Nexperia's Wafer Supply Suspension Escalates Global Chip Dilemma

Dutch chipmaker Nexperia has halted wafer supplies to its Chinese assembly facility due to a contractual payment dispute, raising concerns of further tightening supply chains and affecting global automakers. The suspension stems from management's failure to adhere to payment agreements, with no immediate comment from the company.

Dutch chipmaking company Nexperia has unexpectedly suspended its shipment of wafers to its Chinese assembly plant, as confirmed by a letter to customers that Reuters reviewed.

The letter, dated October 29 and signed by Nexperia's interim CEO, Stefan Tilger, outlines that the suspension began on October 26 due to recent issues with the local management's failure to meet agreed contractual payment terms.

Nexperia and its associates, including owner Wingtech Technology, have yet to issue any public statement or respond to requests for comments on the matter, which threatens to exacerbate ongoing challenges in the global automotive supply chain.

(With inputs from agencies.)