Nexperia, a Dutch semiconductor maker, has suspended wafer shipments to its assembly plant in Dongguan, China, effective October 26, due to the local unit’s failure to meet payment terms.

The company sent a letter to customers saying it cannot resume supplies until contractual obligations are met.

Nexperia was taken over by the Dutch government from former Chinese owner Wingtech Technology on September 30, citing governance shortcomings, and the removal of its Chinese CEO was linked to concerns about technology appropriation.

After the takeover, the Chinese unit required payments in yuan rather than in foreign currencies.

Industry bodies have warned of potential supply disruptions. Stellantis set up a monitoring “war room,” while Nissan said it has enough chips until the first week of November.

Some Nexperia chip prices in China have surged over 10x in recent weeks.

🔗 Source: Reuters

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