Nexperia China Seeks New Wafer Suppliers, Expected Completion in 6 Months
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 27 2025
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Should l Buy NXP?
Source: Yahoo Finance
- Wafer Supply Crisis: Nexperia China is facing a supply disruption due to payment refusals to its Dutch headquarters, prompting the firm to validate domestic wafer suppliers, expected to be completed between Q1 and Q2 of 2026, highlighting the urgency in addressing supply chain challenges.
- Production Capacity Decline: Despite the wafer shortage, Nexperia China has managed to produce over 11 billion chips since mid-October, yet this represents a 14% drop compared to its annual output of over 110 billion units, which could adversely affect its market share and customer trust.
- Escalating Legal Dispute: The legal hearing between Wingtech and Nexperia's headquarters is set for next month in the Netherlands, and if unresolved within six months, Wingtech may pursue international arbitration with potential claims reaching up to $8 billion, underscoring the tension and complexity in their relationship.
- Management Changes: Following a ruling from the Dutch court, Nexperia's CEO was ousted, with the CFO appointed as interim CEO, reflecting significant changes in corporate governance that may impact future decision-making and strategic direction.
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About NXP
Nuveen Select Tax-Free Income Portfolio (the Fund) is a diversified closed-end management investment company. The Fund’s investment objective is to provide current income exempt from regular federal income tax, consistent with preservation of capital. The Fund will invest at least 80% of its Assets in municipal securities and other related investments, the income from which is exempt from regular federal income tax and federal alternative minimum tax. The Fund may invest up to 20% of its Managed Assets in municipal securities that at the time of investment are rated below investment grade or are unrated. The Fund may invest up to 15% of its Managed Assets in inverse floating rate securities. The Fund may invest up to 10% of its Managed Assets in securities of other open-or closed-end investment companies (including ETFs) that invest primarily in municipal securities of the types in which the Fund may invest directly. The Fund's investment advisor is Nuveen Fund Advisors, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dutch Court to Hear Nexperia Mismanagement Case on January 14
- Legal Proceedings Initiated: A Dutch court is set to hold a hearing on January 14 to publicly address allegations of mismanagement at Nexperia, marking the formal initiation of legal proceedings that could have profound implications for the company's governance structure.
- Executive Suspension: Following preliminary rulings, the Amsterdam Enterprise Chamber has suspended Nexperia's former CEO, a decision that not only destabilizes the company's leadership but may also lead to a decline in investor confidence.
- Share Transfer: The court has ordered the transfer of shares held by Nexperia's parent company, Wingtech, to a Dutch lawyer, a move that could impact shareholder structure and future corporate decisions, increasing the complexity of external oversight.
- Increased Legal Risks: The outcome of this hearing will directly affect Nexperia's operations and reputation, and if the investigation yields unfavorable results, it could lead to stricter regulatory measures and potential financial losses.
See More
Nexperia China Seeks New Wafer Suppliers, Expected Completion in 6 Months
- Wafer Supply Crisis: Nexperia China is facing a supply disruption due to payment refusals to its Dutch headquarters, prompting the firm to validate domestic wafer suppliers, expected to be completed between Q1 and Q2 of 2026, highlighting the urgency in addressing supply chain challenges.
- Production Capacity Decline: Despite the wafer shortage, Nexperia China has managed to produce over 11 billion chips since mid-October, yet this represents a 14% drop compared to its annual output of over 110 billion units, which could adversely affect its market share and customer trust.
- Escalating Legal Dispute: The legal hearing between Wingtech and Nexperia's headquarters is set for next month in the Netherlands, and if unresolved within six months, Wingtech may pursue international arbitration with potential claims reaching up to $8 billion, underscoring the tension and complexity in their relationship.
- Management Changes: Following a ruling from the Dutch court, Nexperia's CEO was ousted, with the CFO appointed as interim CEO, reflecting significant changes in corporate governance that may impact future decision-making and strategic direction.
See More
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- Distribution Adjustment: Pre-reorganization distributions will be declared on December 30, 2025, with a record date of January 9, 2026, ensuring investors continue to receive stable income streams post-reorganization.
- Asset Management Scale: As of September 30, 2025, Nuveen manages $53 billion in closed-end fund assets, demonstrating its strong position in the income-focused investment sector.
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- Communication Barriers: The company stated that it has made repeated attempts to establish direct communication with its Chinese unit through conventional channels but received no meaningful response, highlighting severe internal communication issues.
- Impact of Political Intervention: While the Dutch government's intervention measures against Nexperia have been suspended, restoring the corporate structure with parent company Wingtech remains complex and uncertain, indicating challenges in supply chain recovery.
- Industry Warnings: The German Association of the Automotive Industry has warned of elevated supply risks, particularly for the first quarter of 2026, noting that while production has remained stable recently, future component availability remains uncertain.
See More
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Shareholder Participation: Shareholders can submit proposals for consideration at the meetings by specific deadlines, with detailed information about the reorganizations and board member candidates to be provided in upcoming proxy materials.
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Market Reaction to Retail Sales Data: Wall Street opened lower as strong retail sales data raised concerns about the Federal Reserve potentially delaying interest rate cuts, with major indices like the S&P 500 and Nasdaq experiencing declines.
Investor Sentiment and Fed Outlook: The robust retail sales figures, alongside other economic indicators, have led to uncertainty regarding the Fed's future rate decisions, with expectations for fewer rate cuts next year than previously anticipated.
See More
Dutch Court to Hear Nexperia Mismanagement Case on January 14
- Legal Proceedings Initiated: A Dutch court is set to hold a hearing on January 14 to publicly address allegations of mismanagement at Nexperia, marking the formal initiation of legal proceedings that could have profound implications for the company's governance structure.
- Executive Suspension: Following preliminary rulings, the Amsterdam Enterprise Chamber has suspended Nexperia's former CEO, a decision that not only destabilizes the company's leadership but may also lead to a decline in investor confidence.
- Share Transfer: The court has ordered the transfer of shares held by Nexperia's parent company, Wingtech, to a Dutch lawyer, a move that could impact shareholder structure and future corporate decisions, increasing the complexity of external oversight.
- Increased Legal Risks: The outcome of this hearing will directly affect Nexperia's operations and reputation, and if the investigation yields unfavorable results, it could lead to stricter regulatory measures and potential financial losses.
See More
Nexperia China Seeks New Wafer Suppliers, Expected Completion in 6 Months
- Wafer Supply Crisis: Nexperia China is facing a supply disruption due to payment refusals to its Dutch headquarters, prompting the firm to validate domestic wafer suppliers, expected to be completed between Q1 and Q2 of 2026, highlighting the urgency in addressing supply chain challenges.
- Production Capacity Decline: Despite the wafer shortage, Nexperia China has managed to produce over 11 billion chips since mid-October, yet this represents a 14% drop compared to its annual output of over 110 billion units, which could adversely affect its market share and customer trust.
- Escalating Legal Dispute: The legal hearing between Wingtech and Nexperia's headquarters is set for next month in the Netherlands, and if unresolved within six months, Wingtech may pursue international arbitration with potential claims reaching up to $8 billion, underscoring the tension and complexity in their relationship.
- Management Changes: Following a ruling from the Dutch court, Nexperia's CEO was ousted, with the CFO appointed as interim CEO, reflecting significant changes in corporate governance that may impact future decision-making and strategic direction.
See More
Nuveen Reorganizes Tax-Free Income Funds, Effective January 12, 2026
- Fund Reorganization: Nuveen's NXC and NXN funds will merge into NXP, expected to take effect before market opens on January 12, 2026, aimed at optimizing asset management and enhancing investor returns.
- Distribution Adjustment: Pre-reorganization distributions will be declared on December 30, 2025, with a record date of January 9, 2026, ensuring investors continue to receive stable income streams post-reorganization.
- Asset Management Scale: As of September 30, 2025, Nuveen manages $53 billion in closed-end fund assets, demonstrating its strong position in the income-focused investment sector.
- Long-Term Strategy: With over 35 years of experience in managing closed-end funds, this reorganization not only enhances operational efficiency but also further solidifies Nuveen's leadership in the market.
See More
Nexperia Urges China Unit to Restore Supply Chain Amid Imminent Production Outages
- Supply Chain Crisis: Nexperia's open letter warns of imminent production outages reported by customers, urgently calling on its China unit to restore supply chain operations to prevent further threats to global automotive supply chains.
- Communication Barriers: The company stated that it has made repeated attempts to establish direct communication with its Chinese unit through conventional channels but received no meaningful response, highlighting severe internal communication issues.
- Impact of Political Intervention: While the Dutch government's intervention measures against Nexperia have been suspended, restoring the corporate structure with parent company Wingtech remains complex and uncertain, indicating challenges in supply chain recovery.
- Industry Warnings: The German Association of the Automotive Industry has warned of elevated supply risks, particularly for the first quarter of 2026, noting that while production has remained stable recently, future component availability remains uncertain.
See More
Nuveen Select Tax-Free Income Portfolios Announce Proposed Reorganizations and Shareholder Meeting Update
Reorganization Proposal: The Boards of Trustees for Nuveen's tax-free income portfolios (NXC, NXN, NXP) have proposed a reorganization to merge NXC and NXN into NXP, aiming to lower operating expenses and increase trading volume, pending shareholder approval at their 2025 Annual Meetings.
Shareholder Participation: Shareholders can submit proposals for consideration at the meetings by specific deadlines, with detailed information about the reorganizations and board member candidates to be provided in upcoming proxy materials.
See More
Stocks Slip As Strong November Retail Sales Raise Concerns Over 2025 Fed Rate Cuts
Market Reaction to Retail Sales Data: Wall Street opened lower as strong retail sales data raised concerns about the Federal Reserve potentially delaying interest rate cuts, with major indices like the S&P 500 and Nasdaq experiencing declines.
Investor Sentiment and Fed Outlook: The robust retail sales figures, alongside other economic indicators, have led to uncertainty regarding the Fed's future rate decisions, with expectations for fewer rate cuts next year than previously anticipated.
See More
