Nexperia China vows uninterrupted output after wafer halt Nexperia China assured customers Sunday that production will continue without disruption despite its Dutch parent company's suspension of wafer shipments, as diplomatic breakthroughs between the U.S. and China offer potential relief to the global semiconductor crisis. The Chinese division said it has secured "sufficient inventories of finished goods and work-in-progress" and established "multiple contingency plans" to maintain stable supply chains through year-end and beyond. The company is expediting qualification of new wafer suppliers and expressed confidence in achieving full operational capacity next year. Escalating Corporate Dispute The conflict intensified when Nexperia's Dutch headquarters suspended wafer deliveries to its Dongguan assembly facility on October 26, citing the local unit's "failure to comply with agreed contractual payment terms". The Dongguan plant accounts for approximately 70% of Nexperia's global output. Nexperia China fired back, calling the Dutch justification "misleading and highly deceptive". The Chinese unit claimed that Nexperia Netherlands actually owes over 1 billion yuan (approximately $140 million) in outstanding payments to the Dongguan facility. It accused Dutch management of prioritizing "personal interests above the company's overall interests" and demanded they "bear legal responsibility for the losses inflicted on the company and its employees". Diplomatic Breakthrough Offers Hope The standoff emerged after the Dutch government seized control of Nexperia from Chinese owner Wingtech Technology in September, citing national security concerns. China retaliated with export restrictions on Nexperia products manufactured in its facilities. However, a trade agreement reached between President Trump and Chinese leader Xi Jinping in South Korea has provided a pathway forward. Under the deal announced Saturday, China will "take appropriate measures to ensure the resumption of trade from Nexperia's facilities in China," while the U.S. will suspend its "50% subsidiary" export control rule for one year. China's Commerce Ministry said it would grant exemptions to companies that "meet the criteria," though specific requirements remain unclear. The Dutch government welcomed the announcements but declined to comment on Nexperia China's independence plans. The crisis had threatened global automotive production, with companies like Volkswagen and Volvo warning of potential plant shutdowns. European automakers rely heavily on Nexperia's basic power control chips, which are essential for vehicle electronics.
