply chain, as this is in the interest of all parties involved, including its customers.

The firm indicated that failed outreach efforts necessitated a public statement to underscore the critical nature of the situation.

"Nexperia remains fully committed to transparency, business continuity, and the interests of its customers, suppliers, employees, and stakeholders worldwide," it added.

Nexperia's China dispute, supply chain issues
Beijing imposed an export prohibition on chips manufactured at the company's Chinese facilities following the Netherlands' September 30 decision to assume temporary control of Nexperia under a 1952 statute empowering the Dutch government to block or reverse corporate decisions threatening national or European production capacity.

Authorities justified this intervention citing Wingtech transferring technology and manufacturing operations to China.

On November 19, the Dutch government announced suspension of "state intervention" against chipmaker Nexperia following productive discussions with China. However, Nexperia's supply chain remains disrupted since the Dutch government's intervention.

In an October 17 memo distributed to customers, Nexperia's Chinese division revealed that the company's European headquarters had severed computer access for Chinese-based employees and halted salary disbursements.

With Beijing blocking exports from the company's Chinese operations, numerous manufacturers—particularly automotive suppliers receiving Nexperia chips—have experienced supply shortages.

Nexperia produces the majority of its products in Hamburg, Germany, shipping them to China for global distribution.

Controlled by China's Wingtech, the enterprise produces billions of basic yet ubiquitous chips powering vehicles and various electronic devices. Recent scarcities of these components have jeopardized automakers' supply chains, triggering manufacturing postponements.

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