Chipmaker Nexperia said it halted China shipments on payment refusal

By&nbspNadya Oppenheim

Published on 06/11/2025 - 11:42 GMT+1

Dutch semiconductor shaper Nexperia said it suspended shipments of wafers — nan bladed silicon discs utilized to make chips — to its China subsidiary aft nan section portion refused to make payments.

The move adds to a governance situation astatine nan Chinese-owned chipmaker, which plays a cardinal domiciled successful Europe’s car proviso chains.

In a statement, Nexperia said connected Wednesday that its China operations had “stopped operating wrong nan established firm governance framework” and were disregarding instructions from its office successful Nijmegen, nan Netherlands.

It said it could nary longer guarantee nan “intellectual property, technology, authenticity and value standards” of products made astatine its Dongguan works successful confederate China since mid-October.

The institution besides accused nan section squad of opening unauthorised slope accounts and misusing institution seals — actions it said made it intolerable to guarantee oversight of nan factory.

Nexperia produces much than 100 cardinal chips a year, including powerfulness guidance components utilized by carmakers specified arsenic Volkswagen, BMW and Mercedes-Benz. Its wafers are captious to galore low-cost electronics and automotive systems.

The company, owned by Shanghai-listed Wingtech Technology, has been astatine nan centre of governmental tensions since nan Dutch authorities took impermanent power of it successful September. The Hague cited nationalist information concerns and suspended Wingtech’s president Zhang Xuezheng from his domiciled arsenic Nexperia’s CEO.

China responded by concisely blocking exports of Nexperia chips successful early October, a determination that European carmakers warned could disrupt accumulation wrong days earlier curbs were partially lifted.

Nexperia said its different manufacturing sites successful Europe and Asia proceed to run arsenic normal and that it remains “fully committed” to its Chinese unit and customers.

China’s Commerce Ministry accused nan Netherlands of failing to resoluteness issues astatine Nexperia, saying nan suspension of wafer supplies had caused “turmoil and chaos” successful nan world semiconductor proviso chain. It added that nan Netherlands “should carnivore afloat responsibility” and warned of further disruptions.

Nexperia said that it is moving to place “alternative proviso concatenation solutions” and hopes that “de-escalation tin beryllium achieved soon”.

The conflict comes arsenic nan European Commission continues to show China’s export power measures connected chips and uncommon world materials. EU tech commissioner Henna Virkkunen met Nexperia officials past week, saying afterwards connected X that some sides discussed steps to fortify proviso concatenation resilience. Brussels has since invited nan institution to subordinate nan EU’s Chips Act Task Force, which is gathering information connected nan economical effect of ongoing waste and acquisition restrictions.