Nexperia Halts Wafer Shipments to China Factory, Triggering Supply Shock for Automakers

Nexperia has suspended wafer shipments to its Dongguan factory, one of the world's largest assembly and testing facilities, dealing a significant blow to automotive supply chains. The facility previously handled half of Nexperia's production volume. A company spokesperson cited commercial infeasibility as the reason for cutting off supply, though contractual disputes with local managers appear to be the immediate cause.

The situation escalates beyond internal disagreements. The Dutch government intervened in September, expressing concerns over Chinese owner Wingtech Technology's alleged interference with operations. An Amsterdam court ousted Wingtech founder Zhang Xuezheng as CEO in October following a petition from Nexperia's management, but Wingtech disputes the accusations and demands his reinstatement.

This power struggle threatens manufacturing stability and intellectual property security at a critical time for automakers already facing supply constraints. The Dutch Ministry of Economic Affairs explicitly linked Zhang's actions to risks facing Nexperia's viability.