The logo of Chinese-owned semiconductor institution Nexperia is displayed astatine the chipmaker's German facility, aft the Dutch authorities seized power and car manufacture bodies sounded the alarm implicit the imaginable interaction connected car production, successful Hamburg, Germany, Oct. 23, 2025.
Jonas Walzberg | Reuters
Dutch chipmaker Nexperia has suspended supplies of wafers to its Chinese assembly plant, according to a missive addressed to its customers that was reviewed by Reuters, which could exacerbate a proviso squeeze that is worrying automakers worldwide.
The letter, dated October 29 and signed by Nexperia interim CEO Stefan Tilger, said the October 26 suspension affecting its plant in Dongguan, successful confederate China's Guangdong province, was "a nonstop effect of the section management's caller nonaccomplishment to comply with the agreed contractual outgo terms."
Nexperia has been locked successful a quality with its Chinese unit aft the Dutch government took control of Nexperia from its Chinese owner Wingtech Technology 600745.S on September 30. It besides removed its Chinese CEO, citing concerns that its exertion could beryllium appropriated by Wingtech.
Nexperia's Chinese unit had resumed supplying semiconductors to section customers but stipulated that each income to distributors would request to beryllium settled utilizing the Chinese yuan. Previously, transactions had been in foreign currencies similar the U.S. dollar.
The institution produces ample volumes of chips successful the Netherlands that are wide utilized successful the automotive and user electronics industries. Some 70% of the European-produced chips are packaged successful China and sold mostly to distributors.
"While we person maintained shipments for arsenic agelong arsenic commercially feasible, continuing the existent travel of proviso from our front-end sites is nary longer justifiable," the missive said.
"Unless these contractual obligations are afloat satisfied, we cannot resume wafer supply to the site. Nexperia is processing alternate solutions to guarantee (that) proviso (is) continuing to our customers."
Nexperia added that the determination did not bespeak an volition to retreat from its tract successful Dongguan oregon the Chinese market arsenic a whole, adding that it remained committed to uncovering a resolution.
Nexperia said it is financially autarkic of Wingtech and it does not rise superior from Wingtech, the missive showed.
A spokesperson for Nexperia confirmed it sent the missive and the institution could not remark further. Nexperia China did not instantly respond to requests for comment. Wingtech declined to comment.
A Dutch government spokesperson referred questions astir the wafer shut-off to Nexperia, saying the determination had been a firm determination portion authorities involution "concerns the preservation of accumulation capableness and is not aimed astatine the company's day-to-day operations".
The Netherlands is successful discussions with European governments and the European Commission, arsenic good as Chinese authorities, "to enactment toward a constructive solution," the spokesperson said.
EU tech main Henna Virkkunen said aft a gathering with Nexperia management connected Friday that they are moving toward a "diplomatic breakthrough" to resoluteness the situation, but successful the meantime they are looking astatine unspecified short- and medium-term measures to relieve European industry.
Court filings showed that the seizure by the Dutch authorities came arsenic U.S. unit was rising on Nexperia after Wingtech was placed connected a restricted-export list, though Dutch authorities accidental governance shortcomings were the trigger.
On October 4, China's commerce ministry blocked Nexperia from exporting chips from China.
Industry bodies person sounded the alarm implicit the imaginable interaction connected production, with Stellantis STLAM.MI saying connected Thursday that it had set up a "war room" to show the situation.
Japanese automaker Nissan 7201.T said it had enough chips to past until the first week of November without disruption.
Some Nexperia products that utilized to outgo conscionable a few Chinese cents person gone up to 2 oregon 3 yuan each implicit the past 2 weeks, much than 10 times their original price, according to a root acquainted with the matter.
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