Nexperia cannot guarantee quality of chips made in China since October 13

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AMSTERDAM (Reuters) -Computer chipmaker Nexperia expects to resolve a crisis over control of the company, it said on Thursday, but warned customers it cannot guarantee products made in China after October 13 are authentic and meet quality standards.

The Dutch company’s statement said that facilities in other countries are operating as normal. The Dutch government seized control of Nexperia on September 30 and the Chinese government blocked exports of its products from October 4, leading to a shortage of Nexperia chips widely used by carmakers.

In a statement, Nexperia welcomed news that, under a U.S.-China agreement, it will not be subject to U.S. export restrictions for one year. China has also said it will allow exports on a case-by-case basis.

Nexperia’s Chinese parent firm Wingtech is subject to U.S. restrictions and its founder Zhang Xuezheng was suspended from his role as Nexperia CEO by a Dutch court on October 7, Nexperia said, adding that reports to the contrary were “incorrect”.

While most of Nexperia’s chips are made in Europe, 70% are packaged and sold to distributors in China. The company’s Chinese arm has asserted its independence from Dutch control and says it has sufficient stockpiles to supply customers through the end of 2025, and will look for alternative ways to source its chips.

“We remain fully committed to our operations in China,” the Dutch company said, adding that it has teams working on other options to ensure “product availability in a sustainable manner” in the future. The other 30% of Nexperia’s products are currently packaged and distributed from Malaysia and the Philippines.

(Reporting by Toby SterlingEditing by David Goodman and Louise Heavens)