Automotive News Europe — 2025-11-02
Automotive Industry
Dutch chipmaker Nexperia’s China unit said it had established “sufficient inventories of finished goods and work-in-progress” and that its supply chain remained secure and stable after its parent halted wafer supplies.
Nexperia’s Dutch management suspended supplies of wafers to its Chinese assembly plant on Oct. 26, calling it “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms.”
Nexperia produces large volumes of chips in the Netherlands, widely used in the automotive and consumer electronics industries. The majority are packaged in China and mainly sold to distributors.
Nexperia’s China unit called the suspension “unilateral” and “extremely irresponsible,” adding the Dutch parent’s claim about contractual payment was “misleading and highly deceptive,” according to a statement Nexperia China released on Nov. 2.
“We have proactively initiated multiple contingency plans and are accelerating the qualification of new wafer supply sources,” the Chinese unit said on its Chinese social media account, adding that it expected to meet all customers’ demands starting next year.
Existing inventories would sustain the Chinese unit’s order fulfilment “through year-end and beyond,” it added.
Nexperia China had asserted it had the right to operate independently of Nexperia Netherlands after Dutch authorities in September took over control of Nexperia from its Chinese owner Wingtech, citing concerns about possible technology transfers.
Beijing responded by blocking the company’s products from leaving China.
Nexperia’s basic, inexpensive power-control chips such as transistors and diodes cost only a few cents to buy. However, such chips are needed in almost every device that uses electricity. Automakers that use Nexperia’s chips have also warned of potential production disruptions.
The White House is expected to announce that Nexperia’s China facilities will resume shipments, after a trade truce was struck at a summit between U.S. President Donald Trump and his Chinese counterpart Xi Jinping in South Korea.
China’s commerce ministry said on Nov. 1 it would consider exemptions for Nexperia’s chip exports from the country.
Nexperia’s Dutch management welcomed statements by the U.S. and Chinese governments removing barriers to the company shipping its chips, but it declined to comment on its Chinese subsidiary’s plan to accelerate steps towards becoming independent.
Nexperia said on Nov. 2 that its focus is on ensuring the stability of supply to customers. The Dutch government said separately it is continuing talks with the Chinese and other governments, and industry, on a “constructive way forward” for Nexperia.