Nexperia’s China arm said it has sufficient inventories to maintain stable production despite the Dutch parent company’s decision to halt wafer supplies. The move, announced on October 26, came after Nexperia Netherlands accused its Chinese subsidiary of breaching contractual payment terms — a claim the Chinese unit has strongly denied.
In a statement posted on Sunday, Nexperia China called the suspension “unilateral and irresponsible,” arguing that the Dutch parent’s allegations were “misleading and highly deceptive.” The Chinese unit added that it has launched multiple contingency plans, secured alternative wafer suppliers, and expects to fulfill all customer orders by next year.
The dispute follows the Dutch government’s takeover of Nexperia from its Chinese owner, Wingtech, in September, citing national security risks. Beijing responded by blocking exports from Nexperia’s Chinese facilities. However, Reuters reported that following a recent summit between U.S. President Donald Trump and Chinese leader Xi Jinping, Washington is expected to allow Nexperia’s China operations to resume shipments.
Nexperia manufactures low-cost but vital components such as transistors and diodes used in nearly all electronic devices. Automakers relying on its chips have expressed concern over potential disruptions, though the company says its current stockpile can cover demand through the end of the year.
