Advertisement

Nexperia China vows business as usual after Dutch wafer supply halt

Chinese unit says production remains stable and new suppliers secured despite headquarters suspending shipments from Europe

Reading Time:2 minutes
Why you can trust SCMP
3
The logo of Chinese-owned semiconductor company Nexperia is displayed at the chipmaker’s German facility. Photo: Reuters

Nexperia China moved to reassure customers that production will continue uninterrupted, saying it has secured new wafer suppliers and can meet client demand through to the end of the year and beyond.

The Chinese division of the semiconductor maker said it had “multiple contingency plans” in place, according to a bilingual statement published early Sunday.

The announcement underscored Nexperia China’s efforts to operate independently after Dutch authorities took control of its Netherlands parent from Chinese owner Wingtech in September amid concerns over alleged technology transfers.

Advertisement
Nexperia last week suspended wafer shipments to its assembly and testing plant in the southern Chinese manufacturing hub of Dongguan – a facility that accounts for about 70 per cent of the company’s global output – citing the local unit’s failure to comply with the agreed contractual payment terms”.

In the statement, Nexperia China described the Dutch headquarters’ justification for the suspension as “misleading and highly deceptive”.

Advertisement

“Nexperia China has not breached any contracts; on the contrary, Nexperia Netherlands currently owes ATGD over 1 billion yuan (US$140 million) in outstanding payments,” the company said in the statement. ATGD refers to Nexperia’s assembly and testing plant in Dongguan.

It added that the Dutch management team had “put personal interests above the company’s overall interests” and should “bear legal responsibility for the losses inflicted on the company and its employees”.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x