The emblem of Chinese language-owned semiconductor firm Nexperia is displayed on the chipmaker’s German facility, after the Dutch authorities seized management and auto trade our bodies sounded the alarm over the doable impression on automobile manufacturing, in Hamburg, Germany, Oct. 23, 2025.
Jonas Walzberg | Reuters
Dutch chipmaker Nexperia has suspended provides of wafers to its Chinese language meeting plant, in line with a letter addressed to its clients that was reviewed by Reuters, which may exacerbate a provide squeeze that’s worrying automakers worldwide.
The letter, dated October 29 and signed by Nexperia interim CEO Stefan Tilger, stated the October 26 suspension affecting its plant in Dongguan, in southern China’s Guangdong province, was “a direct consequence of the native administration’s current failure to adjust to the agreed contractual fee phrases.”
Nexperia has been locked in a dispute with its Chinese language unit after the Dutch authorities took management of Nexperia from its Chinese language proprietor Wingtech Know-how 600745.S on September 30. It additionally eliminated its Chinese language CEO, citing issues that its expertise could possibly be appropriated by Wingtech.
Nexperia’s Chinese language unit had resumed supplying semiconductors to native clients however stipulated that every one gross sales to distributors would should be settled utilizing the Chinese language yuan. Beforehand, transactions had been in foreign exchange just like the U.S. greenback.
The corporate produces massive volumes of chips within the Netherlands which can be broadly used within the automotive and shopper electronics industries. Some 70% of the European-produced chips are packaged in China and bought largely to distributors.
“Whereas we now have maintained shipments for so long as commercially possible, persevering with the present move of provide from our front-end websites is now not justifiable,” the letter stated.
“Except these contractual obligations are totally glad, we can’t resume wafer provide to the positioning. Nexperia is creating different options to make sure (that) provide (is) persevering with to our clients.”
Nexperia added that the choice didn’t replicate an intention to withdraw from its website in Dongguan or the Chinese language market as a complete, including that it remained dedicated to discovering a decision.
Nexperia stated it’s financially unbiased of Wingtech and it doesn’t increase capital from Wingtech, the letter confirmed.
A spokesperson for Nexperia confirmed it despatched the letter and the corporate couldn’t remark additional. Nexperia China didn’t instantly reply to requests for remark. Wingtech declined to remark.
A Dutch authorities spokesperson referred questions concerning the wafer shut-off to Nexperia, saying the transfer had been a company determination whereas state intervention “issues the preservation of manufacturing capability and isn’t aimed on the firm’s day-to-day operations”.
The Netherlands is in discussions with European governments and the European Fee, in addition to Chinese language authorities, “to work towards a constructive resolution,” the spokesperson stated.
EU tech chief Henna Virkkunen stated after a gathering with Nexperia administration on Friday that they’re working towards a “diplomatic breakthrough” to resolve the state of affairs, however within the meantime they’re taking a look at unspecified short- and medium-term measures to alleviate European trade.
Courtroom filings confirmed that the seizure by the Dutch authorities got here as U.S. strain was rising on Nexperia after Wingtech was positioned on a restricted-export listing, although Dutch authorities say governance shortcomings have been the set off.
On October 4, China’s commerce ministry blocked Nexperia from exporting chips from China.
Business our bodies have sounded the alarm over the doable impression on manufacturing, with Stellantis STLAM.MI saying on Thursday that it had set up a “conflict room” to observe the state of affairs.
Japanese automaker Nissan 7201.T stated it had sufficient chips to final till the first week of November with out disruption.
Some Nexperia merchandise that used to price only a few Chinese language cents have gone up to 2 or three yuan every over the previous two weeks, greater than 10 instances their authentic worth, in line with a supply aware of the matter.
