Nexperia halts export of supplies to Chinese chipmaker

Nexperia, the EU-based automotive chipmaker at the centre of a geopolitical dispute, has suspended supplies to its Chinese factory, stepping up a trade war that threatens to halt production at car manufacturers around the world.

- Jasper Jolly

The company wrote to customers this week informing them that all supplies to a Chinese plant had been suspended.

In September, the Netherlands used national security laws to take control of the chipmaker, citing concerns that its Chinese owner, Wingtech Technology, was planning to shift intellectual property to another company it owned.

The Dutch government said that threatened the future of European chip capacity, and removed the Wingtech chairman, Zhang Xuezheng, as chief executive.

China responded by halting exports from all Nexperia's factories in China, prompting warnings this week that the embargo would force production lines at EU car factories to close within days.

An extended blockade threatens the supply chain, because many Nexperia products manufactured in Europe - including the wafers from which chips are cut - were previously shipped to the Chinese factory for packaging and distribution.