Nexperia China says chip supply secure despite parent’s suspension

[Electronic]
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The Chinese subsidiary of Dutch semiconductor firm Nexperia said it has enough wafer inventory to continue meeting customer orders, even after its parent company halted shipments to its local assembly plant.

In a statement posted Sunday on its official WeChat account, Nexperia China assured clients that production and deliveries would remain “secure and reliable.” The company added that it has “multiple contingency plans” in place and is expediting efforts to source wafers from alternative suppliers.

The assurance follows a supply cutoff from the Netherlands-based parent company on October 26, amid an ongoing dispute over control of the business that has disrupted chip supply chains across Europe and Asia.

The conflict stems from geopolitical tensions and ownership concerns. Last month, Beijing barred Nexperia from exporting from China in retaliation for the Dutch government’s decision to take control of the company, citing national security concerns tied to its Chinese owner, Wingtech Technology. Dutch authorities said they intervened because Wingtech’s management decisions were threatening the supply of essential semiconductors.

Amid a thaw in U.S.-China relations following a trade truce between Presidents Donald Trump and Xi Jinping, Washington announced on Saturday that Beijing will allow Nexperia’s Chinese facilities to resume outbound shipments. The move aims to ease global worries over chip shortages that had threatened automotive production.

In contrast, Nexperia China rejected the parent company’s claims that it had failed to honor payment terms, calling them “fabricated.” The subsidiary alleged that the Dutch company actually owes its Dongguan plant more than 1 billion yuan ($141 million).

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