Dutch chipmaker Nexperia has said that its employees in China still have access to company platforms and are receiving normal salaries, directly contradicting claims made by its China unit a day earlier. The company stated that any assertions about unpaid salaries are “factually incorrect and misleading.”“We are aware of a message circulated by individuals at Nexperia China falsely claiming that Nexperia and the Dutch government have abandoned the Chinese market and that the factory is now operating under a new entity,” news agency Reuters quoted Nexperia as saying.On Saturday (October 18), Nexperia’s China unit claimed it complies with Chinese law and has the right to operate independently. A notice posted on its official WeChat account said all employees continue working under the unit’s instructions and may reject “external instructions” not approved by its Chinese legal representative.The notice stated that salaries and bonuses will be paid by Nexperia China, not Nexperia Netherlands.

Dutch government takes over control of Nexperia Chinese unit

The dispute stems from actions taken by the Dutch government, which took control of Nexperia on September 30 and removed its Chinese CEO, Zhang Xuezheng. The Dutch government cited concerns about possible technology transfer to Wingtech, Nexperia’s Chinese parent company. Nexperia manufactures chips for automakers and consumer electronics.Days after the Dutch takeover, China’s commerce ministry blocked Nexperia from exporting chips on October 4. Nexperia said the situation arose from “unauthorised actions” by its former CEO Zhang Xuezheng, who has been formally suspended by court order and no longer has authority to represent the company.“Nexperia has reported Zhang’s actions to Dutch authorities and said it remains committed to employees and customers in China,” according to the company statement. The company’s largest manufacturing site is in Hamburg, Germany, but more than 70% of Nexperia’s chips are shipped to China to be packaged in Dongguan, a manufacturing hub in Guangdong province.

America ‘pressured’ Dutch government to take over Nexperia

The Dutch government’s step of seizing control of the Chinese-owned chip company Nexperia was followed by pressure from Washington, a report said. While the Dutch government formally cited “serious governance shortcomings” as the reason for the action, court documents published last week revealed a more direct catalyst: American officials had warned the Dutch government that Nexperia’s CEO, Zhang Xuezheng, would likely need to be replaced for the company to be removed from the US “entity list,” which imposes strict export restrictions.