Nexperia, a Dutch semiconductor company, has halted wafer supplies to its assembly plants in China, exacerbating global supply chain concerns for automakers. This decision follows a shutdown at its Dongguan factory due to local management’s failure to meet payment terms. The Dutch government had previously seized control of Nexperia from its Chinese owner, Wingtech Technology, amid fears of technology appropriation. While Nexperia’s China division is resuming semiconductor sales, transactions now require payment in Chinese renminbi instead of foreign currencies.
Nexperia’s interim CEO, Stephen Tilger, stated that supply continuity was no longer feasible without contract compliance. The company remains committed to its Dongguan operations and is exploring alternatives to maintain supply. The Dutch government has stated that the intervention is focused on production capacity and is in discussions with European and Chinese authorities to find a resolution.
Industry groups are concerned about potential production impacts; for instance, Stellantis established a task force to monitor developments. Prices for certain Nexperia products have surged dramatically in recent weeks, exacerbating supply concerns in the automotive sector.
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