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Nexperia China Says It Has Ample Inventories After Dutch Parent Halts Wafer Supplies

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Nexperia’s China division said on Sunday it has built up sufficient inventories and secured its supply chain after the Dutch parent company suspended wafer shipments to its Chinese assembly facilities. The unit assured customers that production and deliveries would continue as planned despite the disruption.

The Dutch chipmaker halted wafer supplies on October 26, citing what it called the Chinese unit’s failure to comply with agreed payment terms. Nexperia China, however, rejected the accusation, calling the move “unilateral” and “extremely irresponsible,” and describing the payment-related claims as “misleading and highly deceptive.”

The dispute follows months of political tension after Dutch authorities took control of Nexperia from its Chinese owner, Wingtech, in September over national security concerns about potential technology transfers. In response, Beijing temporarily blocked the company’s products from being exported.

Nexperia China said it has “proactively initiated contingency plans” and is working to qualify new wafer suppliers, adding that existing inventories would sustain production “through year-end and beyond.” The company expects to meet full customer demand starting next year.

Nexperia produces inexpensive but essential power-control chips — such as transistors and diodes — widely used across consumer electronics and the automotive industry. Automakers have warned that any prolonged supply disruption could affect production.

Netherlands Struggles to Resolve Nexperia Standoff With China as Carmakers Warn of Shortages

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The Netherlands is locked in a tense dispute with China over chipmaker Nexperia BV, as high-level talks between Dutch Economy Minister Vincent Karremans and China’s Commerce Minister Wang Wentao failed to produce a breakthrough on Tuesday. The impasse is deepening concerns among European carmakers, who rely heavily on Nexperia’s chips for production.

The standoff began after the Dutch government seized control of Nexperia last month, citing national security risks tied to its Chinese parent company, Wingtech Technology, which is listed in Shanghai. In retaliation, Beijing blocked exports of Nexperia’s finished chips from China, effectively freezing the company’s supply chain and alarming automakers already facing global component shortages.

Karremans said both sides discussed “further steps toward reaching a solution acceptable to all parties,” but China’s response was sharply critical. The Chinese commerce ministry accused the Netherlands of “overstretching the concept of national security,” warning that the seizure “has seriously affected the stability of global supply chains.”

The fallout is hitting the automotive sector hardest. Germany’s VDA auto industry association warned that production could soon face “considerable restrictions or even stoppages” if the chip flow is not restored quickly. Nexperia’s components, while not high-end, are vital for mass-market electronics and car manufacturing, and both sides of its operations — European production and Chinese packaging — are struggling to find alternatives.

The dispute comes amid escalating global trade frictions, including U.S. import tariffs and Chinese export curbs on rare earth materials, compounding pressures on Europe’s already fragile industrial supply lines.

Automakers warn Nexperia chip dispute could hit U.S. production within weeks

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A U.S. automaker group representing companies including General Motors, Ford, Toyota, Volkswagen, and Hyundai warned Thursday that the ongoing chip supply disruption involving Dutch firm Nexperia could soon halt vehicle production in the United States.

The Alliance for Automotive Innovation said the issue stems from a trade and ownership dispute between the Dutch government and China, which has forced Nexperia to halt guaranteed deliveries of crucial automotive semiconductors.

“If the shipment of automotive chips doesn’t resume – quickly – it’s going to disrupt auto production in the U.S. and many other countries and have a spillover effect in other industries,” said John Bozzella, the group’s CEO.

Some automakers told Reuters that U.S. production lines could be affected as early as next month, although they declined to be named due to the sensitivity of the issue.

The dispute escalated after the Dutch government seized control of Nexperia on September 30, citing national security concerns over its Chinese owner, Wingtech. The move followed U.S. pressure to curb potential technology transfers and the Chinese commerce ministry’s export controls restricting shipments of Nexperia-made components.

Nexperia’s chips, while not the most advanced, are vital to car manufacturing and electronic component assembly. Analysts warn that even short-term supply interruptions could ripple across global production lines.

European automakers have also raised alarms. The ACEA, Europe’s car industry body, said the situation could lead to “significant disruption” across manufacturing networks if not resolved quickly.