Nexperia's Supply Suspension Deepens Global Chip Shortage Woes

Nexperia, a Dutch chipmaker, has paused wafer deliveries to its Chinese facility, escalating a chip shortage that is creating anxiety for automakers worldwide. The suspension stems from a contractual disagreement with local management, as revealed in a letter reviewed by Reuters.

This development follows the Dutch government’s action on September 30, where it seized control of Nexperia from its Chinese owner Wingtech Technology and replaced the Chinese CEO due to technology appropriation concerns. In response, Nexperia's Chinese unit required sales to be settled in yuan.

The company, producing chips heavily utilized in automotive and consumer electronics sectors, cited financial independence from Wingtech. Meanwhile, industry leaders like Stellantis and Nissan are taking steps to mitigate potential production impacts as the situation unfolds.