Nexperia’s Chinese unit responds to Dutch parent’s chip wafer supply suspension

The Chinese unit of Dutch chipmaker Nexperia has claimed that its supply chain remains “secure and stable” despite its parent company cutting off critical wafer supplies. The statement by Nexperia China comes after the Dutch parent company suspended the shipment of wafers – the core material used to assemble chips – to its Chinese facility on October 26.

The Dutch side cited the Chinese management's “recent failure to comply with the agreed contractual payment terms” as the reason for the halt.

Nexperia China says Dutch parent’s claims ‘irresponsible’ and ‘misleading’

According to news agency Reuters, Nexperia China swiftly refuted the parent company’s explanation in a statement released early Sunday morning, calling the suspension “unilateral” and “extremely irresponsible.”The Chinese unit went on to label the Dutch parent's claim regarding contractual payment terms as “misleading and highly deceptive.”Despite the lack of new wafer shipments from the Netherlands, Nexperia China asserted it has “sufficient inventories of finished goods and work-in-progress” to meet customer demand. The Chinese unit claimed existing stock would sustain order fulfillment “through year-end and beyond.”The company reportedly also announced it has “proactively initiated multiple contingency plans and are accelerating the qualification of new wafer supply sources,” with expectations to meet all customer demands starting next year.

In September, Dutch authorities seized control of Nexperia from its Chinese owner, Wingtech, over concerns about potential technology transfer. Beijing responded to the seizure by blocking Nexperia's products from being exported out of China.This ongoing dispute has increased pressure across the global automotive industry, which relies heavily on Nexperia's basic power-control chips needed in virtually every modern device.