Nexperia has resumed its unfinished business in China.

Nexperia's unit in China has resumed supplying semiconductors to local distributors after Beijing paused all shipments due to a ownership dispute. However, this resumption process is limited to domestic trade only, and all sales must now be conducted in Chinese yuan.

Two sources indicated that Nexperia’s unit in China has advised its suppliers and customers to trade only in yuan. This move is seen as an effort to stabilize supply in China and reflects the company's attempt to operate more independently from its Dutch parent company.

Nexperia is currently under the control of the Dutch government and produces a number of chips widely used in the automotive industry and consumer electronics. Most of these chips are packaged in China and are typically sold through distributors.

As difficulties continue in China, Nexperia is seeking alternative packaging partners due to the lack of signs of resolution to these issues. Additionally, it has informed its customers in China that it does not guarantee the quality of products sourced from its China unit.

The Dutch government took control of Nexperia on September 30 and dismissed China CEO Zhang Xuezheng. This occurred during a period of heightened concerns regarding technology transfer from Nexperia’s China parent company, Wingtech Technology. On October 4, China’s Ministry of Commerce blocked Nexperia’s chip exports from China.

Following this order, Nexperia's China unit halted all shipments to its distributors from its main Dongguan factory. This dispute has heightened concerns about supply chain disruptions in the global automotive industry. Nexperia is one of the largest producers of essential chips that are technically simple but required in large quantities worldwide.

Last Wednesday, the German Ministry of Economy announced that it would hold a meeting with automobile manufacturers and suppliers to discuss developments related to Nexperia. On Tuesday, the Dutch Minister of Economy reported that he had spoken with his Chinese counterpart but did not reach a solution.