Dutch chipmaker Nexperia suspends wafer supplies to Chinese plant, ratcheting up chip disruptions

Dutch chipmaker Nexperia has suspended supplies of wafers to its Chinese assembly plant, according to a letter addressed to its customers that was reviewed by Reuters, which could exacerbate a supply squeeze that is worrying automakers worldwide.

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The letter, dated Oct. 29 and signed by Nexperia interim Chief Executive Officer (CEO) Stefan Tilger, said the Oct. 26 suspension affecting its plant in Dongguan, in southern China’s Guangdong province, was “a direct consequence of the local management's recent failure to comply with the agreed contractual payment terms.”

Nexperia has been locked in a dispute with its Chinese unit after the Dutch government took control of Nexperia from its Chinese owner Wingtech Technology on Sept. 30. It also removed its Chinese CEO, citing concerns that its technology could be appropriated by Wingtech.