Nexperia Suspends Salaries and Access for Chinese Employees, Reports Say

Key Takeaways

Nexperia has suspended employee access to company systems and halted salary payments in China amid escalating tensions between the Netherlands and China.
The Chinese unit expressed disappointment, citing “ruthless suppression” from European management and stating it has begun self-rescue efforts.
Wingtech Technology, Nexperia’s parent company, confirmed the account suspensions but noted that some access has since been restored.

Details of the Situation

Nexperia, the Dutch chipmaker, has taken significant steps against its employees in China by suspending access to work accounts and halting salaries, driven by escalating political tensions between the Netherlands and China. Reports from local Chinese media indicate that this decision represents a serious blow to the company’s operations in the country.

In a letter shared with customers, Nexperia’s Chinese subsidiary expressed feelings of confusion and disappointment, stating that the European management appeared to be “abandoning” the Chinese market and citing a period of “ruthless suppression.” These sentiments underscore the tense environment in which the company is operating.

Wingtech Technology, the Chinese electronics manufacturer that acquired Nexperia in 2019, supported these claims by confirming on local media that the accounts belonging to Nexperia’s Chinese team were blocked on Friday without clear explanation. Fortunately for employees, reports indicate that some access to these accounts has been restored.

In response to the disruption, Nexperia’s Chinese unit has initiated “self-rescue measures” to ensure a stable supply for its local customers. This strategy involves creating a local supply chain as a contingency against potential cuts from the European headquarters.

The ongoing situation highlights the growing challenges faced by international companies operating in politically tense environments. Nexperia’s actions and the reactions from its Chinese unit exemplify the difficulties of navigating business amidst geopolitical disputes. The situation is likely to develop further as both Nexperia and its parent company, Wingtech, address the ramifications of these latest actions.

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