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Nexperia Feud Deepens as China Units Rebuke HQ and Customers Weigh Workaround

An internal halt of wafer shipments keeps pressure on auto supplies despite limited Chinese export licences.

Overview

  • Nexperia’s China operations accused the Dutch head office of “maliciously sabotaging” production in a letter to staff, escalating internal tensions ahead of planned Sino‑Dutch talks next week.
  • Some large customers are negotiating a stopgap in which they buy wafers from Nexperia’s Hamburg fab and separately send them to the Dongguan plant for packaging, a move seen as a short‑term patch.
  • Nexperia Europe halted wafer shipments to China on October 26 citing nonpayment, and the Chinese unit is selling down finished‑goods stockpiles with no clarity on how long they will last.
  • Chinese authorities have begun granting case‑by‑case export licences for chips from Dongguan, easing the immediate squeeze but not resolving the wafer transfer freeze that constrains output.
  • Automakers and suppliers, including members of ACEA and companies such as Volkswagen and Bosch, warn inventories could run low within weeks, even as the Netherlands prepares a delegation to Beijing.