Nexperia Reduces Wafer Deliveries to Chinese Facility, Intensifying Chip Supply Issues

Nexperia's Supply Suspension: Dutch chipmaker Nexperia has suspended wafer supplies to its Chinese assembly plant due to a dispute over contractual payment terms, raising concerns about a potential supply squeeze for automakers globally.

Impact of Government Control: The suspension follows the Dutch government's takeover of Nexperia from its Chinese owner, Wingtech Technology, amid fears of technology appropriation, leading to changes in payment methods for semiconductor sales.

Commitment to Resolution: Nexperia stated that the decision to suspend supplies does not indicate a withdrawal from the Chinese market, and the company is seeking alternative solutions to continue supply to customers.

Industry Concerns: Automakers, including Stellantis and Nissan, are monitoring the situation closely, with reports of significant price increases for Nexperia products, highlighting the potential impact on production and supply chains.