Nexperia Halts Wafer Shipments to China Facility Amid Internal Conflict

Nexperia, a key supplier of power and control chips for automakers like Volkswagen and BMW, has paused wafer shipments to its China facility. The decision, communicated to customers on October 29, stems from alleged non-compliance with directives from the global headquarters. Bloomberg reports the MOVE exposes internal strife within the chipmaker as global semiconductor supply chains face mounting pressure.

The company cited a lack of transparency and oversight over manufacturing processes at the China facility, warning it could no longer guarantee intellectual property protection, technology standards, or product quality as of October 13. This disruption threatens to exacerbate production delays for automakers already grappling with chip shortages.

Nexperia alleges unauthorized use of corporate seals and dissemination of incorrect information to stakeholders by its China unit. The situation highlights growing tensions in semiconductor supply chains amid geopolitical and operational challenges.