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Nexperia Halts Wafer Shipments to China Plant Over Unpaid Obligations

German carmakers have set up crisis teams to manage the heightened risk of chip shortages.

Overview

  • The suspension, effective October 26, stops wafer pre-products from European fabs reaching Nexperia’s assembly and test site in Dongguan, China.
  • In an October 29 letter, interim CEO Stefan Tilger said local management failed to meet payment obligations and shipments will resume only once contracts are fulfilled.
  • Nexperia says it is pursuing alternative solutions to ensure customers continue receiving chips and declined to provide further details.
  • Automakers and suppliers in Germany have activated crisis teams to avoid production disruptions, and no broad factory stoppages have been reported so far.
  • The strain follows the Dutch state’s late‑September move to take control of Nexperia and a subsequent Chinese halt on exports of its finished products, with reports also noting a recent shift by Nexperia China to yuan-based payments.