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 business our bodies sounded the alarm over the doable influence 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 response to a letter addressed to its clients that was reviewed by Reuters, which might exacerbate a provide squeeze that’s worrying automakers worldwide.
The letter, dated October 29 and signed by Nexperia interim CEO Stefan Tilger, mentioned 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 cost 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 Expertise 600745.S on September 30. It additionally eliminated its Chinese language CEO, citing considerations that its expertise may very well 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 must be settled utilizing the Chinese language yuan. Beforehand, transactions had been in foreign currency just like the U.S. greenback.
The corporate produces massive volumes of chips within the Netherlands which might be broadly used within the automotive and shopper electronics industries. Some 70% of the European-produced chips are packaged in China and offered principally to distributors.
“Whereas we’ve got maintained shipments for so long as commercially possible, persevering with the present movement of provide from our front-end websites is now not justifiable,” the letter mentioned.
“Except these contractual obligations are absolutely happy, we can not resume wafer provide to the location. Nexperia is growing different options to make sure (that) provide (is) persevering with to our clients.”
Nexperia added that the choice didn’t mirror an intention to withdraw from its website in Dongguan or the Chinese language market as an entire, including that it remained dedicated to discovering a decision.
Nexperia mentioned 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 resolution whereas state intervention “considerations 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 answer,” the spokesperson mentioned.
EU tech chief Henna Virkkunen mentioned after a gathering with Nexperia administration on Friday that they’re working towards a “diplomatic breakthrough” to resolve the scenario, however within the meantime they’re unspecified short- and medium-term measures to alleviate European business.
Court docket 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 checklist, although Dutch authorities say governance shortcomings had 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 influence on manufacturing, with Stellantis STLAM.MI saying on Thursday that it had set up a “battle room” to observe the scenario.
Japanese automaker Nissan 7201.T mentioned 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 unique worth, in response to a supply aware of the matter.