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Nexperia Halts Material Supplies to China Plants Over Payment-Term Dispute

The stoppage follows months of governance turmoil, with export controls already straining auto chip supplies.

Overview

  • Reuters reported on Oct. 31 that Nexperia stopped sending semiconductor materials to its China factories after payment-related contract terms were not honored.
  • Automotive chip availability has tightened, raising concerns that prolonged disruption could broaden production impacts.
  • Honda temporarily suspended operations at a Mexico plant in late October because of semiconductor shortages tied to the squeeze.
  • The Dutch government previously intervened in Nexperia over corporate-governance defects, and China placed the firm’s China-made products under export restrictions.
  • On Nov. 1, China’s commerce ministry said exemptions could be granted for qualifying exports under certain conditions.