"The split followed the decision by the Ministry of Economic Affairs to place Nexperia under emergency legislation at the end of September and the suspension of CEO Zhang Xuezheng by the Enterprise Chamber. Shortly thereafter, the Chinese branch of Nexperia, including the large assembly plant in Dongguan, declared itself effectively independent from Nexperia BV in Nijmegen. Since then, the factory has been supplying Chinese customers directly and no longer uses the group's international distribution model."
"Nexperia enjoyed years of success thanks to a highly integrated production chain. Silicon wafers were produced in Germany, among other places, while packaging and testing took place largely in China and Southeast Asia, after which the chips were delivered worldwide. That structure has now been broken. European factories have less control over Chinese production, while the Chinese branch has less access to wafers and technology from Europe."
The Ministry of Economic Affairs placed Nexperia under emergency legislation and the Enterprise Chamber suspended CEO Zhang Xuezheng, triggering a split. The Chinese production arm, including the Dongguan assembly plant, declared itself independent from Nexperia BV and began selling directly to Chinese customers, abandoning the group's international distribution model. The previous integrated chain — wafer production in Europe and packaging and testing in China and Southeast Asia — has fractured. European factories now have reduced control over Chinese manufacturing, while the Chinese branch faces constrained access to wafers and European technology. Both entities are operating less efficiently, causing supply disruptions for many customers.
Read at Techzine Global
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